Sun Life picks up 80% of InfraRed

Canadian insurer Sun Life Financial has acquired an 80% stake in London-headquartered infrastructure and real estate manager InfraRed Capital Partners.

According to the Financial Times, the deal had been delayed due to uncertainty caused by the UK general election.

Sun Life paid £300m for its stake in the $12bn manager. InfraRed generated an operating profit of £21.5m in 2018.

As part of the deal, Sun Life has committed to co-invest $400m to support the launch of new InfraRed investment offerings. It is understood the focus will be on US renewables.

“We’re excited to acquire a majority position in InfraRed, which further broadens SLC Management’s alternative solutions to now include infrastructure equity,” said Steve Peacher, President, SLC Management. “InfraRed is a leader in global infrastructure investing in both greenfield and brownfield projects, including renewable energy. These investments have historically provided the returns and horizon that institutional clients are seeking.”

Following the deal, InfraRed’s owners have a put option to sell their remaining interest to Sun Life after four years, while Sun Life will have the option to call any remaining interest after five years.

Back in 2017, The Drawdown spoke with InfraRed’s head of risk, technology and fund operations Sarah Gledhill about their recent operational review and the outcomes.

InfraRed spun out of HSBC in 2011.