Kenmare Holdings Ltd., a wholly owned subsidiary of Enstar Group Limited, entered into a purchase agreement with Trident V, L.P. along with their affiliated funds, Dowling Capital Partners I, L.P. and Capital City Partners LLC, to acquire all of the remaining common shares of StarStone Specialty Holdings Limited.
Bermuda-based insurance, reinsurance and run-off specialist Enstar Group already owns a large share of StarStone Specialty Holdings Limited. Through this transaction, Kenmare has now acquired the 41% interest in StarStone previously held by Trident and Dowling, resulting in whole ownership of StarStone.
The transaction was completed on December 22nd, 2023. It is expected to be marginally accretive to the company’s book value and settles Trident’s and Dowling’s right to sell their interest in StarStone to Kenmare, which took effect after December 31st, 2022.
The total consideration paid by Kenmare in the transaction was $182.3 million, which comprised a cash payment of $119 million and Kenmare’s 13.5% interest in Northshore Holdings Limited, the parent company of Atrium Underwriting Group Limited and its subsidiaries.
The cash payment made by Kenmare reflected the offset of certain amounts owed to it by Trident and Dowling as outlined in the agreement.
Post completion of the transaction, the company no longer has a direct or indirect ownership interest in Atrium.
Trident comprises funds were managed by Stone Point Capital LLC, which manages investment funds that have a 9.6% interest in the Company.
James D. Carey, one of the company’s directors, is the sole member of an entity that is one of four general partners of such investment funds. Carey is also a member of the investment committees of such general partners and is a member and President of Stone Point
