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.

In addition, BlackRock Inc. provided valuation support to Oaktree, underscoring the high-stakes nature of the transaction.

Strategic Shifts for Both Players

For Ambac, which now leans heavily into specialty property and casualty insurance, the divestiture allows a sharper focus on its role as a managing general agent (MGA)—an insurance intermediary with underwriting authority.

“This transaction enables us to focus exclusively on long-term growth and value creation,” said Claude LeBlanc, Ambac’s president and CEO.

Meanwhile, Oaktree, which oversees $209 billion in assets under management, views the acquisition as a bold step toward strengthening its presence in strategic financial services.

“The deal underscores our commitment to partnering with companies seeking successful transformations,” noted Greg Share, managing director of Oaktree’s global opportunities group.

Looking Ahead

With Ambac freed from its legacy obligations and Oaktree expanding its insurance footprint, the transaction represents more than a handoff—it’s a calculated pivot that signals how investment firms and insurers are rewriting their playbooks for future growth.