Guardian Capital Group Limited announced that it has agreed that Guardian’s wholly-owned subsidiary, Guardian Capital LLC, will acquire Sterling Capital Management from Truist Financial Corporation. Based in Charlotte, North Carolina, Sterling traces its origins as an independent investment manager to 1970.
Sterling’s pedigree has enabled it to expand a successful business with approximately US$76 billion (C$100 billion) in assets under management and advisement today. And Sterling invests on behalf of a broad range of institutional and individual investors through separate accounts, model portfolios, and commingled vehicles, including mutual funds.
The deal’s financial terms include a payment of $70 million on closing to purchase 100% of the equity capital of Sterling, subject to customary purchase price adjustments and future earn-out incentives.
Following the anticipated closing of the transaction in Q2, 2024 (subject to normal consents and approvals for transactions of this nature), Guardian plans on operating Sterling as a standalone entity, led by the current team of management and senior professionals, providing continuity, stability and continued excellence for Sterling clients.
Cambridge International Partners LLC served as Guardian’s financial advisors, Pryor Cashman LLP provided legal counsel to Guardian, and Cherry Bekaert LLP provide tax advice to Guardian. And BofA Securities acted as exclusive financial advisor, and Davis Polk & Wardwell LLP provided legal advice to Truist.
KEY QUOTES:
“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. Sterling’s pursuit of excellence aligns perfectly with Guardian’s commitment to investment quality and innovation. 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. We are extremely grateful that both Sterling and Truist have entrusted Guardian as their partner of choice to build on the rich traditions of both institutions. Our combined organizations share a strong common culture that prioritizes the interest of our clients and strives towards enriching lives together.”
– George Mavroudis, President and Chief Executive Officer of Guardian
“We are thrilled for this new chapter for Sterling Capital Management and the opportunities for growth that this transition provides. 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. 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.”
– Scott Haenni, CEO of Sterling
