Canadian Sun Life to Buy U.S. Prime Advisors

Sun Life Investment Management has agreed to purchase Prime Advisors.

The acquisition is part of Sun Life Financial’s strategy to broaden its asset management pillar by expanding and diversifying the capabilities of Sun Life Investment Management, which provides investment services to third parties and manages Sun Life’s general account. The transaction is expected to close in the third quarter. The acquisition will be funded internally with cash and is not material to the results of Sun Life Financial Inc. Terms of the transaction were not disclosed.

Prime will operate as a standalone unit of Sun Life Investment Management after the transaction is completed, retaining its brand and its offices in Redmond, Washington, and Windsor, Connecticut. It will continue under management of its current team, headed by Don McDonald, who will report to Steve Peacher.

Peacher, president of Sun Life Investment Management and chief investment officer of Sun Life Financial, cited Prime Advisors’ customized approach to liability-based investing for insurance companies as a reason for the operational fit. “Prime has a strong team with extensive experience in managing assets and providing investment-related services to institutional investors,” Peacher said in a statement.

Sun Life Investment Management is an institutional investment management arm of Sun Life Financial.

Prime Advisors is an investment advisory firm focused primarily on managing investment-grade bond portfolios for the insurance industry.