New fund's eligibility includes those with a minimum $25K to invest
Individual Canadian investors are being offered a new opportunity to invest in private equity thanks to a new fund from Sagard.
The Toronto headquartered asset manager has launched its evergreen PE investment fund, Sagard Private Equity Strategies LP, for accredited investors with a minimum $25,000 to invest, and will target long-term annual net returns of 14-18%.
"The universe of private companies is immense – bigger than public companies, in fact – and individual investors have had minimal access to these investment opportunities. On the other hand, institutional investors like pension plans have been allocating significant portions of their portfolios to this asset class for many years, and have realized strong returns," said Paul Desmarais III, Chairman & CEO of Sagard.
With the first closing including $50 million in capital, the new fund offers institutional-calibre capabilities to individuals.
The fund will invest in a diversified portfolio of:
- Secondaries – targeting mature LP portfolios and premium assets
- Co-investments - sourcing deals from top-performing managers, focusing on small/mid-market companies
- Primaries - selectively investing with high-quality growth equity and small/mid-market buyout managers
"The Fund is managed by a team with decades of experience and a track record of performance. They have significantly outperformed the benchmark over a 5-, 10- and 15-year horizon," said Jonathan Tetrault, CEO of Sagard Private Equity Solutions.
Sagard Private Equity Strategies LP will be eligible for registered plans including RRSPs, TFSAs, and RESPs, and quarterly redemptions will be available subject to certain conditions.
"Following the launch of Sagard Private Credit Fund last fall, we are proud to now bring private equity to accredited investors in Canada,'' Desmarais added. "This new fund underscores our strong commitment to bring alternatives to a broader segment of investors."
