Sagard collects initial $555m for senior lending vehicle

• Sagard Senior Lending is focused on the Canadian and U.S. middle market
• The fund’s backers include IG Investment Management, Great-West Lifeco, Investment Management Corp of Ontario and Portland Investment Counsel
• Sagard has more than $13 billion under management

Canadian alternative asset manager Sagard has raised $555 million for its senior lending fund. This figure includes $240 million in a separately managed account with an unidentified strategic partner.

The vehicle’s target is $600 million, with a hard cap of $750 million.

Focused on the Canadian and US middle market, Sagard Senior Lending intends to target borrowers with $10 million to $50 million of EBITDA. The fund’s backers include I.G. Investment Management, Great-West Lifeco, Investment Management Corp of Ontario and Portland Investment Counsel.

“We believe that economic headwinds make traditional equity and growth capital options more difficult to achieve. In turn, we have observed that companies – particularly those in the middle market – favour alternative financing sources, such as private debt,” said Dev Gopalan, a partner and portfolio manager at Sagard, in a statement.

The fund has already invested in three middle-market companies, committing approximately $100 million in aggregate.

Sagard, an affiliate of Power Corp of Canada, has more than $13 billion under management, 125 portfolio companies, and 300 professionals. The firm has offices in Canada, the US and Europe.