Sun Life buys majority stake in U.S.-based Advisors Asset Management with option to acquire rest of company


Sun Life Financial Inc. SLF-T is acquiring a 51% stake in US-based Advisors Asset Management Inc. for US$214 million, with an option to acquire the rest of the company later.

The deal is being done through SLC Management, Sun Life’s institutional fixed income and alternative asset manager, and Colorado-based AAM will become the new U.S. retail distribution arm for SLC Management, Sun Life said in a news release.

AAM offers a wide range of products and services to full-service brokerage firm financial advisors, registered investment advisors and independent broker-dealers. With 10 offices in eight US states, AAM oversees $41.4 billion in assets as of July 31.

Sun Life will have the option to acquire the remaining 49% of AAM beginning in 2028.

Sun Life Financial sells UK business for $385 million

As part of the agreement, Sun Life also agrees to invest up to US$400 million to launch SLC Management’s alternative products for the US retail market, which will be distributed by AAM.

Sun Life said that with growing demand for alternative assets among affluent investors in the United States, the majority stake in AAM will allow SLC Management and its affiliated investment managers – BentallGreenOak, Crescent Capital Group and InfraRed Capital Partners – to offer their investment strategies to the US high net worth market.

Steve Peacher, president of SLC Management, said in the statement that his company has been looking to enter the retail distribution segment for some time and has “seen a sustained increase in demand for alternatives from high net worth individuals. and ultra-high. equity market as they seek to add new sources of yield and total return.

Sun Life Financial sells its UK division as profits beat estimates

Mr. Peacher said the agreement will allow SLC Management to expand its alternative investment capabilities to new clients and expand the range of investment solutions it can offer to the US financial advisor channel.

AAM CEO Scott Colyer said his company sees potential in the alternatives space to deliver stable and reliable returns to clients.

“As we looked to diversify and become more entrenched in alternatives, it was crucial to identify a best-in-class partner who shared the same customer-focused and team-oriented culture as ours,” said Mr. Colyer.

The transaction is expected to close in the first half of 2023, subject to regulatory approvals and satisfaction of customary closing conditions.

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