Sagard announces US$555M raised for its Senior Lending strategy

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Feb 08, 2023, 08:30 ET

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 /PRNewswire/ - 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

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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.
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SOURCE Sagard