Sun Life to purchase $338m stake in US investment manager Crescent
Canadian insurer Sun Life Financial is to acquire a majority stake in alternative credit investment manager Crescent Capital Group for up to $338 million.
Sun Life will acquire a 51 percent interest in Crescent with an upfront payment of $276 million and a future payment of up to $62 million based on the achievement of certain milestones.
Additionally, Sun Life has committed to co-invest up to $750 million in Crescent's investment strategies, supporting the launch of new products and creating alignment with Crescent's investors.
Headquartered in Los Angeles with offices in New York, Boston and London, Crescent, which has approximately $28 billion in assets under management as of June 30, 2020, will form part of SLC Management, Sun Life's alternatives asset management business.
Crescent will continue to operate independently under its current leadership.
Steve Peacher, president of SLC Management, said: "We've been looking to expand our alternative credit capabilities for some time now, offering our clients a broader, deeper array of investment solutions across the public and private credit markets, infrastructure, real estate equity and debt."
Mark Attanasio, co-founder and managing partner of Crescent Capital Group, commented: "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."
Jean-Marc Chapus, co-founder and managing partner of Crescent, added: "With our longstanding investment track record, we look forward to further building upon our existing alternative credit investment capabilities, as well as providing clients with new investment strategies as the demand for yield grows globally among our roster of leading institutional investors."
