Sterling Capital deal expands Guardian's position as a global asset manager
TSX-listed global investment management firm Guardian Capital Group Limited has announced a major acquisition of an investment firm in the United States.
The acquisition of Sterling Capital Management LLC via Guardian’s wholly owned subsidiary Guardian Capital LLC adds significant weight to the Toronto-based firm, with Sterling’s assets under management and advisement of around US$76 billion (approx. C$100 billion) adding to Guardian’s C$56.2 billion (as at Sept. 30, 2023).
Sterling has more than 50 years in the industry and is currently owned by Truist Financial Corporation. The financial terms include a US$70 million payment on closing (expected in the second quarter of 2024) to acquire 100% of the equity capital of Sterling, subject to customary purchase price adjustments, and future earn-out incentives.
“We are very excited to have Sterling join the Guardian group of companies as the acquisition significantly enhances our overall scale as a global asset manager and expands our platform for future growth,” said George Mavroudis, Guardian’s president and CEO. “Sterling shares and complements our approach and values in addition to adding new capabilities and investment strategies that enhance our offering in the United States.”
Last year, Guardian Capital Group sold its Worldsource mutual fund, life insurance, and investment distribution networks to Desjardins for $750 million. The deal freed up resources and capital for Guardian to focus on its core asset management operations.
Standalone entity
Guardian plans to operate Sterling as a standalone entity with its current management team and senior professionals maintaining continuity for existing clients.
Sterling is headquartered in Charlotte, North Carolina, and has six distinct investment teams providing investment advisory services through mutual funds, separately managed accounts, model portfolios, and other commingled vehicles offered through a variety of intermediary and managed account platforms.
Scott Haenni, CEO of Sterling, says that joining Guardian is a new chapter for the firm and offers potential for growth.
“This path forward is a win-win-win for Sterling Capital, Guardian, and Truist, as it allows Sterling Capital to grow as an independently managed investment management firm poised for continued long-term growth under Guardian’s strategic oversight while continuing to partner with Truist on shared relationships and opportunities,” he said. “We are thankful to have found a like-minded organization in Guardian that shares our culture and values, and we are excited for our future success together.”
