Advantage Capital Holdings (A-CAP), a New York-based insurance and financial services company with more than $16 billion in assets under management, announced that it has signed a master transaction agreement with funds managed by global alternative investment manager Oaktree. Under the agreement, Oaktree plans to acquire a controlling stake in Atlantic Coast Life Insurance Company (ACL), which is currently part of the A-CAP platform. At the same time, Oaktree will provide capital support to Sentinel Security Life Insurance Company through a surplus note investment funded into a newly created captive insurance company.
According to the announcement, the net proceeds from the transaction and the additional capital support will be directed toward strengthening Sentinel Security Life’s long term growth and supporting its policyholders.
The companies indicated that the transaction is designed to improve the balance sheet profile of the businesses involved while enabling continued development of their insurance operations. Oaktree’s investment is also expected to support disciplined growth and enhance the companies’ asset liability management strategies.
Completion of the transaction remains subject to several conditions, including A-CAP carrying out a series of restructuring steps necessary to carve out Atlantic Coast Life from its existing structure. The deal also requires regulatory approvals and other customary closing conditions before it can be finalized.
As part of the transaction process, A-CAP has engaged Moelis & Company LLC as its exclusive financial advisor. Legal counsel to A-CAP is being provided by Michelman & Robinson, LLP and Croke Fairchild Duarte & Beres LLC. Oaktree is being advised by Goldman Sachs & Co. LLC as its exclusive financial advisor, with Debevoise & Plimpton LLP serving as legal advisor.
Founded in 2013, A-CAP operates a platform of insurance and financial services businesses that include primary insurance carriers, reinsurance vehicles, an SEC registered investment adviser, and marketing organizations. The company has offices in New York, Charleston, Miami, and Salt Lake City.
Oaktree is a global investment manager specializing in alternative investments, with approximately $223 billion in assets under management as of December 31, 2025. The firm focuses on opportunistic, value oriented investments across credit, equity, and real estate.
KEY QUOTES:
“A-CAP is pleased to work with Oaktree given its track record of investing alongside insurers, particularly during times of transition. While we have significant work ahead of us to successfully carry out the transactions contemplated by our agreement, Oaktree’s insurance-focused credit expertise and flexible, long-term capital will support disciplined growth of our balance sheet, enhance our asset liability profile, and strengthen our ability to serve our policyholders and distribution partners over the long term.”
Kenneth King, Chairman And CEO, Advantage Capital Holdings (A-CAP)
“We are pleased to reach agreement with A-CAP on a multifaceted transaction that we believe benefits all stakeholders of Sentinel and Atlantic Coast Life. We look forward to working with the many parties involved – namely, the state regulators, rating agencies, reinsurers, and distributors – as A-CAP and its carriers work to complete the various steps required to close the transaction.”
Jake Wagner, Managing Director, Global Opportunities, Oaktree
“Our planned acquisition of Atlantic Coast Life is the latest in a series of insurance investments where we partner with companies during a period of market dislocation or transition. The company will benefit from our meaningful experience in regulated carve-outs as it works to complete its pre-closing transaction milestones. Following closing, we believe both Atlantic Coast Life and Sentinel will be well positioned to prioritize policyholder protection, financial strength, and sustainable long-term growth.”
Patrick C. George, Senior Vice President, Global Opportunities, Oaktree
Clinton Mora is a reporter for Trending Insurance News. He has previously worked for the Forbes. As a contributor to Trending Insurance News, Clinton covers emerging a wide range of property and casualty insurance related stories.