J.C. Flowers is getting back some of its investment in AmeriLife after a nearly four-year hold.
The insurer is refinancing $234 million in loans and plans to use proceeds to pay out a shareholder dividend, as well as pay related fees and expenses, Moody’s said.
It’s unclear how big the dividend is and whether AmeriLife has issued other distributions. AmeriLife did not return requests for comment.
J.C. Flowers acquired AmeriLife in 2015. The deal was reportedly valued at $500 million. Reservoir Capital Group and Black Diamond Capital Partners, the sellers, reinvested in the deal.
A Black Diamond executive said the firm no longer owns a stake in AmeriLife.
AmeriLife is the Clearwater, Florida, developer and distributor of annuities, life and health and Medicare insurance products across the U.S. and Puerto Rico, mainly to the senior market. The company produced $168 million in 2018 revenue, Moody’s said.
J.C. Flowers, New York, was founded by J. Christopher Flowers, the former Goldman Sachs executive who was once considered the most successful investment banker ever.
Flowers is known for his takeover of Long-Term Credit Bank of Japan (now called Shinsei Bank) in 2000, an acquisition that is considered one of the most profitable PE deals ever.
The firm in 2017 sought to sell its remaining 20 percent-plus stake in Shinsei, the Financial Times reported. The stake was not sold; Flowers continues to list Shinsei as an investment.
Flowers launched the financial-services-focused buyout shop in 1998. J.C. Flowers invests in insurance and reinsurance, banks, specialty and consumer finance, as well as services, asset management and fintech.
Flowers has raised four funds. This includes a $900 million pool in 2002 and a $7 billion fund in 2006, PitchBook said. The firm’s third fund raised $2.3 billion, a source said. Flowers’s fourth pool collected $669.4 million in 2017, according to an SEC filing.
Executives for Flowers and Reservoir Capital could not immediately be reached for comment.
Action Item: For more information, check out Flowers fourth fund here