By Kimberly Chin
Sun Life Financial Inc. plans to acquire a majority stake in investment manager Crescent Capital Group LP for roughly $338 million, a move that will help expand the financial service company's alternative credit offerings.
Sun Life said it will acquire a 51% interest in Crescent. It will make an upfront payment of $276 million and plans to pay up to $62 million if certain milestones are met.
Crescent will form a part of Sun Life's alternatives asset management business, SLC Management, the company said.
Crescent's equity holders will still have carried interests in existing funds as well as certain assets, Sun Life said. The deal also has a put or call option that will allow for the transfer of remaining interests in about five years from the transaction's closing, the company said.
Sun Life has co-invested up to $750 million in Crescent's investment strategies and new product launches, the company said.
The investment manager will continue to operate independently under its current leadership.
The Los Angeles-based Crescent, which was founded in 1991, invests in mezzanine debt, U.S. and European middle market direct lending, high yield bonds and syndicated loans. It has about $28 billion in assets under management as of June 30, according to its website.
The deal is expected to close later this year.
Write to Kimberly Chin at email@example.com
(END) Dow Jones Newswires