Sun Life Investment Management has agreed to purchase Prime Advisors Inc., further expanding the Canadian conglomerate’s institutional investment business in the U.S.
"With its customized approach to liability-based investing for insurance companies, Prime Advisors is a natural fit as we continue to build our Sun Life Investment Management organization," said Steve Peacher, President, Sun Life Investment Management, and Chief Investment Officer, Sun Life Financial.
Canada’s leading insurers have been dipping their toes into the wealth management pond as a way to protect their bottom lines in a low-interest rate environment.
Sun Life’s acquisition of Prime, which is expected to close in third quarter of 2015, adds US$13 billion in assets under management.
The addition of Prime, combined with the recently announced acquisition of Bentall Kennedy and the completed acquisition of Ryan Labs Asset Management takes Sun Life Investment Management's third-party assets under management to a combined C$50 billion in just over a year “and give us an excellent platform for serving institutional clients and expanding our business in the U.S," said Peacher.
"Sun Life shares our understanding of the unique needs of insurance companies and fixed income investors. We look forward to offering our clients additional asset management resources and the added benefits of a global, highly respected financial organization," said Don McDonald, President and Chief Executive Officer of Prime Advisors.
"This is an important next step for our firm as we continue developing our business and serving our clients."
Following completion of the transaction, Prime will operate as a standalone unit of Sun Life Investment Management.