SLC Management, the fixed income and alternatives asset manager of Sun Life Financial, has agreed to acquire a majority stake in Monument, Colorado-based Advisors Asset Management, a provider of solutions to financial advisors, investment advisors and broker-dealers.
According to terms of the deal, Canada’s Sun Life will acquire a 51 percent stake in AAM for $214 million (about C$280 million), subject to customary adjustments with a put/call option to acquire the remaining 49 percent starting in 2028.
As part of the transaction, Sun Life is committing to invest up to $400 million to launch SLC Management alternative products for the US retail market to be distributed by AAM.
When the deal closes, expected in the first half of 2023, AAM will have exclusive rights to market and promote SLC Management’s specified alternative investment products in the US. AAM oversees $41.4 billion in assets as of July 31, 2022. With 10 offices across eight states, it has a team of more than 270 professionals.
“We’re thrilled that AAM will be joining SLC Management,” said Steve Peacher, president of SLC Management, in a statement. “We’ve seen a sustained increase in demand for alternatives from the high-net-worth and ultra-high-net-worth market as they look to add new sources of yield and total return.” Private Debt Investor examined the trend in a March cover story.
Evercore acted as financial advisor to Sun Life for this transaction and Skadden, Arps, Slate, Meagher & Flom served as legal counsel. For AAM, Berkshire Global Advisors acted as financial advisor and Chapman and Cutler acted as legal counsel.
As of 30 June, 2022, Sun Life had total assets under management of C$1.26 trillion, while SLC Management had assets of C$335 billion ($260 billion).