Duo Bank and CI Financial have also completed acquisitions this week
Consolidation in the wealth management industry and the wider financial services sector is gaining pace.
Following a year of mergers and acquisitions by Canadian firms in 2020, the new year has begun with some deal completions.
Sun Life Financial has expanded the reach of its alternative asset management business SLC Management.
The firm has completed the acquisition of a 51% stake in US-based global alternative credit investment manager Crescent Capital Group, headquartered in Los Angeles but with additional offices in Boston and London.
Crescent will become part of SLC Management and adds approximately US$29 billion in Assets under Management, approximately C$39 billion (as of September 30, 2020). These assets are managed by a team of around 180 partners and employees.
The acquisition will extend SLC Management's solutions in alternative credit, but Crescent will retain its current leadership, individual brand, office locations and clients.
Duo Bank acquires Fairstone
Meanwhile, Toronto-based Duo Bank of Canada announced Tuesday that is has acquired all outstanding shares of Fairstone Financial Holdings Inc., the Montreal-headquartered credit solutions firm.
Duo was supported by Stephen Smith, Centerbridge Partners L.P. and Ontario Teachers' Pension Plan Board; and the deal includes all Fairstone's operations and subsidiaries as well as all the company's approximately 1,400 employees. The Fairstone brand will remain.
"We're pleased to be partnering with the talented team at Fairstone in pursuit of our complementary and aligned strategic growth objectives, including our mutual, community-driven focus on providing Canadians with access to financial solutions that fit their needs," said Trudy Fahie, Chief Executive Officer of Duo Bank.
CI Financial completes RIA deals
Meanwhile, CI Financial completed its acquisition of four US registered investment advisor (RIA) firms.
The latest of a range of deals was announced in November 2020 and marks a significant expansion of the Toronto-based firm’s footprint south of the border and its ambitions to become a globalized firm.
