CHARLOTTE, N.C., Feb. 2, 2024
/PRNewswire/ -- Guardian Capital Group Limited (Guardian)
(TSX:GCG) (TSX:GCG.A) announced today that it has reached an
agreement under which Guardian's wholly-owned subsidiary Guardian
Capital LLC will acquire Sterling Capital Management LLC (Sterling)
from Truist Financial Corporation (Truist) (NYSE: TFC).
Headquartered in Charlotte, North
Carolina, Sterling traces its origins as an independent
investment manager to 1970. Sterling's rich pedigree has allowed it
to expand a successful business that today has approximately
$76B in assets under management and
advisement. 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 financial terms of the transaction include a payment of
$70MM on closing to purchase 100% of the equity capital of
Sterling, subject to customary purchase price adjustments, and
future earn-out incentives.
"We are thrilled for this new chapter for Sterling Capital and
the opportunities for growth that this transition provides," said
Scott Haenni, CEO of Sterling
Capital. "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."
"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," said George
Mavroudis, President and Chief Executive Officer of
Guardian. "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."
Following the anticipated closing of the transaction in Q2, 2024
(subject to normal consents and approvals for transactions of this
nature), Guardian plans to operate 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.
BofA Securities acted as exclusive financial advisor, and
Davis Polk & Wardwell LLP
provided legal advice to Truist.
About Sterling Capital Management LLC
Sterling Capital
Management LLC, founded in 1970, is an independently-operated
subsidiary of Truist Financial Corporation. As of December 31, 2023, Sterling Capital had over
$76B in assets under management and
advisement. Headquartered in Charlotte, Sterling Capital provides
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. Sterling Capital's six distinct investment teams provide
a full complement of fixed income, concentrated active equity, and
multi-asset solutions. Learn more at sterlingcapital.com.
About Guardian Capital Group Limited
Guardian is a
global investment management company servicing institutional,
retail and private clients through its subsidiaries. As of
September 30, 2023, Guardian had
$42B ($56.2B CAD) of total client assets while managing
a proprietary investment portfolio with a fair market value of
$1B ($1.28B CAD). Founded in 1962, Guardian's
reputation for steady growth, long-term relationships and its core
values of authenticity, integrity, stability and trustworthiness
have been key to its success over six decades. Its Common and Class
A shares are listed on the TSX as GCG and GCG.A, respectively. To
learn more about Guardian, visit www.guardiancapital.com.
About Truist Financial Corporation
Truist Financial
Corporation is a purpose-driven financial services company
committed to inspiring and building better lives and communities.
As a leading U.S. commercial bank, Truist has leading market share
in many of the high-growth markets across the country. Truist
offers a wide range of products and services through our wholesale
and consumer businesses, including consumer and small business
banking, commercial banking, corporate and investment banking,
insurance, wealth management, payments, and specialized lending
businesses. Headquartered in Charlotte,
North Carolina, Truist is a top-10 commercial bank with
total assets of $535B as of
December 31, 2023. Truist Bank,
Member FDIC. Learn more at Truist.com.
Important Information & Disclosures
Investment
advisory services are available through Sterling Capital Management
LLC (SCM), an investment adviser registered with the U.S.
Securities & Exchange Commission and an independently-operated
subsidiary of Truist Financial Corporation. SCM manages customized
investment portfolios, provides asset allocation analysis and
offers other investment-related services to affluent individuals
and businesses. Securities and other investments held in investment
management or investment advisory accounts at SCM are not deposits
or other obligations of Truist Financial Corporation, Truist Bank
or any affiliate, are not guaranteed by Truist Bank or any other
bank, are not insured by the FDIC or any other federal government
agency, and are subject to investment risk, including possible loss
of principal invested. SCM's preliminary assets under advisement
(AUA) differs from our regulatory assets under management for which
we provide continuous and regular investment management services as
disclosed in our ADV. AUA generally refers to non-discretionary
assets for which SCM provides advice or consultation for which SCM
does not have authority to effectuate transactions. Such services
include model portfolios and assets SCM advises as an outsourced
Chief Investment Officer on a non-discretionary basis.
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SOURCE Sterling Capital Management LLC
