The Toronto-based firm has acquired a majority stake in Advisors Asset Management and will enable a retail distribution operation
Sun Life has announced a majority stake in a US independent retail distribution firm to enable an expansion of its operations south of the border.
The Toronto-based firm will take a 51% stake in Advisors Asset Management (AAM) through its fixed income and alternatives asset manager SLC Management.
AAM will become the US retail distribution arm of SLC Management with exclusive rights to market and promote specified alternative investment products to the US market.
The deal is valued at approximately C$280 million and Sun Life is committing $400 million to launch SLC Management alternative products for the US retail market.
Steve Peacher, president, SLC Management, explained that the firm has seen a sustained increased in demand for alternatives from the high- and ultra- net worth markets, seeking new sources of yield and total return.
"We've been looking to enter into the retail distribution segment for some time now,” he added. “Adding AAM to our platform allows us to extend our set of world class alternative investment capabilities to new clients and expands the roster of investment solutions that AAM can offer to the US financial advisor market."
Best-in-class
AAM oversees assets of approximately C$55 billion (at July 31, 2022) and has a team of more than 270 professionals across 10 offices in eight states.
The business was founded around 40 years ago and CEO Scott Colyer says he sees significant opportunity to expand in the alternative investments space.
"As we sought to diversify and gain a greater foothold within alternatives, it was crucial to identify a best-in-class partner that shared the same client-focused and team-oriented culture as ours,” he said. “SLC Management's common values and interest in establishing a durable, long-term partnership figured heavily into the decision to join forces with one of the premier alternatives asset managers in the world."
The deal is expected to close in the first half of 2023 subject to regulatory and other matters.
