Sun Life to buy Infrared Capital for £300m
Canadian insurance giant Sun Life has announced it will buy a majority stake in London-based infrastructure and real estate investment manager Infrared Capital.
Sun Life will buy an 80 per cent stake in Infrared Capital for £300m, with Infrared’s owners retaining the option to sell their remaining stakes to Sun Life four years after the deal completes.
Read more: Arrow Global shares rise following €838m fund raise
Sun Life will also have the option to purchase the remainder of the company, which manages $12bn of equity capital, by 2025.
Under the deal, Infrared will become part of SLC Management, Sun Life’s $171bn (£131bn) alternative asset management business.
SLC Management President Steve Peacher said the deal would broaden the company’s alternative investment solutions to include infrastructure equity.
“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,” said Peacher.
The insurer has also agreed to co-invest $400m to support the launch of new Infrared investment solutions.
“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,” said Infrared chief executive Werner von Guionneau.
“Infrared has grown to become a leading international infrastructure investor. To build on this success, our ambition is to continually evolve so that we maximize the potential of our capabilities and address the exciting market opportunities we see in infrastructure,” he continued.
Read more: Chief executive of digital wealth manager Nutmeg to quit
The transaction is expected to close in the first half of 2020, the companies said.
Skadden, Arps, Slate, Meagher & Flom served as Sun Life’s legal counsel, and Fenchurch Advisory Partners as its financial advisors. Ardea Partners International were Infrared’s financial advisors, and Weil, Gotshal & Manges served as legal counsel.