Sagard, a global multi-strategy alternative asset management firm with $14.5bn under management, today (6 July) announced new strategic partnerships with ADQ, an Abu Dhabi-based investment and holding company, and Bank of Montreal (BMO), the eighth largest bank in North America by assets.
As part of this transaction, Sagard has expanded its existing partnership with Great-West Lifeco (GWL), marking "a significant milestone in the firm's development and will position Sagard for continued growth and value creation".
ADQ and BMO have respectively entered into definitive agreements to acquire minority equity stakes in Sagard, and GWL has agreed to increase its existing minority stake.
Under these agreements, ADQ, BMO and GWL have agreed to invest capital to drive Sagard's future growth, including through M&A transactions. On closing, Power Corporation of Canada will remain the controlling shareholder of Sagard.
In addition, the strategic partners have agreed with Sagard to make respective commitments of additional long-term capital to Sagard's existing and future investment strategies, strengthening fundraising potential and accelerating the firm's ability to launch new products.
"We are thrilled to welcome ADQ and BMO as strategic partners and to strengthen our relationship further with GWL," said Paul Desmarais III, chairman and CEO of Sagard. "These strategic partnerships will significantly accelerate our vision of becoming one of the most respected alternative investment management firms globally. Strategic partner capital enables us to attract high-quality investment teams, launch new investment strategies, and fundraise more rapidly. In addition, this will expand our global network, making us even stronger business partners for our portfolio companies. We're very excited to unlock this tremendous potential."
"Our investment in Sagard directly aligns with our strategic vision. This investment underscores our commitment to continuous growth, innovation, and enhanced value creation. Sagard's entrepreneurial ability to mobilize investment talent, launch new differentiated strategies and deliver concrete results has attracted us to partner with them. Their commitment to leveraging their global network to be a value-added partner to ADQ is clear, and we are excited to support their growth going forward." said Murtaza Hussain, chief investment officer, M&A and Alternative Investments at ADQ.
"We are excited to partner with Sagard, given their expertise in alternative asset management. The partnership provides our clients with access to high-quality private market investments as we continue to deliver top-tier bespoke solutions," said Bill Bamber, CEO, BMO Global Asset Management.
"Great-West Lifeco has been a strategic partner of Sagard since 2021 and an investor in Sagard products for many years before that. Today's announcement strengthens our commitment to Sagard's continued growth and will enable Great-West Lifeco to continue to access differentiated alternative assets as part of its global investment strategy," said Raman Srivastava, EVP & chief investment officer at GWL.
The transaction is expected to close during the third quarter of 2023 and is subject to regulatory approvals.
Sagard is a multi-strategy alternative asset management firm with $14.5bn under management, 125 portfolio companies, and 300 professionals.
Established in 2018, ADQ is an Abu Dhabi-based investment and holding company with a broad portfolio of major enterprises. Its investments span key sectors of the UAE's diversified economy including energy and utilities, food and agriculture, healthcare and life sciences, and mobility and logistics, amongst others.
BMO Financial Group is the eighth largest bank in North America by assets, with total assets of $1.25trn as of April 30, 2023. Serving customers for 200 years and counting, BMO is a diverse team of highly engaged employees providing a broad range of personal and commercial banking, wealth management, global markets and investment banking products and services to over 13 million customers across Canada, the United States, and in select markets globally.
Great-West Lifeco is an international financial services holding company with interests in life insurance, health insurance, retirement and investment services, asset management and reinsurance businesses. It operates in Canada, the United States and Europe under the brands Canada Life, Empower, Putnam Investments, and Irish Life.
