Kirkland & Ellis represented Värde Partners, Inc. (Värde), a leading global alternative investment firm, on its agreement to form a strategic partnership with American Equity Investment Life Holding Company (American Equity) (NYSE: AEL), a leading issuer of fixed index annuities, and Agam Capital Management, LLC (Agam), an insurance solutions provider. The partnership is intended to be finalized in the first half of 2021, pending regulatory approvals and customary closing conditions.
Under the terms of the agreement in principle, Värde will establish a Bermuda reinsurance company that would reinsure $5 billion of American Equity fixed index annuity liabilities. American Equity and Värde will also jointly establish an asset management entity to provide insurance asset management services to the reinsurance company. American Equity is intended to have a significant minority interest in the new reinsurer and a 35% interest in the newly formed asset manager.
The Kirkland team was led by transactional partners Rajab Abbassi (insurance), James Hu and Parimah Hassouri (insurance regulatory), and investment funds partner Scott Moehrke.