Truist Financial agrees sale of $76B Sterling Capital to Canadian asset manager

Sterling Capital Management is to be acquired by Canadian global asset manager Guardian Capital Group in a deal worth $70 million.

The Charlotte, North Carolina-based firm, which traces its investment firm routes back more than 50 years, is currently owned by Truist Financial, but will join the growing Canadian firm via its Guardian Capital subsidiary.

The acquisition of Sterling via Guardian’s wholly owned subsidiary Guardian Capital adds significant weight to the Toronto-based TSX-listed firm, with Sterling’s assets under management and advisement of around $76 billion adding to Guardian’s CAD$56.2 billion as of September 30.

The financial terms include a $70 million payment on closing, which is expected to occur in the second quarter, to acquire 100% of the equity capital of Sterling, subject to customary purchase price adjustments, and future earn-out incentives.

“We are very excited to have Sterling join the Guardian group of companies as the acquisition significantly enhances our overall scale as a global asset manager and expands our platform for future growth,” said George Mavroudis, Guardian’s president and CEO. “Sterling shares and complements our approach and values in addition to adding new capabilities and investment strategies that enhance our offering in the United States.”

STANDALONE ENTITY

Guardian plans to operate Sterling as a standalone entity with its current management team and senior professionals maintaining continuity for existing clients.

Sterling has six distinct investment teams providing investment advisory services through mutual funds, separately managed accounts, model portfolios, and other commingled vehicles offered through a variety of intermediary and managed account platforms.

The firm’s CEO, Scott Haenni, says that joining Guardian is a new chapter for the firm and offers potential for growth.

“This path forward is a win-win-win for Sterling Capital, Guardian, and Truist, as it allows Sterling Capital to grow as an independently managed investment management firm poised for continued long-term growth under Guardian’s strategic oversight while continuing to partner with Truist on shared relationships and opportunities,” he said. “We are thankful to have found a like-minded organization in Guardian that shares our culture and values, and we are excited for our future success together.”