Sun Life will acquire a 51% interest in Crescent with an upfront payment of $276 million and a future payment of $62 million based on achievement of certain milestones, the companies said.
Crescent, which had about $28 billion in assets under management at the end of June, will be a part of Sun Life's asset management unit SLC Management.
Crescent will continue to operate independently under its current leadership, the statement said, adding that Sun Life has committed to co-invest up to $750 million in Crescent's investment strategies.
Reuters had reported in January Sun Life's asset management unit was eyeing its first middle-market private-debt acquisition as it expanded into the higher-yielding investments.
(Reporting by Sabahatjahan Contractor in Bengaluru; Editing by Uttaresh.V)