Globe & Mail 07:38 AM EDT, 10/22/2020 (MT Newswires) -- Sun Life Financial Inc. (SLF.TO) overnight Wednesday said it intends to acquire a majority stake in Crescent Capital Group LP, a global alternative credit investment manager. Crescent has approximately US$28 billion in Assets under Management (approximately C$38 billion), as of June 30, 2020. Headquartered in Los Angeles with offices in New York, Boston and London, Crescent has more than 180 partners and employees.
Crescent will form part of SLC Management, Sun Life's alternatives asset management business. The acquisition will extend SLC Management's solutions in alternative credit.
Sun Life will acquire a 51% interest in Crescent for up to US$338 million (approximately $450 million), consisting of an upfront payment of US$276 million (approximately $370 million) and a future payment of up to US$62 million (approximately $80 million) based on the achievement of certain milestones. The transaction has a put /call option that will allow the transfer of remaining interests approximately five years from closing. Crescent will continue to operate independently under its current leadership and will retain its distinct brand, office locations and clients.
Sun Life has also committed to co-invest up to US$750 million (approximately $1 billion) in Crescent's investment strategies, supporting the launch of new products and creating alignment with Crescent's investors.
Founded in 1991, Crescent is a leading investor in mezzanine debt, middle market direct lending in the US and Europe, high-yield bonds and broadly syndicated loans.
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