Ropes & Gray Represents SkyKnight Capital and Dragoneer Investment Group on Recapitalization of StarStone U.S. Holdings

Enstar Group Limited (Enstar) announced on June 10 that it agreed to a recapitalization of StarStone U.S. Holdings, Inc. (StarStone U.S.) led by SkyKnight Capital, L.P. (SkyKnight), Dragoneer Investment Group (Dragoneer) and Aquiline Capital Partners LLC (Aquiline). Ropes & Gray represented SkyKnight and Dragoneer on the transaction.

SkyKnight, Dragoneer and Aquiline committed $610 million in new equity capital which, together with the rollover of Enstar’s existing ownership, and an additional equity commitment of over $20 million from management, will increase the equity capitalization of StarStone U.S. to over $850 million. Enstar will receive a combination of cash consideration and shares in the recapitalized StarStone U.S, valued at a modest premium to book value. The recapitalization is expected to close in the second half of 2020 after obtaining customary regulatory approval.

The Ropes & Gray team advising SkyKnight and Dragoneer included asset management partner Sarah Davidoff, private capital transactions partners Howard Glazer and Thomas Holden, private capital transactions associates Elizabeth Rahn Gallucci, Jake Penniman, and Marc Migliazzo, asset management associate Kyung Paik, and corporate associate Stacey Ward.