In a move that reshapes the financial guarantee insurance landscape, Oaktree Capital Management LP has officially acquired Ambac Financial Group Inc.’s legacy units for $420 million in cash, closing a deal that secured approval from Wisconsin regulators.
A Landmark Sale
Ambac, headquartered in New York and listed on the New York Stock Exchange, confirmed Monday that it has completed the transfer of Ambac Assurance Corp. and Ambac Assurance UK Ltd. to Oaktree. These businesses, specializing in financial guarantee insurance, manage old policy books that protect against losses tied to insolvency, interest rate swings, and currency fluctuations—policies no longer being written but still actively overseen.
The sale was cleared after the Wisconsin Office of the Commissioner of Insurance gave the green light, a critical step given Ambac’s roots in Milwaukee and long-standing ties to the state’s insurance market.
Legal Teams Steering the Transaction
The heavyweight deal drew legal firepower on both sides. Kirkland & Ellis LLP advised Oaktree, while Debevoise & Plimpton LLP represented Ambac.
