A firm with close to 30 years experience in
alternative credit investing to join SLC
Management
TORONTO, LOS ANGELES, and WELLESLEY, MA, Oct. 21,
2020 /CNW/ - Sun Life Financial Inc. (TSX: SLF) (NYSE: SLF)
today announced it intends to acquire a majority stake in Crescent
Capital Group LP ("Crescent"), a global alternative credit
investment manager. Crescent has approximately US$28 billion in Assets under Management
(approximately C$38 billion), as of
June 30, 2020. Headquartered in
Los Angeles with offices in
New York, Boston and London, Crescent has more than 180 partners
and employees.
Crescent will form part of SLC Management, Sun Life's
alternatives asset management business. The acquisition will extend
SLC Management's solutions in alternative credit, which will
benefit existing and prospective clients.
This transaction provides Crescent the opportunity to bring Sun
Life's investment capital and SLC Management's relationships
together with Crescent's alternative credit expertise and track
record. This will support the expansion of existing and new,
adjacent strategies for the benefit of both firms' constituencies,
and further enable Crescent to meet the growing needs of its
institutional client base as they allocate more capital to
alternative credit in search of yield.
Sun Life will acquire a 51% interest in Crescent for up to
US$338 million (approximately
C$450 million), consisting of an
upfront payment of US$276 million
(approximately C$370 million) and a
future payment of up to US$62 million
(approximately C$80 million) based on
the achievement of certain milestones. As part of the transaction,
Crescent's equity holders will retain carried interests in existing
funds along with certain assets and their respective economics. The
transaction has a put / call option that will allow the transfer of
remaining interests approximately five years from closing. Crescent
will continue to operate independently under its current leadership
and will retain its distinct brand, office locations and
clients.
Founded in 1991, Crescent is one of the longest tenured credit
managers in the industry and is a leading investor in mezzanine
debt, middle market direct lending in the US and Europe, high-yield bonds and broadly
syndicated loans.
Sun Life has committed to co-invest up to US$750 million (approximately C$1 billion) in Crescent's investment strategies,
supporting the launch of new products and creating alignment with
Crescent's investors.
"We're excited that Crescent will be joining SLC Management.
Crescent has an excellent track record in alternative credit
investing and an exceptional reputation in the industry," said
Steve Peacher, President, SLC
Management. "SLC Management and Crescent share a common vision
based on delivering outstanding performance for our investors."
"This partnership represents the next stage of growth for
Crescent. In getting to know the team at Sun Life and SLC
Management, we feel confident our clients will benefit from the
significant seed capital they are providing, their deep
understanding of the asset management business, and commitment to
Crescent retaining full investment and operational independence of
the firm," said Mark Attanasio,
Co-Founder and Managing Partner of Crescent Capital Group LP.
"With our longstanding investment track record, we look forward
to further building upon our existing alternative credit investment
capabilities, as well as providing clients with new investment
strategies as the demand for yield grows globally among our roster
of leading institutional investors," added Jean-Marc Chapus, Co-Founder and Managing
Partner of Crescent Capital Group LP.
Attanasio and Chapus added, "We have spent considerable time
with Dean Connor and Steve Peacher along with their teams. Together
we believe our firms' complementary cultures will further benefit
our employees, clients, investors, and stakeholders."
"We've been looking to expand our alternative credit
capabilities for some time now, offering our clients a broader,
deeper array of investment solutions across the public and private
credit markets, infrastructure, real estate equity and debt," added
Peacher.
SLC Management, Sun Life and Crescent are signatories of the
Principles of Responsible Investing (PRI) and committed to
sustainable investing practices.
Moelis & Company LLC and Sullivan & Cromwell LLP acted
as exclusive financial advisor and legal counsel respectively to
Crescent. Skadden, Arps, Slate, Meagher & Flom LLP served as
Sun Life's legal counsel and Berkshire Global Advisors LP served as
their financial advisors.
The transaction is expected to close in late 2020, subject to
receipt of regulatory approvals and satisfaction of customary
closing conditions. Crescent currently serves as the investment
adviser of Crescent Capital BDC, Inc. ("Crescent BDC," NASDAQ:
CCAP), a business development company. Upon completion of the
transaction, Crescent is expected to become a majority-owned
subsidiary of SLC Management and, subject to the approval of
Crescent BDC's shareholders, remain the investment adviser of
Crescent BDC.
Slides related to this announcement are available at
www.sunlife.com.
Connect with Sun Life
https://www.facebook.com/SLFCanada
https://www.linkedin.com/company/sun-life-financial
https://twitter.com/SunLifeCA
About Sun Life
Sun Life is a leading international
financial services organization providing insurance, wealth and
asset management solutions to individual and corporate Clients. Sun
Life has operations in a number of markets worldwide, including
Canada, the United States, the United Kingdom, Ireland, Hong
Kong, the Philippines,
Japan, Indonesia, India, China,
Australia, Singapore, Vietnam, Malaysia and Bermuda. As of June 30,
2020, Sun Life had total assets under management of
$1,122 billion. For more information,
please visit www.sunlife.com.
Sun Life Financial Inc. trades on the Toronto (TSX), New
York (NYSE) and Philippine (PSE) stock exchanges under the
ticker symbol SLF.
About SLC Management
SLC Management is a global
institutional asset manager that offers institutional investors
traditional, alternative, and yield-orientated investment solutions
across public and private fixed income markets, as well as global
real estate equity and debt.
SLC Management is the brand name for the institutional asset
management business of Sun Life Financial Inc. ("Sun Life") under
which Sun Life Capital Management (U.S.) LLC in the United States, and Sun Life Capital
Management (Canada) Inc. in
Canada operate.
BentallGreenOak and InfraRed Capital Partners (InfraRed) are
also part of SLC Management. BentallGreenOak and is a leading,
global real estate investment management advisor and a
globally-recognized provider of real estate services. InfraRed is
an international investment manager focused on infrastructure,
managing equity capital in multiple private and listed funds,
primarily for institutional investors across the globe.
As of June 30, 2020, SLC
Management has assets under management of C$262 billion (US$193
billion).
About Crescent Capital Group LP
Crescent is a global
credit investment manager with approximately US$28 billion of assets under management. For
nearly 30 years, the firm has focused on below investment grade
credit through strategies that invest in marketable and
privately-originated debt securities including senior bank loans,
high yield bonds, as well as private senior, unitranche, and junior
debt securities. Crescent is headquartered in Los Angeles with offices in New York, Boston, and London and more than 180 employees globally.
For more information about Crescent, visit www.crescentcap.com.
However, the contents of such website are not and should not be
deemed to be incorporated by reference herein.
About Crescent Capital BDC, Inc.
Crescent BDC is a
business development company that seeks to maximize the total
return of its stockholders in the form of current income and
capital appreciation by providing capital solutions to middle
market companies with sound business fundamentals and strong growth
prospects. Crescent BDC utilizes the extensive experience,
origination capabilities and disciplined investment process of
Crescent. Crescent BDC is externally managed by Crescent Cap
Advisors, LLC, a subsidiary of Crescent. Crescent BDC has elected
to be regulated as a business development company under the
Investment Company Act of 1940. For more information about Crescent
BDC, visit www.crescentbdc.com. However, the contents of such
website are not and should not be deemed to be incorporated by
reference herein.
Forward-looking information
In this news release,
"we", "our" and "us" refer to Sun Life and its subsidiaries and
joint ventures. Certain statements in this news release are
forward-looking, including, but not limited to, statements (i)
relating to our growth strategies and strategic objectives, (ii)
relating to our anticipated acquisition of a majority stake in
Crescent Capital, (iii) that are not historical or that are
predictive in nature or that depend upon or refer to future events
or conditions, and (iv) that include words such as "intends to",
"will", and similar expressions. All such forward-looking
statements are made pursuant to the "safe harbour provisions" of
applicable Canadian securities laws and of the United States
Private Securities Litigation Reform Act of 1995.
The forward-looking statements in this news release represent
our current expectations, estimates and projections regarding
future events as of the time of this news release and are not
historical facts. These forward-looking statements are not a
guarantee of future performance and involve risks and uncertainties
and are based on key factors and assumptions that are difficult to
predict, particularly in light of the ongoing and developing
COVID-19 pandemic and its impact on the global economy and its
uncertain impact on our business, including the assumption that the
transaction will be completed. The forward-looking statements in
this news release do not reflect the potential impact of any
non-recurring or other special items or of any dispositions,
mergers, acquisitions, other business combinations or other
transactions that may be announced or that may occur after the date
of this news release. If any non-recurring or other special item or
any transaction should occur, the financial impact could be complex
and the effect on our operations or results would depend on the
facts particular to such item and we cannot describe the expected
impact in a meaningful way or in the same way we could present
known risks affecting our business. Except as may be required by
Canadian securities laws, we do not undertake any obligation to
update or revise any forward-looking statements contained in this
news release.
Forward-looking statements are presented for the purpose of
assisting investors and others in understanding our expected
financial position and results of operations as at the date of this
news release, as well as our objectives for the transaction,
strategic priorities and business outlook following the
transaction, and in obtaining a better understanding of our
anticipated operating environment following the transaction.
Readers are cautioned that such forward-looking statements may not
be appropriate for other purposes and undue reliance should not be
placed on these forward-looking statements.
The following are transactional risk factors that could have an
adverse effect on the forward-looking statements in this news
release: (1) the ability of the parties to complete the
transaction; (2) failure of the parties to obtain necessary
consents and approvals or to otherwise satisfy the conditions to
the completion of the transaction in a timely manner, or at all;
(3) our ability to realize the financial and strategic benefits of
the transaction; and (4) the impact of the announcement of the
transaction on Sun Life and Crescent Capital. These risks all could
have an impact on Sun Life's business relationships (including with
future and prospective employees, Clients, distributors and
partners) and could have an adverse effect on our current and
future operations, financial conditions and prospects. Other
important risk factors that could cause our actual results to
differ materially from those expressed in or implied by the
forward-looking statements in this news release are listed in the
annual information form of Sun Life Financial Inc. for the year
ended December 31, 2019 under the
heading "Risk Factors" and other regulatory filings of ours filed
or furnished to Canadian and U.S. securities regulators available
at www.sedar.com and www.sec.gov.
Sun Life Media
Relations Contact:
|
Sun Life Investor
Relations Contact:
|
Rajani
Kamath
|
Leigh
Chalmers
|
Associate
Vice-President
|
Senior
Vice-President
|
Corporate
Communications
|
Head of Investor
Relations & Capital Markets
|
t.
416-979-6070
|
t.
647-256-8201
|
Rajani.kamath@sunlife.com
|
Investor.relations@sunlife.com
|
Crescent Capital
Media Relations Contact:
|
Crescent BDC
Investor Relations:
|
Bill
Mendel
|
Daniel
McMahon
|
Owner
|
Vice-President
|
Mendel
Communications
|
Head of Public
Investor Relations
|
t.
212-397-1030
|
t.
212-364-0149
|
bill@mendelcommunications.com
|
Daniel.mcmahon@crescentcap.com
|
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SOURCE Sun Life Financial Inc.