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Lightyear Capital leads race to buy SunTrust’s asset management unit

3 May 2013

new york 7_sqLightyear Capital has reportedly emerged as the lead bidder for SunTrust Banks’ asset management business RidgeWorth Investments, which has also drawn interest from two other private equity firms.

Other suitors for RidgeWorth are Crestview Partners and Thoma Bravo, said Reuters, citing sources familiar with the situation.

New York-based Lightyear, which is focused on the financial services sector, will likely pay $250m to $300m for the company, said one of the sources.

Suntrust was in talks to sell the unit to Henderson Group for what was reported to be between $300m and $400m three years ago, 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, said the sources.

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 has recently closed its controlling investment in insurance and reinsurance brokers Cooper Gay Swett & Crawford.

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