Canadian insurer Sun Life announced Wednesday it has agreed to enter in a deal that will make it a majority stakeholder of London-based InfraRed Capital Partners, a global investment manager.
In a press release, the insurer giant disclosed a closing payment of US$390 million with the plan to purchase 80% interest in InfraRed for consideration. As part of the deal, Sun Life agreed to co-invest US$400 million, including general account investments, to support the roll-out of InfraRed’s latest investment solutions.
“We’re excited to acquire a majority position in InfraRed, which further broadens SLC Management’s alternative solutions to now include infrastructure equity,” said Steve Peacher, President of SLC Management, the institutional asset management of Sun Life. “InfraRed is a leader in global infrastructure, investing in both greenfield and brownfield projects, including renewable energy. These investments have historically provided the returns and horizon that institutional clients are seeking.”
Werner von Guionneau, Chief Executive Officer, InfraRed Capital Partners, also added:
“I am delighted to announce this transaction with Sun Life and SLC Management which enables us to drive the growth of our business in the Americas, in particular the renewable energy market. SLC Management and InfraRed have complementary capabilities, a similar culture of prudence and long-termism, and proven track records of delivery.”
Headquartered in London, InfraRed runs as an international investment manager with a focus on infrastructure and real estate. To date, the company operates worldwide with more than 175 partners and staff. As of September 30, 2019, the company is said to be managing approximately US$12 billion in assets under management.
As part of the deal, Sun Life is also set to acquire the remaining equity of InfraRed within five years of closing, which is expected to be completed in the first half of 2020.