Sun Life’s $338 Million Acquisition of Majority Stake in Crescent Capital Group

Sullivan & Cromwell LLP acted as legal counsel to Crescent, while Skadden, Arps, Slate, Meagher & Flom LLP served as Sun Life’s legal counsel in the transaction.

Sun Life Financial Inc. announced it intends to acquire a majority stake in Crescent Capital Group LP (“Crescent”), a global alternative credit investment manager. 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.

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.

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. Headquartered in Los Angeles with offices in New York, Boston and London, Crescent has approximately US$28 billion in Assets under Management.

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.

The Skadden team advising Sun Life included Financial Institutions M&A partner David Hepp (New York; Picture) and counsels Matthew Collin (New York) and Martin Ziessler (New York); Tax partner Edward Gonzalez (New York); Executive Compensation and Benefits partner Erica Schohn (New York) and counsel Linda Barrett (New York); and Labor and Employment Law partner Karen Corman (Los Angeles).

Involved fees earner: Linda Barrett – Simpson Thacher & Bartlett; Matthew Collin – Skadden Arps Slate Meager & Flom; Karen Corman – Skadden Arps Slate Meager & Flom; Edward Gonzalez – Skadden Arps Slate Meager & Flom; David Hepp – Skadden Arps Slate Meager & Flom; Erica Schohn – Skadden Arps Slate Meager & Flom; Martin Ziessler – Skadden Arps Slate Meager & Flom;

Law Firms: Simpson Thacher & Bartlett; Skadden Arps Slate Meager & Flom;

Clients: Sun Life Financial;

Author: Ambrogio Visconti