Former US Treasury Secretary Steve Mnuchin’s Liberty Strategic Capital and J.C. Flowers join the deal
- Sixth Street Partners leads a $5.1 billion deal to take Enstar Group private
- Enstar shareholders to receive $338 per share in cash
- Consideration represents an 8.5% premium to the 90-day volume-weighted average price of shares
- Deal includes a 35-day ‘go-shop’ period for Enstar to seek better offers
- Transaction expected to close next year
- Private equity firms have increased involvement in insurance sector
Private credit firm Sixth Street Partners is leading a $5.1 billion deal to take insurer Enstar Group private, with former US Treasury Secretary Steve Mnuchin’s Liberty Strategic Capital and J.C. Flowers among other private equity firms participating. Enstar shareholders will receive $338 per share in cash, representing an 8.5% premium on the 90-day volume-weighted average price of shares. The deal includes a 35-day ‘go-shop’ period for Enstar to seek better offers and is expected to close next year. Private equity firms have been increasingly involved in the insurance sector, with assets under management reaching $534 billion in US insurers by 2022.
Factuality Level: 8
Factuality Justification: The article provides accurate information about the acquisition of Enstar Group by Sixth Street Partners, including details on the deal’s valuation, premium, and the involvement of other private-equity firms in the insurance sector. It also includes relevant background information on Enstar’s history and Sixth Street Partners’ background. The article is not sensational or opinionated, and there are no logical errors or inconsistencies.
Noise Level: 6
Noise Justification: The article provides relevant information about the acquisition of Enstar Group by Sixth Street Partners and its partners, including the valuation and premiums involved. However, it lacks a deeper analysis or exploration of the long-term trends or consequences of private equity firms’ involvement in the insurance sector.
Public Companies: Enstar Group (ESNT), Goldman Sachs Group (GS)
Private Companies: Sixth Street Partners,Liberty Strategic Capital,J.C. Flowers,Apollo Global Management,Athene Holding,Blackstone,KKR & Co.,Ares Management,Carlyle Group,Brookfield
Key People: Steve Mnuchin (Former U.S. Treasury Secretary)
Financial Relevance: Yes
Financial Markets Impacted: Insurance sector
Financial Rating Justification: The article discusses the acquisition of insurer Enstar Group by private-equity firm Sixth Street Partners, which involves a significant amount of money and impacts the insurance industry. The deal values Enstar at $5.1 billion and includes private-equity firms such as Liberty Strategic Capital and J.C. Flowers. This acquisition highlights the increasing involvement of private-equity firms in the insurance sector.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text.
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