Third Point to acquire AS Birch Grove to boost credit capabilities

Third Point LLC, a leading alternative investment manager with $12 billion in assets, has revealed its acquisition of AS Birch Grove LP, a diversified alternative credit fund manager. This deal, set to close in the first quarter of 2025, represents a major step in Third Point’s ongoing efforts to strengthen its credit investment platform while broadening its capabilities in structured and private credit markets.

The acquisition will see AS Birch Grove, currently owned by American Securities, transition to a wholly-owned subsidiary of Third Point, further consolidating its position in the alternative credit sector.

Third Point’s Strategic Growth in Credit Investments

Founded in 1995 by Daniel S. Loeb, Third Point is renowned for its expertise in event-driven investing across equities, venture capital, and credit strategies. The firm has continually evolved to address investor demand for diversified credit solutions, notably launching dedicated credit funds in 2020. Its strategic initiatives include the recent establishment of Malibu Life Re, a Cayman Islands-based life and annuity reinsurer, which highlights Third Point’s broader expansion into liability-driven investments.

The acquisition of Birch Grove marks a pivotal addition to Third Point’s credit portfolio, integrating Birch Grove’s established reputation in collateralized loan obligations (CLOs), opportunistic private credit solutions, and other specialized credit strategies.

Daniel S. Loeb, CEO of Third Point, emphasized the complementary nature of Birch Grove’s expertise, particularly its robust CLO franchise and capital solutions business, as key to enhancing Third Point’s ability to serve its investors effectively across asset classes.

Birch Grove: A Leader in Alternative Credit

AS Birch Grove, founded in 2013 by Jonathan Berger and Andrew Fink, manages $8 billion in assets and has earned a reputation as a leader in corporate and structured credit investments. With over $5 billion allocated to CLOs, Birch Grove’s portfolio spans senior loans, high-yield bonds, and multi-strategy credit solutions, making it a significant player in both liquid and private credit markets.

The firm’s investment approach is underpinned by a team of 17 seasoned credit analysts and five credit origination professionals who actively source opportunities across North America and Europe. This expertise aligns with Third Point’s commitment to delivering superior returns through diversified credit strategies.

Jonathan Berger, CEO and Chief Investment Officer of Birch Grove, expressed optimism about joining the Third Point platform, citing its extensive track record in credit markets and experienced team as catalysts for driving future growth.

Leadership Integration and Future Plans

Upon closing, Jonathan Berger will maintain his leadership role at Birch Grove while assuming additional responsibilities as Co-Head of Credit at Third Point. He will work alongside Ian Wallace, a partner at Third Point, to oversee the firm’s expanded credit platform. Other senior leaders, including Shalini Sriram, Chris Taylor, and Stephen Schatzman, will continue managing their respective credit strategies within the combined organization.

While Birch Grove and Third Point’s funds will remain operationally independent, both firms will collaborate on developing innovative investment products. These initiatives aim to capitalize on their complementary expertise and meet the growing demand for alternative credit opportunities among institutional and private investors.

Ian Wallace highlighted the enhanced capabilities this acquisition brings to Third Point’s credit platform, emphasizing the benefits of diversification for their investor base.

The Broader Implications of the Deal

For American Securities, the transaction marks the end of its ownership of Birch Grove, which it had nurtured as an opportunistic credit business since 2006. Michael Fisch, CEO of American Securities, expressed pride in Birch Grove’s achievements and extended well wishes for its future under Third Point’s ownership.

Advisors for the deal included Jefferies LLC and Willkie Farr & Gallagher for Third Point, GreensLedge Capital Markets LLC and Schulte Roth & Zabel LLP for Birch Grove, and Weil, Gotshal & Manges LLP for American Securities.

Enhancing Investor Opportunities

The acquisition of AS Birch Grove signals Third Point’s determination to deliver value through diversification and innovation in credit investing. By combining forces, the firms are poised to offer enhanced solutions tailored to the evolving needs of investors seeking high-quality alternative credit opportunities.

As the transaction closes in 2025, industry analysts will be watching how this strategic move shapes Third Point’s position in the competitive landscape of alternative investments.