Sagard Senior Lending received
commitments totalling $315M after its
initial closings, additional $240M in
a separately managed account with a strategic partner
TORONTO, Feb. 8, 2023
/CNW/ - 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 builds on our mission 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 value creation
experts. Our dynamic and supportive ecosystem gives our
partners the advantage 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
www.sagard.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. Sagard
makes no representation or warranty, express or implied, as to the
accuracy or completeness of the information contained
herein.
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.
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.
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. 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.
All references to "dollars" or "$" are to U.S. dollars
unless otherwise stated.
All information is presented as of publication date unless
otherwise stated.
Sagard® and Portage
Ventures® are trademarks of Sagard and its affiliates. All rights
reserved.
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SOURCE Sagard