Sun Life buys out Crescent Capital to expand credit offering

Canadian insurer Sun Life has acquired the remaining equity stake in global alternative credit manager Crescent Capital Group as it looks to expand its expertise in private debt.

The insurer paid C$829m (£450.2m) for the remaining 49 per cent stake in $50bn (£37.9bn) Crescent. It follows Sun Life acquiring a 51 per cent stake in the private credit manager for C$450m in 2021.

The full acquisition of the Crescent also comes as Sun Life has acquired the remaining equity interests in BGO, its global real estate investment management adviser and provider of real estate services.

“BGO and Crescent are industry-leading businesses and integral to our strategy for Sun Life Asset Management,” said Kevin Strain, president and chief executive of Sun Life. “Both companies create enduring value for our clients and stakeholders. Together, they bring decades of real estate and credit expertise and deliver high-quality solutions for clients globally.”

Sun Life said that between 2021 and 2025, BGO and Crescent delivered strong performance for the firm and SLC Management, the insurer’s institutional asset management business. The firms generated a combined C$4.2bn in fee-related revenue, 90 per cent growth in EBITDA and growth in assets under management from C$115bn to C$165bn, the insurer said.

“The completion of the acquisition of BGO and Crescent will mark a new era for SLC Management and represents a significant step forward in delivering on our growth strategy,” said Steve Peacher, executive chair of SLC Management. “These buy-ups will allow SLC Management to harness the power of its platform to drive value for our clients.”

SLC Management today manages C$260bn of third-party assets for more than 1,400 institutional clients globally and C$165bn of Sun Life’s general account assets. Its platform has capabilities across real estate, private credit, private fixed income and infrastructure.