Third Point, the $12bn alternative investment firm founded by Daniel S Loeb, has agreed to acquire AS Birch Grove, an $8bn alternative credit fund manager, with the transaction expected to close during the first quarter of the year.
The deal will see Birch Grove become a subsidiary of Third Point, with current owner American Securities exiting the business.
Third Point, known for its event-driven equity and credit strategies, has steadily expanded its credit offerings since launching dedicated credit funds in 2020. The acquisition of Birch Grove will enhance Third Point’s capabilities in alternative credit, particularly in collateralised loan obligations (CLOs), opportunistic private credit, and high-yield bonds.
Third Point’s recent ventures include the 2024 launch of Malibu Life, a Cayman Islands-based life and annuity reinsurer, as part of its broader strategy to enter liability-driven investing. The addition of Birch Grove’s diversified credit expertise aims to further serve Third Point’s investors across asset classes.
Following the acquisition, Birch Grove CEO and CIO Jonathan Berger will retain his leadership role at Birch Grove while also becoming Co-Head of Credit at Third Point alongside Partner Ian Wallace. Other key Third Point credit leaders — Shalini Sriram, Chris Taylor, and Stephen Schatzman — will continue to lead their respective strategies, maintaining focus on structured, private, and opportunistic credit.
While Birch Grove and Third Point’s existing funds will operate separately, Berger will collaborate with Third Point’s leadership to develop new investment products that leverage the firms’ complementary credit platforms.
Founded in 2013, Birch Grove manages $8bn across various credit strategies, with over $5bn in CLO investments. The firm employs 17 credit analysts and five credit origination professionals, sourcing opportunities across North America and Europe. Its senior leadership, including Berger and President Andrew Fink, will remain in place post-acquisition.
In a press statement, Loeb said: “Birch Grove’s businesses further diversify our credit platform. Their well-established CLO franchise and complementary private credit capabilities align perfectly with our strategic goals. Together, we’ll deliver compelling solutions for our investors seeking alternative-credit opportunities.”
Jefferies acted as Third Point’s financial advisor, with legal counsel provided by Willkie Farr & Gallagher. Birch Grove was advised by GreensLedge Capital Markets and Schulte Roth & Zabel. American Securities was represented by Weil, Gotshal & Manges.
