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Sun Life Financial To Buy 51% Stake In Crescent Capital For Up To US$338 Mln

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(RTTNews) – Sun Life Financial Inc. (SLF, SLF.TO) agreed to buy a 51% interest in Crescent Capital Group LP for up to US$338 million or about C$450 million.

The deal price consists of an upfront payment of US$276 million or approximately C$370 million and a future payment of up to US$62 million or approximately C$80 million based on the achievement of certain milestones.

As part of the deal, 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.

Crescent has about US$28 billion in Assets under Management or 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.

Sun Life has committed to co-invest up to US$750 million or approximately C$1 billion in Crescent’s investment strategies.

The transaction is expected to close in late 2020.