Sagard Credit Partners, part of Canadian alternative asset manager Sagard, has closed its second private debt fund focused on the non-sponsor space. Sagard Credit Partners II secured about $1.17 billion, above its $1.1 billion target. Investors included Beneva, BRK Capital, Civil Service Superannuation Board of Manitoba, Desjardins, Great-West Lifeco, HDG, Hewitt Group, HOOPP Capital Partners, IGM Wealth Management, Investment Management Corp of Ontario, Kruger, Mackenzie Financial Corp, Optimum Asset Management and Ville de Montréal.
TORONTO, June 16, 2022 /CNW Telbec/ – Today, Sagard announced the final close of Sagard Credit Partners II (“SCP II” or “the Fund”) at approximately $1.17 billion, surpassing its $1.1 billion target. With new commitments by limited partners from the United States, Canada and Europe, this close marks another milestone for Sagard: SCP II is its largest fund raised to date and one of the largest Canadian-based private lending funds focused on the non-sponsor space.
Commitments come from previous and new institutional and strategic investors, including Beneva, B.R.K. Capital Inc., Civil Service Superannuation Board of Manitoba, Desjardins, Great-West Lifeco Inc. (TSX: GWO), HDG Inc., Hewitt Group Inc., HOOPP Capital Partners, IGM Wealth Management (TSX: IGM), Investment Management Corporation of Ontario, Kruger Inc., Mackenzie Financial Corporation, Optimum Asset Management and Ville de Montréal.
“We are pleased with the strong interest in SCP II. Today’s announcement builds on Sagard’s track record in private debt, providing flexible financing solutions to non-sponsored middle-market companies whose needs cannot be accommodated by traditional banking products,” said Adam Vigna, Chief Investment Officer at Sagard. “The continuing impact of COVID-19 and the economic cycle have made it more difficult to access traditional financing in North America’s middle market. Credit-based solutions are essential in guiding businesses through uncertainty. SCP II will continue to play an important role in helping businesses navigate the challenges presented by the current economic climate.”
Sagard Credit Partners closed its inaugural $557-million Fund (“SCP I”) in December 2018, focused on directly originated loans to underserved segments in North America. SCP I has invested in 15 businesses, with 11 fully realized deals. SCP I has generated $548 million of realized proceeds, representing 79% of all capital invested. SCP II has deployed around 11% of its capital to date.
Allocations to private debt are growing as traditional banks continue to retreat from the lending market for small to medium-sized businesses and market dislocations persist. Since the global financial crisis, private debt funds have more than tripled their assets under management and global private debt AUM is projected to reach $2.69 trillion by 2026.1
“Following the success of SCP I, we believe that SCP II is well-positioned to continue delivering results given its seasoned team, proprietary sourcing network, and access to a broad ecosystem through the Sagard network,” said Paul Desmarais III, Chairman and CEO, Sagard. “We look forward to delivering on our commitment to investors while bringing flexible financing solutions to companies across North America.”
12022 Preqin Global Private Debt Report
Sagard is a multi-strategy alternative asset manager with more than US$14 billion under management and professionals located in Canada, the U.S. and Europe. Sagard seeks attractive investment returns by combining its entrepreneurial and disciplined culture with flexible capital and a unique global network of portfolio companies, limited partners, advisors and other valued relationships. As a firm, Sagard operates platforms that invest across five asset classes: venture capital, private equity, private credit, real estate and healthcare royalties. Through its ecosystem partners, Sagard also engages in private wealth management and new venture creation.