Sun Life Financial, a leading financial services company, has announced the successful completion of its acquisition of a 51% stake in Advisors Asset Management (AAM), a prominent independent retail distribution firm in the US.
Expansion of SLC Management
AAM will now form part of SLC Management, Sun Life’s institutional fixed income and alternatives asset manager, serving as its US retail distribution arm. AAM provides financial advisors with a wide range of solutions and products at wirehouses, registered investment advisors, and independent broker-dealers.
Increased Access to US HNW Market
The acquisition is set to benefit both SLC Management and AAM, with SLC now able to offer its investment strategies to the high-net-worth retail market in the US. AAM, on the other hand, will expand its product portfolio to include commercial real estate, private credit, and infrastructure alternatives.
Assets Under Management
As of December 31, 2022, AAM managed approximately $40.5 billion in assets. With over 270 professionals and 10 offices in 9 US states, AAM is a well-established player in the industry.
Retention of Identity
The acquisition includes a put/call option, allowing Sun Life to acquire the remaining ownership interests of AAM starting in 2028. However, AAM will continue to operate under its current leadership, retaining its individual brand, office locations, and clients.
In conclusion, Sun Life’s acquisition of a majority stake in AAM will allow it to expand its reach in the US and offer a wider range of investment solutions to financial advisors and their clients.