Toronto-based Sun Life Financial is to buy Ryan Labs, known by the brand name Ryan Labs Asset Management.
Based in New York City, Ryan Labs specialises in liability-driven investing (LDI) and total-return fixed-income strategies. Ryan Labs has approximately $5.1bn in assets under management for clients across the US.
The transaction is expected to close in the first quarter of 2015 and is not material to the results of Sun Life Financial.
Following completion of the transaction, Ryan Labs, founded in 1988, will operate as a unit of Sun Life Investment Management, which offers investment solutions to liability-based institutional investors.
Sun Life Investment Management launched its third-party business in Canada in 2014, and it said the addition of Ryan Labs will help expand its business in the US.
Ryan Labs will retain its brand name and its headquarters at 500 Fifth Avenue in New York City. Its operations will continue to be managed by its current team, headed by president, Sean McShea.
McShea will report to Steve Peacher, president, Sun Life Investment Management and chief investment officer, Sun Life Financial.
Peacher said the acquisition of Ryan Labs "is a significant first step in building Sun Life Investment Management's third-party business in the US. They have a first-rate track record and share our focus on bringing value for liability-driven investors."
McShea added: "We will benefit from the resources and support of Sun Life as we continue to develop and grow our business."
Berkshire Capital Securities served as financial advisor and Weil, Gotshal & Manges as legal advisor to Sun Life Financial.
Corporate Partners served as financial advisor and Arnold & Porter as legal advisor to Ryan Labs.
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