Sun Life Financial Inc. says it intends to acquire a 51 per cent interest in Advisors Asset Management Inc. (AAM), an independent U.S. retail distribution firm, for US$214 million (approximately C$280 million). Sun Life has a put/call option to acquire the remaining 49 per cent starting in 2028.
The deal will go through 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 in eight U.S. states
AAM provides a range of products and solutions to financial advisors, registered investment advisors (RIAs) and independent broker-dealers. AAM will have exclusive rights to market and promote SLC Management's alternative investment products to the U.S. retail market. AAM oversees US$41.4 billion (about C$55 billion) in assets as of July 31, 2022. AAM has 10 offices across eight U.S. states and a team of more than 270 professionals.
"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.
