Guardian Capital to acquire U.S. investment manager

Toronto-based Guardian Capital LLC is purchasing Sterling Capital Management LLC from North Carolina-based Truist Financial Corp. in a US$70-million deal that will nearly triple Guardian’s assets under management.

Sterling, headquartered in Charlotte, N.C., was founded in 1970 as an independent investment manager and today manages US$76 billion ($100 billion) in assets for institutions and individual investors. Guardian plans to operate the organization as a standalone entity led by the current management team.

As of Sept. 30, parent company Guardian Capital Group Limited had $56.2 billion in total client assets.

“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 CEO of Guardian, in a release. “Our combined organizations share a strong common culture that prioritizes the interest of our clients and strives towards enriching lives together.”

In March 2023, Guardian closed a $750-million sale of its Worldsource businesses to Lévis, Que.-based Desjardins Group, a key step in focusing the Guardian business exclusively on asset management.

In 2022, Guardian bought a majority stake in Waterloo, Ont.-based private wealth manager Rae & Lipskie Investment Counsel Inc., adding $1 billion in assets under management (AUM). The firm also acquired BNY Mellon Corp.’s Canadian wealth management business in 2021 and renamed it Guardian Partners Inc., adding $5.5 billion in AUM, mostly in the ultra-high-net-worth segment.

Founded in 1962, Guardian has largely focused on institutional clients such as pension funds.

The deal is expected to close in the second quarter of 2024.

Melissa Shin

Melissa is the editorial director of Advisor.ca and leads Newcom Media Inc.’s group of financial publications. She has been with the team since 2011 and been recognized by PMAC and CFA Society Toronto for her reporting. Reach her at mshin@newcom.ca. You may also call or text 416-847-8038 to provide a confidential tip.