– Sagard Senior Lending received commitments totalling $315M after its initial closings, additional $240M in a separately managed account with a strategic partner –
Toronto, ON, February 8, 2023 – Sagard today announced the initial closings of Sagard Senior Lending (“SSLP,” the “Fund”) with commitments totalling US$315 million. The Fund is targeting total capital commitments of US$600 million, with a hard cap of US$750 million, and remains open for additional commitments. SSLP raised an additional US$240 million in a separately managed account with a strategic partner.
SSLP’s mission is to build a leading non-sponsor debt franchise, generate compelling risk-adjusted returns, and help entrepreneurs to build and grow their businesses. Focused on the Canadian and U.S. middle market, SSLP intends to target borrowers with $10-50 million of EBITDA.
“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, Partner and Portfolio Manager at Sagard. “Since our launch, we have been focused on investments in the Canadian and U.S. middle market, and the response to our fundraising efforts has been positive,” said Mr. Gopalan.
The initial closings include participation from an investment fund managed by I.G. Investment Management, Ltd., Great-West Lifeco (TSX: GWO), Investment Management Corporation of Ontario (IMCO), and Portland Investment Counsel, among others.
The Fund has already invested in three middle-market companies, committing approximately $100 million in aggregate.
“We are thrilled to announce the initial closings of Sagard’s Senior Lending Fund. We believe that our original thesis still holds; the family- and founder-led business community continues to be underserved in Canada and the U.S. and offers attractive relative value,” said Adam Vigna, Chief Investment Officer at Sagard.
“Today’s announcement continues our drive to be a one-stop partner to middle market entrepreneurs and business leaders delivering capital, culture, and network. Our growth across the credit spectrum is particularly important at a time where we have observed that alternative funding sources such as banks are capital constrained,” said Paul Desmarais III, Chairman and CEO of Sagard.
About Sagard
Sagard is a multi-strategy alternative asset management firm with more than US$13B under management, 125 portfolio companies, and 300 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. Ourdynamicandsupportiveecosystemgivesourpartnerstheadvantage they need to learn, grow and win at every stage. Sagard also engages in private wealth management and new venture creation through its ecosystem partners Grayhawk and Diagram. The firm has offices in Canada, the United States and Europe. For more information, visit staging.sagardholdings.com.
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