Sagard Private Equity Canada’s inaugural mid-market private equity fund has held an initial closing, raising C$200 million. The fund, which is targeting C$400 million, secured commitments from Canada Life, Caisse de dépôt et placement du Québec, Export Development Canada, Investissement Québec, BMO Financial Group and CIBC. Money also came from parent organization Sagard Holdings, a subsidiary of Canadian holding company Power Corp.
Sagard announces first closing of Sagard Private Equity Canada’s inaugural fund
MONTREAL, Nov. 16, 2021 /CNW Telbec/ – Sagard today announced the successful first closing of Sagard Private Equity Canada’s Canadian mid-market private equity fund (“Sagard PE Canada” or the “Fund”) with commitments totaling CA$200 million.
Sagard PE Canada’s mission is to build a private equity franchise that will be recognized as the partner of choice for Canadian mid-market entrepreneurs and management on their quest to become market leaders. The first closing includes participation from Canada Life, Caisse de dépôt et placement du Québec, Export Development Canada, Investissement Québec, BMO Financial Group, CIBC and Sagard Holdings. The Fund is targeting total capital commitments of CA$400 million and remains open for additional commitments.
“Since our launch, we have been focused on filling the clear gap in the Canadian mid-market private equity landscape, and the response to our fundraising efforts has been very positive. As a result, we are well-positioned to create value by leveraging the talent and expertise of our team and the resources of Sagard’s CA$11.1 billion investment platform,” said Marie-Claude Boisvert, Partner and Head of Sagard PE Canada. “We want to thank our anchor LPs for believing in us and for setting us up for success.”
In advance of the Fund’s first closing, Sagard PE Canada announced its first investment on September 8, 2021, with the acquisition of Groupe LOU-TEC Inc. (“LOU-TEC”). Founded in 1979, LOU-TEC is a leader in the rental of heavy machinery, specialized equipment and tools used in construction, renovation and maintenance of commercial, industrial, institutional and residential buildings.
“We are thrilled to announce the first closing of Sagard Private Equity Canada’s mid-market fund. We are proud to support Marie-Claude Boisvert — one of the few women in Canada to launch and lead a private equity fund — and her amazing team,” said Paul Desmarais III, Chairman and CEO of Sagard.
“Today’s announcement is evidence that the Sagard PE Canada approach, with its dynamic and rigorous investment process, is working. Our team is demonstrably accelerating the performance of the companies with which we partner, and we look forward to building on the momentum and announcing new strategic investments in due course,” said Adam Vigna, Managing Partner and Chief Investment Officer of Sagard.
“With this investment, we support the creation of a new fund that will target the expansion of local SMEs. A complement to CDPQ’s efforts with Québec mid-caps, this fund will help expand the number of companies we work with and allow them to achieve their growth objectives,” said Mario Therrien, Head of Investment Funds and External Management at CDPQ.
“Sagard’s Canadian mid-market private equity fund will invest in growing medium-sized businesses,” said Carl Burlock, Executive Vice-President and Chief Business Officer at EDC. “There are many opportunities for mid-sized Canadian companies to grow internationally. We are pleased to collaborate with Sagard PE Canada to support the creation of global market leaders in Canada.”
“Investissement Québec, along with its experienced financial partners, is proud to empower Québec’s players who stand out in their sector to become international leaders. By supporting their growth projects, we are helping to promote our expertise both here and abroad, while fostering Québec’s economic development,” said Guy LeBlanc, President and Chief Executive Officer, Investissement Québec.
Sagard is a multi-strategy alternative asset manager with more than CA$11 billion under management and professionals located in Canada, the U.S., Europe and Asia. Sagard seeks to generate 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 MidCap, Sagard NewGen), private credit (Sagard Credit Partners), royalties (Sagard Healthcare Royalty Partners), and venture capital (Portage Ventures and our ecosystem partner, Diagram Ventures).
About Sagard PE Canada
Sagard PE Canada focuses on Canadian mid-market opportunities to help companies and their management team accelerate their growth trajectory in order to become Canadian champions and market leaders. With offices in Montreal and Toronto, Sagard PE Canada concentrates on less cyclical sectors such as financial services, manufacturing and other services in which the team has deep industry knowledge. Sagard PE Canada has an active pipeline bolstered by the broader Sagard ecosystem, a disciplined and focused screening approach, a data-driven investing thesis, and a proven due diligence process. Driven by a structured approach to value creation, Sagard PE Canada generates value through organic growth, M&A, profitability and cash flow enhancement, talent and expertise, and disciplined monitoring. This strategy is underpinned by a shared vision and an experienced management team.