Headquartered in Charlotte, NC, Sterling Capital Management traces its origins as an independent investment manager to 1970. Today, the business has approximately $76 billion in assets under management and advisement. The company invests on a 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 $70 million on closing to purchase 100% of the equity capital of Sterling Capital Management, 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,” Scott Haenni, CEO of Sterling Capital Management, said. “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,” George Mavroudis, president and CEO of Guardian Capital Group, said. “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.”
Following the anticipated closing of the transaction in Q2/24 (subject to normal consents and approvals for transactions of this nature), Guardian Capital Group plans to operate Sterling Capital Management as a standalone entity, led by the company’s current team of management and senior professionals.
Cambridge International Partners served as financial advisor to Guardian, while Pryor Cashman provided legal counsel and Cherry Bekaert provide tax advice to the firm. BofA Securities acted as exclusive financial advisor and Davis Polk & Wardwell provided legal advice to Truist.