Insurer books $236 million hit as asset management arm expands real estate and private credit reach
Sun Life is taking full ownership of two alternative managers that have lifted fee revenue, earnings and AUM since 2021.
Sun Life Financial Inc. has completed the acquisition of the remaining equity interests in BGO and Crescent Capital Group that it did not already own.
Before the deal, Sun Life already held majority stakes in both firms.
According to Sun Life, the insurer paid $1.59bn for the remaining 44 percent interest in BGO and $829m for the remaining 49 percent stake in Crescent.
The press release said the payments settle the outstanding put liability on Sun Life’s financial statements and were funded through debt issuances in 2025 in anticipation of the transactions.
The transactions will result in an approximate $236m charge to Sun Life’s Q1 2026 reported net income and a net reduction in equity of $85m as of March 31.
Reuters also reported that the company said the deals will lead to a roughly $236m charge to first‑quarter reported net income.
Sun Life said additional shares are expected to be repurchased in connection with the transactions under Toronto Stock Exchange rules for non‑independent plans, and that this will have no impact on earnings per share.
Between 2021 and 2025, BGO and Crescent generated a combined $4.2bn in fee related revenue, 90 percent growth in EBITDA and growth in assets under management from $115bn to $165bn for Sun Life and SLC Management, according to the press release.
Sun Life said SLC Management now manages $260bn of third‑party assets for more than 1,400 institutional Clients globally and $165bn of Sun Life’s general account assets, with capabilities across real estate, private credit, private fixed income and infrastructure.
According to Sun Life, it formed BGO in July 2019 through the merger of Bentall Kennedy with global real estate investment firm GreenOak, contributing its Bentall Kennedy interest valued at $482m and investing $195m in cash to acquire a 56 percent majority stake.
The insurer acquired a 51 percent stake in Crescent in January 2021 for $450m.
Reuters reports that Sun Life owned a majority interest in each company before the latest buy‑ups.
As part of the final purchase and go‑forward operating model, SLC Management introduced a Management Equity Plan that allows eligible employees to collectively own up to 25 percent of the business, according to the press release.
BGO founders and BGO and Crescent leadership invested into the plan by converting a portion of their existing affiliate equity, alongside contributions from eligible employees across SLC’s platform.
Sun Life said the plan is designed to align interests, retain top talent and support long‑term growth.
Steve Peacher, executive chair of SLC Management, said the completion of the BGO and Crescent acquisition “will mark a new era for SLC Management” and forms part of its growth strategy.
