Advisors Asset Management to become distribution arm for Sun Life

Chicago, Sept. 1 – Sun Life Financial Inc. announced that it is acquiring a majority stake in Advisors Asset Management, Inc. through SLC Management, Sun Life’s institutional fixed income and alternatives asset manager, according to a press release.

Through the majority stake, Advisors Asset Management will become the U.S. retail distribution arm of SLC Management.

AAM provides a range of solutions and products to financial advisers at wirehouses, registered investment advisors and independent broker-dealers.

AAM will have exclusive rights to market and promote SLC Management's specified alternative investment products to the U.S. retail market.

AAM oversees $41.4 billion assets as of July 31, 2022. With 10 offices across eight U.S. states, AAM has a team of more than 270 professionals.

The 51% majority interest acquisition price is $214 million 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 $400 million to launch SLC Management alternative products for the U.S. retail market to be distributed by AAM.

"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," Steve Peacher, president of SLC Management said.

The transaction is expected to close in the first half of 2023, subject to receipt of regulatory approvals and satisfaction of customary closing conditions.

Evercore acted as financial adviser to Sun Life for this transaction and Skadden, Arps, Slate, Meagher & Flom LLP served as legal counsel. For AAM, Berkshire Global Advisors acted as financial adviser and Chapman and Cutler LLP acted as legal counsel.

Sun Life Financial Inc. is a Canadian financial services company based in Toronto.

Advisors Asset Management is based in Monument, Colo.

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