Power Corp. unit Sagard on a roll
Sagard Credit Partners, a fund launched by a subsidiary of Power Corp. last December, has surpassed its target size of US$500 million before the end of its first year.
With commitments of US$545 million so far, a hard cap of US$600 million by the end of 2018 has now been set for Sagard Holdings’ Sagard Credit Partners, which provides credit capital to public and private mid-market companies in Canada and the United States.
Sagard Holdings and the Healthcare of Ontario Pension Plan (HOOPP) anchored initial investments in the new fund, with subsequent commitments coming from pension plans, investment managers, insurers, foundations, and family offices, including the Civil Service Superannuation Board of Manitoba, and the Investment Management Corp. of Ontario.
“We are thrilled by Sagard Credit Partners’ continued success in raising capital from leading institutions in Canada and internationally,” said Adam Vigna, managing partner and chief investment officer of both Sagard Holdings and the credit fund. “This additional capital will support SCP as we execute our strategy of providing flexible, transformative financing to companies with strong fundamentals.”
Sagard Credit Partners has done five transactions in Canada and the U.S. since its launch at the end of last year, most recently leading a $250-million financing for Toronto-based Just Energy Group.
Paul Desmarais III, executive chair of Sagard Holdings and senior vice-president of Power Corp., said the financial commitments to the credit fund have created one of the largest funds of its type in Canada.
This “validates Sagard Holdings’ strategy of attracting world-class teams and building businesses with them,” he said in a statement. “We look forward to delivering on our commitment to investors while bringing creative financing solutions to companies across North America.”
When the Sagard Credit Partners fund was launched, Vigna, who spent nearly eight years at the Canada Pension Plan Investment Board before joining Sagard a couple of years ago, said the appeal to institutional investors would include potential returns from a combination of traditional interest payments and fees, as well as an equity component such as warrants.
It was anticipated that the fund would post annualized returns of 10 to 12 per cent.