Sun Life taking majority stake in Crescent Capital

Sun Life Financial has announced the signing of an agreement to purchase a majority shareholding in alternative credit investment manager Crescent Capital Group.

Under the terms of the transaction, the buyer will pay up to USD 338.00 million for a 51.0 per cent holding in the company.

The consideration comprises an upfront sum of USD 276.00 million, as well as a USD 62.00 million earnout component, due at a later date, subject to certain unspecified milestones being achieved.

Following completion, the target will continue to operate independently, with its existing leadership team to remain in place, as part of Sun Life’s SLC Management alternatives asset management division.

Closing is expected to occur in late 2020, once the deal has been approved by regulators and customary conditions have been satisfied.

Crescent Capital is headquartered in Los Angeles and has more than 180 partners and employees.

Founded in 1991, the company operates from additional locations in New York, Boston and London and had USD 28.00 billion in assets under management, as of 30th June 2020.

It claims to be one of the longest-tenured credit managers in its field, as well as a leading investor in mezzanine debt.

Sun Life believes the purchase will enable it to combine its investment capital and relationships with Crescent Capital’s alternative credit expertise and track record, thereby offering an improved service to customers.

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The buyer has said it will invest up to USD 750.00 million in the target’s investment strategies in a bid to help it launch new products.

Zephyr, the M&A database published by Bureau van Dijk, shows there have been 2,019 deals targeting providers of credit intermediation and related activities announced worldwide since the beginning of 2020.

The most valuable of these was announced in April, when Ministerstvo Finansov Rossiiskoi Federatsii bought a 52.3 per cent stake in Sberbank Rossii for USD 28.53 billion.

© Zephus Ltd

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