Allied World Assurance Co., the Swiss reinsurer with Farmington operations, is buying a minority stake in New York private equity firm MatlinPatterson, who will gradually oversee $500 million of Allied World’s securities portfolio, authorities say.
Financial terms weren’t disclosed.
MatlinPatterson co-founder Mark Patterson is a former Allied World board member, Allied said.
Allied World CEO Scott Carmilani said the insurer recently launched its Financial Services Co., under the direction of John Gauthier, to diversify its earnings stream with business relationships that will complement its core property and casualty business.
“This agreement will allow for a collaborative approach to investing in liquid credit strategies and is designed to maximize flexibility while maintaining a multi-year capital commitment,” Carmilani said. “Both firms believe that this approach is best suited for the current investment environment.”
Allied World was advised by Berkshire Capital Securities LLC in the deal.
