Alleghany Promises $1.25B In Exchange For Ares Stake

Law360, New York (July 31, 2013, 1:19 PM EDT) -- Alleghany Corp., an investment holding company best known for its insurance operations, poured $250 million into private equity investor Ares Management LLC in exchange for a minority stake and will sink an additional $1 billion into the firm under a new strategic partnership, the firms announced Wednesday.

In the first prong of the investment, Alleghany's $250 million buy-in will give it a 6.25 percent equity stake in Los Angeles-based Ares. The payment will be used as sponsor capital and funneled into the firm's investment vehicles, it...
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