CPE News (12/16/2020) – Sagard Holdings Inc. has held an initial close for Sagard Credit Partners II (SCP II) with US $650 million in capital commitments.
The first closing includes participation from 10 new and previous limited partners (LPs), including institutional and strategic anchor investor Healthcare of Ontario Pension Plan (HOOP) and a significant sponsor commitment from Sagard Holdings. SCP II is targeting total capital commitments of $1.1 billion with a hard cap of $1.3 billion and remains open for additional commitments through 2021.
Launched in 2017, Sagard Credit Partners invests in proprietary, non-sponsored credit opportunities in Canada and the U.S.
Sagard Credit Partners closed its inaugural $557 million fund in December 2018, focused on directly originated loans to underserved segments in North America. SCP I has provided credit to 10 businesses and is more than 85% deployed.
Sagard Holdings is a multi-strategy alternative asset manager with professionals located in Montreal, Toronto, New York, Paris, San Francisco, and Singapore. Sagard invests across four asset classes: private equity (Sagard Capital and Sagard Capital Partners), private credit (Sagard Credit Partners), royalties (Sagard Healthcare Royalty Partners), and venture capital (Portag3 Ventures and Diagram Ventures).
Sagard Holdings was founded by Power Corporation of Canada (TSX: POW) in 2005 as a complement to its global investment holdings.
photo credit: Sagard Holdings
News Release
Sagard Holdings announces first closing of Sagard Credit Partners II
– Total commitments of US$650-million, exceeding total size of inaugural fund –
TORONTO – Sagard Holdings Inc. (“Sagard”) today announced the successful first closing of Sagard Credit Partners II (“SCP II” or “the Fund”) with commitments totaling approximately US$650-million. Sagard Credit Partners (“SCP”), launched in 2017, invests in proprietary, non-sponsored credit opportunities in Canada and the U.S.
The first closing includes participation from 10 new and previous limited partners, including institutional and strategic anchor investor Healthcare of Ontario Pension Plan (“HOOPP”) and a significant sponsor commitment from Sagard. The Fund is targeting total capital commitments of $1.1-billion with a hard cap of $1.3-billion and remains open for additional commitments through 2021.
“Our team has worked relentlessly to create a private credit vehicle able to compete across North America – one with a long-term outlook that builds deep relationships with the companies in which we invest. Our focus on bespoke debt financing solutions has worked and the response to our fundraising efforts to date have been quite positive,” said Adam Vigna, Managing Partner and Chief Investment Officer of Sagard and SCP.
Sagard Credit Partners closed its inaugural $557-million fund (“SCP I”) in December 2018, focused on directly originated loans to underserved segments in North America. SCP I has provided credit to 10 businesses and is more than 85% deployed.
“We are very pleased to have another opportunity to provide capital to this very high quality group as they launch SCP II. Having worked with them in the past, including on SCP I, we believe that the combination of the SCP team and strategy with the Sagard network is compelling,” said Jim Walker, Head of Private Markets at HOOPP.
Sagard Credit Partners believes that recent market and economic dislocations will result in an expanded and improved opportunity set in private debt in 2021 and beyond. SCP II will be actively sourcing investment opportunities primarily across Canada and the U.S. in healthy businesses seeking liquidity to navigate the current uncertainty.
“We are thrilled with the $650M first close of SCP II. The credit fund is the first product the Sagard Holdings platform launched and has been foundational to our growth as we approach $5-billion of AUM,” said Paul Desmarais III, Chairman and CEO of Sagard Holdings. “This investment strategy, one of the largest of its kind in Canada, brings significant network and sourcing capabilities to the platform, allowing us to enter other areas of the middle market.”
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About Sagard Holdings
Sagard Holdings is a multi-strategy alternative asset manager with professionals located in Montreal, Toronto, Calgary, New York, San Francisco, Paris and Singapore. Sagard looks to generate attractive returns by matching investment opportunities with flexible capital solutions and pairing entrepreneurs with teams that have deep industry knowledge. Sagard develops long-term partnerships and empowers the growth of its investments through a unique global network of portfolio companies, limited partners, advisors and other valued relationships. Today, Sagard invests across four asset classes: private equity, private credit, healthcare royalties, and venture capital.
Sagard Holdings was founded by Power Corporation of Canada in 2005 as a complement to its global investment holdings. For more information about Sagard, visit sagardholdings.com