- GWL, an existing Sagard shareholder, has also agreed to up its existing minority interest
- Power Corp of Canada will remain the controlling shareholder
- ADQ, BMO, and GWL also agreed to invest capital to drive Sagard’s future growth, including through M&A transactions
ADQ and Bank of Montreal (BMO) have agreed to acquire minority equity stakes in Sagard, the alternative asset investment arm of Power Corp of Canada.
Great-West Lifeco (GWL), an existing Sagard shareholder, has also agreed to increase its existing minority interest. No financial details of the transaction were disclosed.
Sagard, headquartered in Montreal, has C$14.5 billion assets under management. Power Corp will remain the controlling shareholder on closing.
In addition, ADQ, BMO, and GWL have agreed to invest capital to drive Sagard’s future growth, including through M&A transactions. They will also commit capital to Sagard’s existing and future investment strategies, strengthening fundraising potential and accelerating the firm’s ability to launch new products.
The deal is expected to close in the third quarter of 2023 and is subject to regulatory approvals.
“We are thrilled to welcome ADQ and BMO as strategic partners and to strengthen our relationship further with GWL,” said Paul Desmarais III, chairman and CEO of Sagard, in a statement. “These strategic partnerships will significantly accelerate our vision of becoming one of the most respected alternative investment management firms globally. Strategic partner capital enables us to attract high-quality investment teams, launch new investment strategies, and fundraise more rapidly. In addition, this will expand our global network, making us even stronger business partners for our portfolio companies. We’re very excited to unlock this tremendous potential.”
ADQ is an Abu Dhabi-based investment and holding company with a broad portfolio of major enterprises.
BMO Financial Group is the eighth largest bank in North America by assets, with total assets of C$1.25 trillion as of April 30, 2023.