Sun Life Financial Inc. (NYSE: SF) reported its intention to acquire a majority stake in Crescent Capital Group LP. Crescent is a global alternative credit investment manager that has USD 28 Billion worth of Assets under management as of June 30th, 2020 with over 180 partners and employees.
Crescent will form part of SLC Management as Sun Life’s alternatives asset management business. The acquisition will extend SLC Management’s solutions in alternative credit to benefit existing and potential clients. This transaction will provide Crescent the opportunity to unite Sun Life’s investment capital and SLC Management’s connections together, utilizing Crescent’s alternative credit expertise and track record.
Sun Life will acquire 51% interest in Crescent for up to USD 338 Million which will comprise of an immediate payment of USD 276 Million and a future payment of the remaining USD 62 Million. Crescent equity holders will retain carried interests in existing funds, including certain assets.
“We’re excited that Crescent will be joining SLC Management. Crescent has an excellent track record in alternative credit investing and an exceptional reputation in the industry,” said Steve Peacher, President, SLC Management. “SLC Management and Crescent share a common vision based on delivering outstanding performance for our investors.”
“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,” said Mark Attanasio, Co-Founder and Managing Partner of Crescent Capital Group LP.
“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,” added Jean-Marc Chapus, Co-Founder and Managing Partner of Crescent Capital Group LP.
Attanasio and Chapus added, “We have spent considerable time with Dean Connor and Steve Peacher along with their teams. Together we believe our firms’ complementary cultures will further benefit our employees, clients, investors, and stakeholders.”
“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,” added Peacher.