Sixth Street Completes $5.1B Acquisition of Enstar Group

Enstar Group Limited, a global legacy reinsurance specialist, has been acquired by investment firm Sixth Street for $338 per ordinary share, valuing the company at $5.1 billion. This acquisition deal was first announced in July 2024 and involved several institutional investors, including Liberty Strategic Capital and J.C. Flowers & Co. LLC. Enstar shareholders approved the acquisition during a Special General Meeting in November 2024.

The acquisition marks Enstar's transition to a private company status, which the CEO, Dominic Silvester, notes as a key milestone for expanding the group’s position in the global reinsurance market. Sixth Street, led by Co-Founder Michael Muscolino, highlights Enstar’s strong business model and management team as key reasons for the investment, signaling continued strategic growth and innovation in the sector.

Following the acquisition, Enstar plans to delist its depositary shares from Nasdaq and will not seek listing on another national exchange. This move reflects the company’s private ownership status and focuses on internal strategic execution without the obligations of public market reporting.

Advisory roles in this transaction included Goldman Sachs and prominent legal firms for Enstar, while Sixth Street was supported by major financial and legal advisory teams. The transaction illustrates the ongoing consolidation and investment interest in the legacy reinsurance space, where firms seek to leverage robust business models to maintain competitive advantage.

Overall, this deal underscores an increasing trend of private equity involvement in the reinsurance industry, emphasizing the importance of strategic capital in sustaining innovation and operational growth in a complex regulatory environment. The withdrawal from public trading is a significant regulatory and compliance step, changing the company’s reporting and governance structure, which will impact stakeholders and market transparency moving forward.