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Canada-based insurer Sun Life Financial has completed the acquisition of the remaining stakes in real estate investment manager BGO and alternative credit firm Crescent Capital. The company spent around USD 1.14 billion to acquire a 44% stake in BGO and INR equivalent of USD 829 million for a 49% stake in Crescent. With this, Sun Life now has full ownership of both entities. The move strengthens its position in real estate and alternative investments, although it will lead to a one-time impact of about USD 236 million on its quarterly earnings.
Canada-based Sun Life Financial has completed the acquisition of the remaining ownership stakes in BGO and Crescent Capital that it did not previously hold. The move gives the insurer full control over both investment platforms, strengthening its presence in real estate and alternative credit segments. Advertisement
The company paid approximately USD 1.14 billion to acquire the remaining 44% stake in BGO, a real estate investment management advisor. It also spent around USD 829 million to purchase the remaining 49% stake in Crescent Capital, an alternative credit investment manager. Prior to this transaction, Sun Life already held majority stakes in both firms.
BGO was formed in 2019 following the merger of Bentall Kennedy and GreenOak Real Estate. At the time, Sun Life held a 56% stake in the combined entity, positioning itself as a key player in global real estate investment management. Over the years, BGO has expanded its footprint across major markets, managing a diversified portfolio of real estate assets.
In the case of Crescent Capital, Sun Life initially acquired a 51% stake for USD 450 million in 2021. Crescent focuses on alternative credit investments, including private debt, which has seen growing interest from institutional investors seeking stable returns amid market volatility.
With the latest acquisitions, Sun Life has consolidated its ownership in both platforms, aligning with its broader strategy to expand fee-based earnings and diversify beyond traditional insurance operations. The company has been steadily increasing its exposure to asset management and alternative investments to improve long-term returns.
The insurer has indicated that the transactions will lead to a one-time charge of approximately USD 236 million to its first-quarter reported net income. This impact is largely related to accounting adjustments linked to the buyout of minority stakes.
Source Reuters
5th Jun, 2025
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