Sagard Holdings has agreed to acquire EverWest Real Estate Investors and EverWest Advisors, together a Denver, Colorado-based real estate investment management firm. The deal is part of a partnership with EverWest owner Great-West Lifeco, which will invest about $2 billion in EverWest and commit about $500 million to Sagard funds. Sagard said the partnership will help it become a major player in the real estate investment market. Both Sagard and Great-West are affiliates of Power Corp of Canada.
TORONTO, Oct. 7, 2021 /CNW Telbec/ – Sagard Holdings Inc. (“Sagard”) today is pleased to announce a long-term strategic partnership with Great-West Lifeco Inc. (“Lifeco”), subject to satisfaction of certain closing conditions. The transaction will include the acquisition by Sagard of Denver, Colorado-based EverWest Real Estate Investors, LLC and EverWest Advisors LLC (together “EverWest”) from Lifeco. The acquisition of EverWest, a real estate investment management firm with approximately US$3.8 billion in assets under management, will also mark Sagard’s establishment of a real estate investment platform and increased presence in the U.S. market.
The strategic partnership will represent the beginning of the next phase of Sagard’s growth plans to become a global multi-strategy alternative asset manager and a significant player in the real estate investment sector. As part of the transaction, Lifeco will commit to investing approximately US$2 billion (including amounts committed prior to the date hereof) in EverWest investment vehicles to support EverWest’s future growth. In addition, the partnership includes capital commitments of up to a further approximately US$500 million by Lifeco into certain Sagard funds (incremental to its current commitments to certain existing Sagard funds). The transaction will also give Lifeco a minority equity stake in Sagard Holdings Management Inc., a subsidiary of Sagard.
“The expected acquisition of EverWest is key to Sagard’s continued growth. Real estate is a highly scalable asset class, complementary to Sagard’s product base, and attractive to our existing and potential LPs,” said Paul Desmarais III, Chairman and Chief Executive Officer of Sagard. “Strengthening Sagard’s strategic relationship with Lifeco and welcoming them as a shareholder of Sagard Holdings Management Inc. will create further growth opportunities for our business.”
“With its proven and fully integrated capabilities, EverWest will be the foundation of Sagard’s real estate platform and will be well-positioned to capture new growth opportunities emerging from the Sagard ecosystem,” added Jonathan Tétrault, Managing Partner at Sagard.
This new strategic partnership between Sagard and Lifeco is mutually beneficial, meeting Sagard’s objectives of entering the real estate investment sector, increasing its scale and product depth, and providing access to additional strategic capital. In addition, the partnership will give Lifeco a meaningful position in Sagard’s future growth and helps expand its alternatives capabilities.
“This transaction will advance Lifeco’s strategy to further broaden its access to alternative investment options,” said Paul Mahon, President and Chief Executive Officer, Lifeco. “It will provide better access to Sagard’s diversified asset classes, complementing our existing investment teams. This will result in broader, more diversified options for clients and our general account.”
“We believe that both Sagard and EverWest’s complementary capabilities and strong investment track record will be leveraged to develop a range of new strategies providing significant opportunities for growth. “I look forward to collaboratively building upon this vision with the Sagard team,” said Rick Stone, CEO of EverWest.
Sagard is a multi-strategy alternative asset manager with more than US$8 billion under management and professionals located in Canada, the US, Europe and Asia. Sagard seeks attractive investment returns through a combination of flexible capital, entrepreneurial and disciplined culture and a unique global network of portfolio companies, limited partners, advisors and other valued relationships. Today, Sagard invests across four asset classes: private equity (Sagard Private Equity Canada, Sagard Europe, Sagard NewGen), private credit (Sagard Credit Partners), royalties (Sagard Healthcare Royalty Partners), and venture capital (Portage Ventures and our ecosystem partner, Diagram Ventures).