Sun Life Financial Inc. intends to acquire an 80% interest in infrastructure and real estate investment manager InfraRed Capital Partners for consideration that includes a closing payment of £300 million.
As part of the transaction, Sun Life committed to co-invest US$400 million, including general account investments, to support the launch of new InfraRed investment products.
London-based InfraRed advises institutional and pooled fund clients on approximately US$12 billion in AUM as of Sept. 30. Its owners will have a put option to sell their remaining interest to Sun Life approximately four years from the closing, and Sun Life will have the option to call any remaining interest approximately five years from the closing.
InfraRed will form part of SLC Management, Sun Life's alternatives asset management business. The transaction is expected to close during the first half of 2020, subject to receipt of regulatory approvals and satisfaction of customary closing conditions.
Skadden Arps Slate Meagher & Flom LLP served as Sun Life's legal counsel, and Fenchurch Advisory Partners served as financial advisers. Ardea Partners International LLP acted as financial advisers to InfraRed, and Weil Gotshal & Manges LLP served as its legal counsel.