RidgeWorth has more than $50bn in equity and fixed-income assets under management across five wholly-owned boutiques and one minority-owned boutique.
Crestview Partners and Thoma Bravo were previously interested in the business according to a report by Reuters in May.
Suntrust was in talks to sell the unit to Henderson Group three years ago for what was reported to be between $300m and $400m, but the sides failed to agree on a deal.
Earlier this year SunTrust provided updated information about mandates secured by RidgeWorth from institutional investors to private equity firms in hopes to attract a bid, the Reuters sources said.
The report noted that SunTrust was one of the few large US banks whose capital plans were rejected by the Federal Reserve following its stress tests last year.
Lightyear chairman Donald Marron said, “We are thrilled to partner with [CEO and CIO Ashi Parikh] and the team at RidgeWorth to help execute their long-term vision for the company.
“RidgeWorth has built an excellent multi-boutique investment management platform with high-quality infrastructure and distribution.
“This provides an opportunity to add new boutiques and introduce new investment strategies over time.
“We are confident that we can, in conjunction with RidgeWorth management, leverage Lightyear’s considerable experience to accelerate the growth of the company to the benefit of current and future RidgeWorth clients.”
The deal is expected to close in the second quarter of 2014.
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