Following the recent launch of its inaugural credit fund for accredited investors, Sagard aims to broaden access to another alternative asset class
TORONTO, Jan. 16, 2025 /CNW/ - Sagard, a global alternative asset manager with over US$27B of assets under management, announced today that Sagard Private Equity Strategies LP ("the Fund"), its evergreen private equity investment fund designed for Canadian accredited investors, is now available for subscription. The Fund, whose first closing will include C$50 million in initial capital, will target long-term annual net returns of 14-18%1,2.
Sagard will bring institutional-caliber capabilities to accredited investors looking to participate in private equity. This asset class aims to offer attractive returns, diversification and exposure to a broad universe of private companies. The Fund will provide a comprehensive private equity solution, investing in a diversified portfolio of secondaries, co-investments, and primaries.
"The universe of private companies is immense – bigger than public companies, in fact – and individual investors have had minimal access to these investment opportunities. On the other hand, institutional investors like pension plans have been allocating significant portions of their portfolios to this asset class for many years, and have realized strong returns," said Paul Desmarais III, Chairman & CEO of Sagard.
"Private equity offers an opportunity for attractive returns, and we believe our Fund can provide diversification through exposure to many high-quality middle market managers and companies. An allocation to this asset class can be a great complement for potential additional upside in a diversified portfolio", he added.
In the secondaries space, the Fund will target mature LP portfolios and premium assets, while in co-investments, it will source deals from top-performing managers, focusing on small/mid-market companies. In primaries, the team will selectively invest with high-quality growth equity and small/mid-market buyout managers.
"The Fund is managed by a team3 with decades of experience and a track record of performance. They have significantly outperformed the benchmark over a 5-, 10- and 15-year horizon4," said Jonathan Tetrault, CEO of Sagard Private Equity Solutions – the group managing the Fund.
Eligible accredited investors can subscribe to the Sagard Private Equity Strategies Fund 2 through their investment advisors every month, with quarterly redemptions available subject to certain conditions.5 It will be eligible for registered plans (RRSPs, TFSAs, RESPs, and more). Early investors will benefit from discounted fees, and the minimum investment threshold has been set at C$25,000.
"Following the launch of Sagard Private Credit Fund last fall, we are proud to now bring private equity to accredited investors in Canada,'' Paul Desmarais III added. "This new fund underscores our strong commitment to bring alternatives to a broader segment of investors."
For more information, visit www.sagard.com/SPESF or email us at [email protected].
About Sagard
Sagard is a global multi-strategy alternative asset management firm with US$27B under management, 150 portfolio companies, and 400 professionals. We invest in venture capital, private equity, private credit, and real estate. We deliver flexible capital, an entrepreneurial culture, and a global network of investors, commercial partners, advisors, and value-creation experts. Our firm has offices in Canada, the United States, Europe and the Middle East.
For more information, visit www.sagard.com or follow us on LinkedIn @Sagard
1The Fund's investment objective and target return are not guaranteed. Target returns do not consider the potential impact of economic, market, or exchange rate changes, which may affect the Fund's performance. Therefore, target returns are illustrative and have limitations. They are based on assumptions and current market conditions. The target returns aim to demonstrate the intended portfolio construction, but do not reflect actual performance, which can be influenced by various uncontrollable risk factors. There can be no assurance that the Fund will achieve its investment objective, target return, or any other objectives. Unlike actual performance, the target return cannot account for the impact that economic, market, and other factors may have on the implementation of an actual investment program. Returns of underlying assets can vary dramatically with market conditions and changes in portfolio allocation. The Fund's ability to achieve the target return is subject to risk factors over which the Fund may have no or limited control. |
2Sagard Private Equity Strategies Fund is managed by iCapital Network Canada Ltd., a registered investment fund manager, and expects to invest substantially all of its assets in Sagard Private Equity Strategies LP. |
3The investment team is composed of members of Performance Equity Management, LLC ("PEM"), the portfolio manager of the Fund, and the investment capabilities and track record are that of PEM. |
4For illustrative purposes only. Data as of 06/30/2024. Refers to the 5-, 10-, and 15-year point-to-point performance of 2005-2023 vintage years for the PEM SMA Current Strategy (Global Venture and Primary funds & Co-Investments of Growth Equity / Small & Mid Market Buyouts). As such, the strategy performance reflects investments made between 1/1/2005 and 12/31/2023 and does not take into account investments held by the accounts during the period that were made prior to 1/1/2005. The sub-asset classes were selected because they are representative of PEM's current investment strategy, but does not represent performance actually obtained by any PEM fund or client account. The benchmark referenced herein is the Cambridge Associates Benchmark of Small Cap Buyout, Mid Cap Buyout, Growth Equity, and Venture Capital; all geographies; Vintage Years 2005-2023. |
5The Fund expects to manage capital flows and deployment efficiently, including through its liquidity sleeve. However, the availability of liquid assets to fulfill redemption requests is uncertain. Private equity investments are highly illiquid and can be affected by broader economic issues, industry cycles, fluctuations in demand, market disruptions, and the availability of capital from lenders or investors. These factors can limit the Fund's ability to buy such interests and restrict its ability to sell them at fair market value in response to economic or financial market changes. Furthermore, some investments made by the Fund may take significant time to liquidate, potentially preventing the Fund from selling or disposing of them at favourable prices or from executing any exit strategy. |
Statements are based on the subjective views and opinions of Sagard and cannot be independently verified. There can be no assurance any returns or yields are achieved or that financial exchange risk is minimized. There can be no assurance any distributions are made to investors. Target returns are hypothetical and do not reflect actual returns to any Sagard client or investors. There can be no assurance that any target returns are achieved. Actual returns may be materially lower. There can be no assurance an investor can redeem from the Sagard Private Equity Strategies Fund. Please refer to the fund's organizational and offering documents for additional details. Targeted investment characteristics may not be indicative of future investment characteristics and there can be no assurance that the Fund will have comparable investment characteristics or that target investment characteristics will be achieved. Like all investments, an investment in the funds advised by Sagard involves significant risks, including loss of the entire investment. Investment products such as the funds advised by Sagard are designed only for sophisticated investors who are able to sustain the loss of their investment. Accordingly, such investment products are not suitable for all investors. The funds advised by Sagard are not subject to the same or similar regulatory requirements as mutual funds or other more regulated collective investment vehicles. This presentation does not constitute or form part of an offer to issue or sell, or of a solicitation of an offer to subscribe or buy any securities, nor does it constitute investment advice or a recommendation. Certain information contained in this presentation constitutes "forward-looking statements." Due to various risks and uncertainties, actual events or results or the actual performance of any Sagard investment may differ materially from those reflected or contemplated in such forward-looking statements.
This document or material (this "document") is directed only to Canadian residents that are "accredited investors" as defined under section 1.1 of National Instrument 45-106 Prospectus Exemptions and "permitted clients" as defined under section 1.1 of National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations. This document is not, and under no circumstance is to be construed as an offering memorandum, an advertisement or a public offering of any securities described herein in any province or territory of Canada (each, a "Canadian Jurisdiction"). Under no circumstances is this document to be construed as an offer to sell securities or the provision of advice in relation to any securities. Any offer or sale of any securities described in this document will be made pursuant to the definitive private placement documents for the securities, which do not include this document. In addition, any offer or sale of, or advice related to, any securities described in this document will be made only by a dealer or adviser registered or relying on an exemption from registration in the applicable Canadian Jurisdiction. No Canadian securities regulatory authority has reviewed or in any way passed upon the information contained in this document or the merits of any securities described in this document, and any representation to the contrary is an offence.
Hypothetical Performance Disclosure. Certain of the returns shown are for illustrative purposes only and do not represent performance that any investor actually attained. Certain of the assumptions have been made for hypothetical purposes and are unlikely to be realized by any single client. Analysis of the hypothetical performance shown should be viewed as only one of many factors and inputs relevant to forming a general opinion or macro view regarding the return and risk profiles of an existing or proposed portfolio, and should not be considered an indicator of the future performance or risk of any existing or future portfolio, or of any future allocation or rebalancing of an existing portfolio. Risk or return profiles of actual portfolio holdings, and the correlations of actual holdings within a portfolio, may be higher or lower than that shown when in a hypothetical portfolio. No representation or warranty is made as to the reasonableness of the assumed portfolio. Hypothetical returns have many inherent limitations and may not reflect the impact that material economic and market factors may have had on the decision-making process if client funds were actually managed in the manner shown for any single client. Actual performance for any single client may differ substantially from the hypothetical performance presented. Funds or investments that were selected for inclusion may have had better performance than funds or investments that were not selected for inclusion. Had such funds or investments been included, the performance shown would be lower. Changes in the assumptions may have a material impact on the hypothetical returns presented, including losses. Cambridge Benchmarks represent median performance of all funds in each respective vintage year. See endnotes for further detail on benchmarks.
SOURCE Sagard
Media Contact: [email protected]
Share this article