Sun Life Financial Inc., the Canadian financial services and life insurance company, has revealed plans to acquire a majority stake in global alternative credit investment manager Crescent Capital Group LP.
Headquartered in Los Angeles with offices in New York, Boston and London, Crescent has more than 180 partners and employees and approximately US $28 billion in assets under management.
Following the acquisition, Crescent will form part of SLC Management, Sun Life’s alternatives asset management business.
Sun Life says the move will extend SLC Management’s solutions in alternative credit, which will benefit existing and prospective clients.
The life insurer will acquire a 51% interest in Crescent for up to $338 million, consisting of an upfront payment of $276 million and a future payment of up to $62 million.
As part of the transaction, Crescent’s equity holders will retain carried interests in existing funds along with certain assets and their respective economics.
Additionally, Crescent will continue to operate independently under its current leadership and will retain its brand, office locations and clients.
“We’re excited that Crescent will be joining SLC Management,” said Steve Peacher, President, SLC Management.
“Crescent has an excellent track record in alternative credit investing and an exceptional reputation in the industry,” he added. “SLC Management and Crescent share a common vision based on delivering outstanding performance for our investors.”
Mark Attanasio, Co-Founder and Managing Partner of Crescent, also 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, further stated: “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.”
Moelis & Company LLC and Sullivan & Cromwell LLP acted as exclusive financial advisor and legal counsel respectively to Crescent during this transaction, while Skadden, Arps, Slate, Meagher & Flom LLP served as Sun Life’s legal counsel and Berkshire Global Advisors LP served as its financial advisors.