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Sun Life Bares Acquisition
- By The Financial District
- Sep 2, 2022
- 2 min read
Sun Life Financial Inc. today announced that it intends to acquire a majority stake in Advisors Asset Management, Inc. (AAM), a leading independent U.S. retail distribution firm, through SLC Management, Sun Life’s institutional fixed income and alternatives asset manager.
Photo Insert: AAM will become the U.S. retail distribution arm of SLC Management, Sun Life’s institutional fixed income and alternatives asset manager.
AAM will become the U.S. retail distribution arm of SLC Management. AAM provides a range of solutions and products to financial advisors at wirehouses, registered investment advisors (RIA’s), and independent broker-dealers.
It will have exclusive rights to market and promote SLC Management’s specified alternative investment products to the U.S. retail market.
The company it is buying oversees $41.4 billion (approximately C$55 billion) in assets as of July 31, 2022. With 10 offices across eight U.S. states, AAM has a team of more than 270 professionals.
Sun Life will acquire a 51% interest in AAM for US$214 million (approximately C$280 million) subject to customary adjustments with a put/call option to acquire the remaining 49% starting in 2028.
As part of the transaction, Sun Life is committing to invest up to US$400 million to launch SLC Management alternative products for the U.S. retail market to be distributed by AAM.
“We’re thrilled that AAM will be joining SLC Management,” said Steve Peacher, President, SLC Management.
“We’ve seen a sustained increase in demand for alternatives from the high-net-worth and ultra-high-net-worth market as they look to add new sources of yield and total return. We’ve been looking to enter into the retail distribution segment for some time now. 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 U.S. financial advisor market,” added Peacher.
