Sun Life Financial is set to take an 80 per cent stake in investment manager InfraRed Capital Partners.
Headquartered in London, England, InfraRed manages global infrastructure and real estate investments. The transaction includes a closing payment of about $515 million, with InfraRed’s owners maintaining an option to sell their remaining positions in the company to Sun Life four years from closing. Sun Life will maintain the option to call any remaining interest five years from closing.
Once the transaction is complete, InfraRed will become part of SLC Management, Sun Life’s alternatives asset management business. In addition, Sun Life is committing to co-invest about $530 million to support InfraRed in launching new 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, in a press release. “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.”
The transaction is expected to close in the first half of 2020.