ZUG, Switzerland--(BUSINESS WIRE)--Allied World Assurance Company Holdings, AG announced today an investment agreement with Blue Vista Capital Management LLC (“Blue Vista”), a Chicago-based real estate private equity firm. Blue Vista invests across real estate asset classes and capital structures through limited partnerships and separate accounts. Allied World’s investment will be made through Allied World Financial Services, Inc. (“AWFS”), a subsidiary of Allied World that invests in businesses intended to complement and diversify Allied World’s revenue streams.
Under the terms of the transaction, AWFS acquired a minority interest and certain shareholder rights in Blue Vista, and agreed to provide growth capital for the expansion of Blue Vista’s real estate investment platform. Blue Vista will manage $225 million of Allied World’s investment portfolio to be deployed over the next several years through various real estate investments, including their existing middle market co-investments and student housing strategies.
The CenterCap Group, LLC advised Allied World on the transaction.
John Gauthier, President of AWFS, commented, “This is Allied World’s first foray into investing in the real estate sector and real estate asset management. We selected Blue Vista as a partner based on their prudent investment strategy, the expertise of their management team and their consistent record of success.”
Scott Carmilani, President and Chief Executive Officer of Allied World, added, “This strategic partnership is complementary to our existing asset management relationships, and we are excited to have the opportunity to work with Blue Vista's principals and long-term real estate investors, Peter Stelian and Robert Byron.”
“This is a truly unique opportunity for us as a firm,” said Peter Stelian, CEO and co-founder of Blue Vista. “We are honored that Allied World has selected us for this strategic alliance; it serves as testament to the quality of relationships that we have built with our investors and operating partners as well as recognition of all of the hard work of our terrific team of employees. This opportunity will further enhance our existing investment model by providing us significant capital for our current products, new funds, as well as the ability to launch new initiatives. Allied World has a tremendous reputation in the industry and we are excited to help expand their investment platform.”
About Allied World
Allied World Assurance Company Holdings, AG, through its subsidiaries and brand known as Allied World, is a global provider of innovative property, casualty and specialty insurance and reinsurance solutions. Allied World offers superior client service through a global network of offices and branches. All of Allied World's rated insurance and reinsurance subsidiaries are rated A by A.M. Best Company, A by Standard & Poor's, and A2 by Moody's, and our Lloyd's Syndicate 2232 is rated A+ by Standard & Poor's and Fitch.
About Blue Vista
Blue Vista Capital Management, LLC, founded in 2002 and headquartered in Chicago, has raised in excess of $1.1 billion of institutional equity, and currently manages four closed-end funds, two separate accounts and one joint venture relationship with approximately $5.25 billion of assets under management. The firm’s clients include institutional investors, pension plans, insurance companies, the world’s largest university endowment and select family offices and high net worth investors. For more information on the firm, please visit www.bluevistallc.com.
Cautionary Statement Regarding Forward-Looking Statements
Any forward-looking statements made in this press release reflect Allied World’s current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties, which may cause actual results to differ materially from those set forth in these statements. For example, Allied World’s forward-looking statements could be affected by pricing and policy term trends; increased competition; the adequacy of Allied World’s loss reserves; negative rating agency actions; greater frequency or severity of unpredictable catastrophic events; the impact of acts of terrorism and acts of war; the company or its subsidiaries becoming subject to significant income taxes in the United States or elsewhere; changes in regulations or tax laws; changes in the availability, cost or quality of reinsurance or retrocessional coverage; adverse general economic conditions; and judicial, legislative, political and other governmental developments, as well as management's response to these factors, and other factors identified in Allied World’s filings with the U.S. Securities and Exchange Commission. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. Allied World is under no obligation (and expressly disclaims any such obligation) to update or revise any forward-looking statement that may be made from time to time, whether as a result of new information, future developments or otherwise.