Sun Life Financial Inc. has advanced its asset management strategy through a series of transactions and structural changes, including the full acquisition of its remaining stakes in BGO and Crescent Capital Group, the launch of an employee ownership plan within SLC Management, and a planned purchase of US-based Bell Partners.
Sun Life paid $1.59 billion (US$1.16 billion) for the remaining 44% stake in BGO, its global real estate investment management arm, and $829 million (US$608 million) for the outstanding 49% interest in Crescent Capital Group, its alternative credit investment manager. Both payments were funded through debt issuances in 2025.
Between 2021 and 2025, the two firms generated a combined $4.2 billion in fee-related revenue, achieved 90% growth in EBITDA, and increased assets under management (AUM) from $115 billion to $165 billion. The transactions are expected to result in a charge of approximately $236 million to Sun Life’s first-quarter 2026 reported net income.
Kevin Strain, president and CEO of Sun Life, said the two firms are central to the company’s strategy.
“BGO and Crescent are industry-leading businesses and integral to our strategy for Sun Life Asset Management,” Strain said. “The completion of our BGO and Crescent buy-ups reflects our confidence in their leadership, performance, and long-term growth.”
As part of the transaction structure, SLC Management launched a Management Equity Plan (MEP), allowing eligible employees to collectively own up to 25% of the business. BGO founders and Crescent leadership converted portions of their existing affiliate equity into the MEP, alongside contributions from other eligible employees.
Steve Peacher, executive chair of SLC Management, described the completed acquisitions as the start of a new chapter for the firm.
“The completion of the acquisition of BGO and Crescent marks a new era for SLC Management and represents a significant step forward in delivering on our growth strategy,” Peacher said. “We’re thrilled to have Sonny Kalsi, co-founder of BGO, officially at the helm of SLC Management as we continue to elevate our overall market position.”
Peacher outlined medium-term targets for SLC, including a 15% growth rate for third-party AUM, a 35% fee-related margin, and a 20% growth rate for fee-related earnings.
In a separate transaction, Sun Life said it intends to fully acquire Bell Partners, a US-based multifamily real estate investment manager, for US$350 million, with at least 75% payable in Sun Life common shares.
Founded in 1976, Bell Partners manages approximately US$10 billion in gross asset value and operates close to 70,000 apartment homes across 12 US regions. Upon closing, it is expected to serve as BGO’s US multifamily platform while retaining its current leadership and branding. The deal is expected to close in the second half of 2026, pending regulatory and Toronto Stock Exchange approvals.
Kalsi, serving as president and CEO of SLC Management, said the acquisition positions BGO among the leading US multifamily investment managers.
“The US multifamily market is a tremendous opportunity for targeted growth for BGO,” Kalsi said. “The acquisition of Bell Partners broadens BGO’s strategic benefits and gives us vertically integrated property management capabilities.”
Sun Life said the deal is expected to be accretive to underlying earnings per share in 2026 on an annualized basis.
Also on Monday, Sun Life released an updated Supplementary Information Package (SIP) for investors and analysts, aligning with financial disclosure changes tied to the formation of the Sun Life Asset Management business group. Materials related to the updated financial information template and the newly announced MEP for SLC Management are available on the company’s investor relations webpage.
As of Dec. 31, 2025, SLC Management managed $260 billion in third-party assets for more than 1,400 institutional clients globally.
