Nassau Financial Group Closes Strategic Transaction and Capital Raise

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Nassau Financial Group, L.P. (“Nassau”) and Angel Island Capital Management, LLC (“AIC”) today announced that Nassau has merged with AIC.

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Business Wire, Inc.Business Wire, Inc.
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Monday, January 9, 2023
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Professional Services, Insurance, Finance, Sidley Austin, CMBS, Golden Gate Capital, Paul, Weiss, Rifkind, Wharton & Garrison, P.C, Acquisition, Growth, AIC, Insurance, Investment, Kirkland & Ellis, Clos, Maynard, Cooper & Gale, AUM, Tetragon Financial Group, Bank, Risk management, Security (finance), Balance Point
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UNITED STATES, NORTH AMERICA, CALIFORNIA, CONNECTICUT, EUROPE, US
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NASSAU FINANCIAL GROUP, ANGEL ISLAND CAPITAL, GOLDEN GATE CAPITAL
Summary
Key Points: 
  • Nassau Financial Group, L.P. (“Nassau”) and Angel Island Capital Management, LLC (“AIC”) today announced that Nassau has merged with AIC.
  • Founded in 2008 by Golden Gate Capital, AIC is a specialty credit investment firm that currently manages $3.6 billion in assets including its balance sheet capital of approximately $300 million.
  • “This transaction significantly strengthens Nassau’s financial profile, adding an incremental $300 million in capital and third-party fee earning AUM, in support of our growth plans,” said Phil Gass, Chairman and CEO of Nassau.
  • Kirkland & Ellis LLP and Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal advisors to Golden Gate Capital.


Nassau Financial Group, L.P. (“Nassau”) and Angel Island Capital Management, LLC (“AIC”) today announced that Nassau has merged with AIC. AIC has become a subsidiary of Nassau’s asset management segment, Nassau Asset Management LLC.

Founded in 2008 by Golden Gate Capital, AIC is a specialty credit investment firm that currently manages $3.6 billion in assets including its balance sheet capital of approximately $300 million. AIC will continue to be led by Alex Dias, CEO and Managing Director, and Jonathan R. Insull as Lead Portfolio Manager and Managing Director.

“This transaction significantly strengthens Nassau’s financial profile, adding an incremental $300 million in capital and third-party fee earning AUM, in support of our growth plans,” said Phil Gass, Chairman and CEO of Nassau. “AIC has established itself as a differentiated credit manager with a strong performance track record and talented team. We are excited to welcome the AIC team to the Nassau family and appreciate Golden Gate Capital’s continued support and long-term commitment to expanding the Nassau platform.”

“We are thrilled to join Nassau’s growing asset management business,” said Mr. Dias. “The combination further strengthens AIC’s capabilities and will lead to enhanced distribution and product opportunities as we look to offer our investment strategies to insurance companies. We remain focused on delivering innovative credit solutions across the capital structure to our borrowers and will leverage Nassau’s exceptional team and network to accomplish those goals.”

“Nassau and AIC are a natural fit. This compelling combination will allow Nassau and AIC to leverage their unique strengths and attributes, making both companies stronger than they would be separately,” said Dan Haspel, a Managing Director at Golden Gate Capital. “Importantly, this transaction brings together two world-class teams. We look forward to continuing to support their growth after this merger.”

AIC will complement Nassau’s existing asset management businesses, adding new credit capabilities to its suite of specialty finance strategies. Nassau’s asset management business currently oversees more than $18 billion of assets as of September 30, 2022, of which $7.4 billion are third-party assets and managed across the company’s investment strategies:

  • Nassau Corporate Credit invests in broadly syndicated bank loans and manages collateralized loan obligations (CLOs) in the US and Europe.
  • Nassau Private Credit invests in structured credit with a focus on control equity and debt tranches of third-party managed CLOs.
  • Nassau Alternative Investments invests in private equity and credit funds, direct and co-investments, and manages collateralized fund obligations.
  • Nassau CorAmerica invests in real estate including commercial whole loans, credit tenant leases, CMBS and commercial real estate equity.
  • Balance Point Capital Advisors invests in private debt of lower middle market companies across various investment vehicles. Nassau has a non-controlling minority interest in Balance Point.

The AIC merger is the latest expansion of Nassau’s asset management business, following its strategic investment in Balance Point in late 2021, the formation of Nassau Corporate Credit, Nassau Private Credit, and Nassau Alternative Investments over the prior six years, and the acquisition of Nassau CorAmerica in 2016.

Sidley Austin LLP and Maynard Cooper & Gale, P.C. served as legal advisor and special counsel, respectively, to Nassau. Kirkland & Ellis LLP and Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal advisors to Golden Gate Capital.

About Nassau Financial Group

Based in Hartford, Connecticut, Nassau Financial Group is a growth focused and digitally enabled financial services company with three distinct and closely connected businesses: insurance, reinsurance and asset management. Nassau was founded in 2015 and has approximately $1.1 billion in total adjusted capital and over $18 billion in AUM as of September 30, 2022. For more information, visit nfg.com.

About Angel Island Capital

Angel Island Capital was founded in 2008 and invests in bonds and loans, managing $3.6 billion in assets as of September 30, 2022. AIC invests through two distinct traded credit investment strategies: Credit Opportunities, its flagship strategy, capitalizes on dislocations in the credit markets with a focus on complex, idiosyncratic situations. Liquid Credit invests in performing bonds and loans. For more information, visit aicap.com.

About Golden Gate Capital

Golden Gate Capital is a San Francisco-based private equity investment firm with over $19 billion in cumulative committed capital. With a long-term investment philosophy, the principals of Golden Gate Capital have a long and successful history of investing across a wide range of industries and transaction types, including going-privates, corporate divestitures, and recapitalizations, as well as debt and public equity investments. For more information, visit www.goldengatecap.com.

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