Sun Life Financial on Tuesday announced it has agreed to buy LDI money manager Prime Advisors in a cash deal.
Detailed terms were not disclosed, said Gannon Loftus, Sun Life spokesman.
Prime had $13 billion in assets under management as of May 31, mostly for U.S. insurance companies. The firm will become a stand-alone subsidiary of Sun Life Investment Management, which had C$141 billion ($111 billion) in AUM as of March 31, the latest data available.
Donald McDonald will remain as Prime Advisors' CEO, and the firm will retain its brand and offices in Redmond, Wash., and Windsor, Conn. Prime Advisors had been majority owned by employees, Mr. Loftus said.
The deal is slated to close in the third quarter of 2015, pending regulatory approval.
The manager acquisition is the third announced this year by Sun Life and the second involving a liability-driven investing manager — it closed on its acquisition of LDI firm Ryan Labs Asset Management in the first quarter. Ryan Labs is also a stand-alone subsidiary of Sun Life Investment Management. Sun Life on June 15 said it would buy real estate money manager Bentall Kennedy Group. Ryan Labs added $5.1 billion in AUM; Bentall Kennedy, $27 billion.