Sun Life Financial is set to buy a 51% stake in alternative credit investment manager Crescent Capital Group, which managed around $28bn in assets as of 30 June 2020.
Crescent will be part of Sun Life’s alternatives asset management arm, SLC Management.
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All the parties concerned are signatories of the Principles of Responsible Investing (PRI).
Transaction details
Crescent will retain its operational independence upon deal completion later this year.
It will also retain its brand, offices, management team, and clients.
Sun Life will pay up to $338m for the deal, which awaits regulatory nod.
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By GlobalDataThe consideration includes an upfront payment of $276m, and a deferred payment of up to $62m depending on the fulfilment of certain milestones.
The equity holders of Crescent will continue to hold carried interests in existing funds as well as certain assets and their respective economics.
The deal also includes a put / call option, enabling the transfer of remaining interests five years from deal completion.
Sun Life also pledged to co-invest up to $750m in Crescent’s investment strategies in order to facilitate the roll-out of new products.
Los Angeles-based Crescent has a workforce of over 180, who serve clients through offices in New York, Boston and London. The firm was set up in 1991.
Crescent co-founder and managing partner Mark Attanasio said: “This partnership represents the next stage of growth for Crescent.
“In getting to know the team at Sun Life and SLC Management, we feel confident our clients will benefit from the significant seed capital they are providing, their deep understanding of the asset management business, and commitment to Crescent retaining full investment and operational independence of the firm.”
Sun Life offers insurance, wealth and asset management solutions and has a presence in Canada, the US, the UK, Hong Kong, Japan, India, China, Australia, Singapore, Malaysia, and Bermuda among others.
It managed $1.12trn at the end of June 2020.
The firm was recently in the news for expansion of its partnership with national insurance programme manager The MGIS Companies for another 10 years.
