June 20, 2024. Toronto, Canada – Sagard, a global alternative asset manager with over US$25B of assets under management, today announced it will launch an evergreen credit investment fund designed for accredited investors, the Sagard Private Credit Fund (“the Fund”). Sagard expects that the Fund will be formally launched in partnership with iCapital, a leading global fintech platform focused on alternative investments, and that it will begin accepting subscriptions from accredited investors in the coming months.1
The Fund will leverage Sagard’s origination capabilities to invest alongside institutional investors in a broadly diversified portfolio of private credit investments, composed mainly of private loans originated by Sagard, together with more liquid credit securities.
“The Sagard Private Credit Fund will harness our tenured team’s institutional-calibre credit origination capabilities to give Canadian accredited investors the opportunity to participate in this attractive asset class”, said Adam Vigna, Managing Partner and Chief Investment Officer at Sagard. “Private credit can deliver higher returns with lower volatility than most other fixed-income alternatives, and our team knows this space extremely well, having invested in this asset class for over 20 years. We are thrilled that the Fund will give more individuals access to private credit, which can be a great complement to a diversified portfolio”, he added.
The Fund will provide loans to private middle market companies, receive interest payments on those loans, and distribute the net proceeds to investors in the form of distributions, driving an initial indicative annual net return of 9-10%. Investors will be able to subscribe to the Fund through their investment advisors each month, with quarterly redemptions available. The Fund will be eligible for registered plans, such as RRSPs, RESPs, TFSAs and more.
“At Sagard, we believe in democratizing access to alternatives”, said Paul Desmarais III, Chairman & CEO of Sagard. “Over the last eight years, we have recruited some of the best investment teams in Canada and elsewhere, building our firm to serve leading sophisticated investors: public and corporate pension plans, financial institutions, sovereign wealth funds, and wealthy families. We are now going to offer these capabilities to a much broader category of accredited investors. Until recently, this kind of access has not been possible. We are starting with private credit in Canada, and the plan is to go far beyond that”, he added.
Sagard plans to launch additional investment products for accredited investors in the coming months.
For more information, visit www.sagard.com/SPCF or email us at [email protected].
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About Sagard Credit
Sagard Credit provides bespoke debt solutions to public and private middle-market companies seeking capital in the U.S. and Canada. Sagard’s credit investment platform and its strategic partner, Sagard | HalseyPoint, together manage $6B in assets including $2.8B under its private credit and senior lending strategies and $3.2B under management at Sagard | HalseyPoint in the CLO space as of March 2024. Our investments are tailored to the company’s specific needs, including support for growth, M&A, refinancing, recapitalizations, and other strategic initiatives. Sagard’s credit offering includes investment strategies in opportunistic credit, senior lending, collateralized loan obligations, and private wealth solutions.
About Sagard
Sagard is a global multi-strategy alternative asset management firm with US$25B under management, 150 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. 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.
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 Credit 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.
1The Fund has not been created and is not yet available. The Fund is expected to be managed by iCapital Network Capital Ltd., a registered investment fund manager.
