Canada’s Sagard acquires strategic stake in BEX Capital
Canadian alternatives asset manager Sagard has signed a deal to acquire a strategic stake in BEX Capital, a specialised secondaries investment firm.
Sagard is a global asset manager with more than $27bn (£20bn) of assets under management. Its credit business, including its strategic partnership with HalseyPoint, together manage $6bn in assets including $2.8bn under its private credit and senior lending strategies.
However the partnership with BEX Capital, which has more than $2bn in assets under management, marks a significant step in Sagard’s expansion into private equity secondaries.
Read more: Sagard closes first senior lending fund with $741m
BEX Capital will bring its expertise in fund-of-funds secondaries to Sagard’s existing offering in primaries, co-investments, and secondaries within the Sagard Private Equity Solutions platform.
“BEX has built a remarkable franchise in the secondaries market, with a loyal and diversified investor base and a strong track record of performance,” said Paul Desmarais III, chairman and chief executive at Sagard.
“By joining forces, we will enhance our ability to deliver innovative and high-performing secondaries solutions to institutional and private high-net-worth investors worldwide.”
The partnership will enable the creation of a scaled, diversified private equity offering, according to Sagard. This switch in focus to private equity secondaries follows a recent expansion by Sagard deeper into the private credit market.
Sagard has invested in private credit for more than 20 years. But last summer the Canadian alternative asset manager launched a private credit fund for the retail market.
The Sagard Private Credit Fund was formally launched in partnership with fintech platform iCapital, to accept subscriptions from accredited investors in Canada.
An evergreen fund, it will invest alongside institutional investors in a broadly diversified portfolio of private credit investments, composed mainly of private loans originated by Sagard, together with more liquid credit securities.
The fund will focus on the middle market, with target annual returns of nine to 10 per cent.
Read more: Sagard Healthcare closes $250m credit facility
