Financial pressure on A-Cap, the US-based minority shareholder of Genoa, is intensifying after one of its insurance subsidiaries agreed to stop writing new policies in Virginia and its planned deal with Oaktree Capital Management was reported to have stalled.
Atlantic Coast Life Insurance, part of Advantage Capital Holdings (A-Cap), will stop writing new insurance policies in Virginia from November 1 following a review by the state’s regulator of the company’s financial position. The insurer will remain able to administer existing policies and pay claims.
The Virginia restrictions are the latest regulatory intervention involving A-Cap’s insurance operations. Authorities in South Carolina have sought rehabilitation proceedings for Atlantic Coast Life and its subsidiary Southern Atlantic Re, while Florida suspended the company’s authority to write new policies and renewals from September 30.
Virginia regulators have also identified a potential capital injection of at least $50 million from A-Cap as one of the conditions that could support a review of the restrictions.
Oaktree deal stalls
The developments come alongside a setback to A-Cap’s planned transaction with Oaktree Capital Management.
The deal, announced in March, was designed to give funds managed by Oaktree a controlling stake in Atlantic Coast Life Insurance, while also providing additional funding to Sentinel Security Life Insurance, another A-Cap-owned insurer.
Bloomberg has reported that Oaktree is no longer proceeding with the acquisition under the terms originally outlined. Concerns from regulators over the insurers’ financial exposure to 777 Partners, the US investment firm that collapsed and previously controlled Genoa, are understood to have played a role.
The discussions have not necessarily ended. A-Cap has confirmed that it remains in talks with Oaktree over an alternative structure that could secure regulatory approval in South Carolina.
Genoa connection
A-Cap’s financial difficulties are also closely linked to its minority stake in Genoa.
The US group became involved in the club’s ownership structure following financing provided to 777 Partners and subsequently challenged the capital increase through which Romanian businessman Dan Șucu took control of Genoa in December 2024.
A-Cap’s roughly 23% stake in Genoa remains under a precautionary seizure. In June 2026, the Genoa court rejected a claim brought by ACM Delegate LLC, a company controlled by A-Cap, and upheld the validity of the capital increase and the corporate decisions that resulted in the change of control.
The seized stake has been valued at €28.1 million and is linked to a dispute over an unpaid debt owed to Genoa.
A-Cap has also been advised by Don Dransfield, a former executive at City Football Group, the owner of Manchester City. Dransfield later joined 777 Partners to oversee its football portfolio before becoming a consultant to A-Cap.
The company had sought to have Dransfield testify in the dispute over Genoa’s capital increase, but the court rejected the request.
With regulatory pressure mounting on its insurance operations and the Oaktree transaction no longer progressing under its original terms, A-Cap faces an increasingly complex financial restructuring process.