CPE News (10/7/2021) – Sagard Holdings Inc. has announced a long-term strategic partnership with Great-West Lifeco Inc. (TSX: GWO)
The transaction will include the acquisition by Sagard of Denver, Colorado based EverWest Real Estate Investors, LLC and EverWest Advisors LLC from Lifeco. The acquisition of EverWest, a real estate investment management firm with approximately US $3.8 billion in assets under management, will also mark Sagard’s establishment of a real estate investment platform and increased presence in the U.S. market.
Sagard invests across four asset classes: private equity (Sagard Private Equity Canada, Sagard Europe, Sagard NewGen), private credit (Sagard Credit Partners), royalties (Sagard Healthcare Royalty Partners), and venture capital (Portage Ventures and our ecosystem partner, Diagram Ventures).
The strategic partnership will represent the beginning of the next phase of Sagard’s growth plans to become a global multi-strategy alternative asset manager and a significant player in the real estate investment sector.
As part of the transaction, Lifeco will commit to investing approximately US $2 billion (including amounts committed prior to the date hereof) in EverWest investment vehicles to support EverWest’s future growth. In addition, the partnership includes capital commitments of up to a further approximately US $500 million by Lifeco into certain Sagard funds (incremental to its current commitments to certain existing Sagard funds). The transaction will also give Lifeco a minority equity stake in Sagard Holdings Management Inc., a subsidiary of Sagard.
On February 2, 2018, GWL Realty Advisors, Great-West Lifeco’s wholly-owned subsidiary, acquired the business of EverWest. Great-West Lifeco disclosed that the acquisition was not material.
Founded in 2005, Sagard Holdings is wholly owned by Power Corporation of Canada (TSX: POW). Power Corporation, through Power Financial, owns 66.7% controlling interest in Great-West Lifeco Inc.
Percentages denote equity interest as at June 30, 2021, unless otherwise noted.
(1) Canada Life holds a 3.9% interest in IGM Financial (IGM), and IGM holds a 4.0% interest in Great-West Lifeco (Lifeco).
(2) Representing 100% of the voting interests.
(3) Represents a 49.9% non-controlling voting interest. The interest in Northleaf is held through an acquisition vehicle in which IGM holds an 80% equity interest and Lifeco holds a 20% equity interest.
(4) Held through Parjointco, a jointly controlled corporation (50%). Parjointco has a 43.2% voting interest in Groupe Bruxelles Lambert (GBL). Refer to the GBL page of this website for a list of GBL’s investments.
(5) Includes a controlling interest in Portage I, Portage II, Portage III and Wealthsimple, held through Power Financial, Lifeco and IGM.
(6) Refer to the “Alternative Asset Investment Platforms” section of the Corporation’s most recent MD&A for a list of investments held by each investment platform.
(7) IGM also holds a 13.9% interest in China AMC. Power Corporation and IGM hold a combined 27.8% interest in China AMC.
photo credit: Power Corporation, Sagard
News Release
Sagard and Great-West Lifeco Inc. announce a strategic partnership including Sagard’s expected acquisition of real estate investment management firm EverWest
TORONTO, Oct. 7, 2021 /PRNewswire/ – Sagard Holdings Inc. (“Sagard”) today is pleased to announce a long-term strategic partnership with Great-West Lifeco Inc. (“Lifeco”), subject to satisfaction of certain closing conditions. The transaction will include the acquisition by Sagard of Denver, Colorado-based EverWest Real Estate Investors, LLC and EverWest Advisors LLC (together “EverWest”) from Lifeco. The acquisition of EverWest, a real estate investment management firm with approximately US$3.8 billion in assets under management, will also mark Sagard’s establishment of a real estate investment platform and increased presence in the U.S. market.
The strategic partnership will represent the beginning of the next phase of Sagard’s growth plans to become a global multi-strategy alternative asset manager and a significant player in the real estate investment sector. As part of the transaction, Lifeco will commit to investing approximately US$2 billion (including amounts committed prior to the date hereof) in EverWest investment vehicles to support EverWest’s future growth. In addition, the partnership includes capital commitments of up to a further approximately US$500 million by Lifeco into certain Sagard funds (incremental to its current commitments to certain existing Sagard funds). The transaction will also give Lifeco a minority equity stake in Sagard Holdings Management Inc., a subsidiary of Sagard.
“The expected acquisition of EverWest is key to Sagard’s continued growth. Real estate is a highly scalable asset class, complementary to Sagard’s product base, and attractive to our existing and potential LPs,” said Paul Desmarais III, Chairman and Chief Executive Officer of Sagard. “Strengthening Sagard’s strategic relationship with Lifeco and welcoming them as a shareholder of Sagard Holdings Management Inc. will create further growth opportunities for our business.”
“With its proven and fully integrated capabilities, EverWest will be the foundation of Sagard’s real estate platform and will be well-positioned to capture new growth opportunities emerging from the Sagard ecosystem,” added Jonathan Tétrault, Managing Partner at Sagard.
This new strategic partnership between Sagard and Lifeco is mutually beneficial, meeting Sagard’s objectives of entering the real estate investment sector, increasing its scale and product depth, and providing access to additional strategic capital. In addition, the partnership will give Lifeco a meaningful position in Sagard’s future growth and helps expand its alternatives capabilities.
“This transaction will advance Lifeco’s strategy to further broaden its access to alternative investment options,” said Paul Mahon, President and Chief Executive Officer, Lifeco. “It will provide better access to Sagard’s diversified asset classes, complementing our existing investment teams. This will result in broader, more diversified options for clients and our general account.”
“We believe that both Sagard and EverWest’s complementary capabilities and strong investment track record will be leveraged to develop a range of new strategies providing significant opportunities for growth. “I look forward to collaboratively building upon this vision with the Sagard team,” said Rick Stone, CEO of EverWest.
About Sagard
Sagard is a multi-strategy alternative asset manager with more than US$8 billion under management and professionals located in Canada, the US, Europe and Asia. Sagard seeks attractive investment returns through a combination of flexible capital, entrepreneurial and disciplined culture and a unique global network of portfolio companies, limited partners, advisors and other valued relationships. Today, Sagard invests across four asset classes: private equity (Sagard Private Equity Canada, Sagard Europe, Sagard NewGen), private credit (Sagard Credit Partners), royalties (Sagard Healthcare Royalty Partners), and venture capital (Portage Ventures and our ecosystem partner, Diagram Ventures).
About Great-West Lifeco Inc.
Great-West Lifeco Inc. is an international financial services holding company with interests in life insurance, health insurance, retirement and investment services, asset management and reinsurance businesses. We operate in Canada, the United States and Europe under the brands Canada Life, Empower Retirement, Putnam Investments, and Irish Life.
At the end of 2020, our companies had approximately 24,500 employees, 205,000 advisor relationships, and thousands of distribution partners – all serving our more than 30 million customer relationships across these regions. Lifeco and its companies have approximately $2.2 trillion in consolidated assets under administration as of June 30, 2021 and are members of the Power Corporation group of companies. Great-West Lifeco trades on the Toronto (TSX) Stock Exchange under the ticker symbol GWO.
About EverWest
EverWest Real Estate Investors, LLC, is a real estate investment management firm based in Denver, Colorado, with $3.8 billion in assets under management. EverWest applies decades of investment knowledge with one goal in mind: to create significant real estate value and generate superior performance for our investors. Our experienced team of investment professionals is uniquely positioned in markets where we invest. From acquisition, repositioning and development, to management and exit, EverWest is focused on delivering the results investors expect.
Legal Disclaimers
This document is for information purposes only and does not constitute an offering of any security, product, service or fund. This document does not constitute investment advice and may not be used in making any investment decision. This document contains only summary information and no representation or warranty, express or implied, is or will be made in relation to the accuracy or completeness of the information contained herein, by Sagard Holdings Inc. or any of its respective affiliates or funds. Some of the statements contained in this document are, or may be deemed to be, “forward-looking statements”. Forward-looking statements are based on certain assumptions and reflect Sagard’s current expectations. By their nature, forward-looking statements are subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, predictions or conclusions will not prove accurate, that assumptions may not be correct, and that objectives, strategic goals and priorities will not be achieved. The reader is cautioned not to put undue reliance on forward-looking statements.
SOURCE Sagard Holdings Inc.