skip to main content
Back

Sagard announces $555M raised for its Senior Lending strategy

– 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, real estate, and royalties. We deliver flexible capital, an entrepreneurial culture, and a global network of investors, commercial partners, advisors, and valuecreationexperts. 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.


Legal Disclaimers

By accepting receipt of this document and reviewing the content set forth herein, you acknowledge having read and agreeing with the following terms.

The information contained herein is in summary form for convenience of presentation. It is not complete and it should not be relied upon as such. The information set forth herein was gathered from various sources which Sagard Holdings Manager LP (“Sagard”), the investment manager of Portage Ventures, Sagard Credit Partners, Sagard Senior Lending Partners, Sagard Healthcare Partners and Sagard Private Equity Canada, believes, but has not been able to independently verify and does not guarantee, to be accurate. Sagard makes no representation or warranty, express or implied, as to the accuracy or completeness of the information contained herein. Certain information contained herein has been obtained from published sources and/or prepared by third parties, including but not limited to companies in which Sagard clients have invested, and Sagard has not independently verified such information. In certain cases, such information has not been updated through the date hereof. All information contained herein is subject to revision and the information set forth herein does not purport to be complete.

The attached material is provided to you on the understanding that you will understand and accept its inherent limitations, you will not rely on it in making or recommending any investment decision with respect to any securities that may be issued, and you will use it only for the purpose of discussing with Sagard your preliminary interest in investing in a transaction of the type described herein. Any investment in private markets is subject to various risks; such risks should be carefully considered by prospective investors before they make any investment decision. Each prospective investor should consult its own professional advisors as to legal, tax, accounting, regulatory and related matters before investing.

Investments in any fund sponsored by Sagard have not and will not be recommended or approved by any federal, provincial or state securities commission or regulatory authority. The foregoing authorities have not passed upon the accuracy or determined the adequacy of this summary.

Like all investments, an investment in the Fund involves the risk of loss. Investment products such as the Fund are designed only for sophisticated investors who can sustain the loss of their investment. Accordingly, such investment products are not suitable for all investors. The Fund is not subject to the same or similar regulatory requirements as mutual funds or other more regulated collective investment vehicles.

Sagard is registered as an investment adviser under the U.S. Investment Advisers Act, 1940, as amended. Sagard Holdings Manager (Canada) Inc. is registered as an exempt market dealer in the provinces of British Columbia, Alberta, Manitoba, Ontario, Quebec, and Nova Scotia and will act as the dealer in respect of purchases of interests in funds advised by Sagard Holdings Manager LP in the Canadian provinces in which it is registered. The Ontario Securities Commission is the Principal Regulator of Sagard Holdings Manager (Canada) Inc. Sagard acts as investment manager of Portage Ventures, Sagard Credit Partners, Sagard Senior Lending Partners, Sagard Healthcare Partners, and Sagard Private Equity Canada.

Certain statements and certain of the information contained in these materials represents or is based upon “forward-looking” statements or information based on experience and expectations about these types of investments. The forward-looking statements in these materials include statements with respect to, among other things, projections, forecasts or estimates of cash flows, yields or returns, scenario analyses or proposed or expected portfolio composition and anticipated future events, performance or expectations. For

example, such statements are sometimes indicated by words such as “expects”, “estimates”, “believes”, “forecasts”, “seeks”, “may”, “intends”, “attempts”, “will”, “likely”, “should” or negatives thereof and similar expressions. Forward-looking statements are inherently uncertain and are not guarantees of future performance and are subject to many risks, uncertainties and assumptions that are difficult to predict. Therefore, actual events or results or the actual performance of Portage Ventures, Sagard Credit Partners, Sagard Senior Lending Partners, Sagard Healthcare Partners, and Sagard Private Equity Canada may differ materially from those reflected or contemplated in such forward-looking statements as a result of various factors. No representation or warranty, express or implied, is made as to any forward-looking statements and information and no undue reliance should be placed on such forward-looking statements and information. Sagard has no obligation and does not undertake to revise or update these materials or any forward-looking statements set forth herein, except as required by law. In addition, unless the context otherwise requires, the words “include”, “includes”, “including” and other words of similar import are meant to be illustrative rather than restrictive.

The information in the attached materials reflects the general intentions of Sagard. There can be no assurance that these intentions will not change or be adjusted to reflect the environment in which Sagard will operate. Certain statements in these materials contain prior performance indication. Past performance and historic information is not necessarily indicative of future activities or returns, and there can be no assurance that Sagard will achieve comparable results. Conclusions and opinions do not guarantee any future event or performance. Neither Sagard nor any of its subsidiaries or affiliates are liable for any errors or omissions in the information or for any loss or damage suffered.

The materials contained herein are for information purposes only and do not constitute an offer to sell or a solicitation of an offer to purchase any interest in any investment vehicles managed by Sagard.

No securities commission or regulatory authority in the United States or in any other country has in any way passed upon the merits of an investment in the Fund or the accuracy or adequacy of the information or material contained herein or otherwise. This information is not, and under no circumstances is to be construed as, a prospectus, a public offering, or an offering memorandum as defined under applicable securities legislation. The information contained herein is intended solely for “qualified purchasers” as that term is defined in the U.S. Investment Company Act of 1940 and, in Canada, “accredited investors” within the meaning of applicable securities legislation. Such offer or solicitation shall be made only pursuant to a confidential private placement memorandum or similar document, which qualifies in its entirety the information set forth herein and contains a description of the risks of investing. The attached material is also qualified by reference to any limited partnership agreement or similar document and subscription agreement relating to a Sagard-managed investment vehicle. All of these other documents relating to a Sagard-managed investment vehicle should be reviewed carefully prior to making an investment.

This document, which has been prepared solely for information purposes by Sagard, is confidential and is being provided to you on the express understanding that it will not be reproduced or transmitted by you to third parties without Sagard’s prior written consent. Without limiting the foregoing, you (and your employees and agents) agree that you will keep the information contained herein as provided herewith confidential and agree that you will, and you will cause your directors, partners, officers, employees, professional advisors and representatives, to use such information only for information purposes and for no other purpose and will not divulge any such information to any other party. If you are not the intended recipient of this document, you are hereby notified that the use, circulation, quoting or reproducing of this document is strictly prohibited and may be unlawful.

Additional information is available upon request.
All references to “dollars” or “$” are to U.S. dollars unless otherwise stated.
All information is presented as of unless otherwise stated.
Sagard® and Portage Ventures® are trademarks of Sagard and its affiliates. All rights reserved.

You might also be interested in

Retail investing startup Midas raises $45 million to roll out crypto, mutual fund, and savings account products

News

Retail investing startup Midas raises $45 million to roll out crypto, mutual fund, and savings account products

Sagard Enters Into Exclusive Negotiations With Primelis’ Management and Initiative & Finance To Invest In Primelis

News

Sagard Enters Into Exclusive Negotiations With Primelis’ Management and Initiative & Finance To Invest In Primelis

Sagard and HalseyPoint Asset Management enter into strategic partnership

News

Sagard and HalseyPoint Asset Management enter into strategic partnership

Connect with us

Get in touch
Back To Top