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Private Equity

Sagard launches its first private equity fund for retail investors

The evergreen vehicle targets accredited Canadian investors, seeking a return of 14% to 18%.

Sagard is the latest alternative manager tapping into the gold mine of retail investors with a new fund launch.

The Montreal-based firm has launched Sagard Private Equity Strategies, structured as an evergreen vehicle focusing on receiving capital commitments from Canadian accredited investors with a minimum investment of C$25,000 ($17,400).

The fund aims for annual net returns of 14%-18%, with a portfolio consisting of secondaries, co-investments and primaries. The firm expects an initial close with C$50 million in capital.

Evergreen fund structures have emerged as a solution for private equity managers to secure capital amid a sluggish fundraising environment. They also enable investment managers to tap into an alternative source of capital through the retail market.

“Evergreen or retail funds allow certain investors to subscribe or exit on a more regular basis,” said Sean Collins, investment management research manager at Deloitte.

“We have seen more GPs interested in launching evergreen funds, which expand the investor type from institutional to ultra-high-net-worth individuals (UHNWIs), offer continuous capital inflows and permit more frequent investor redemptions.”

Sagard joins other large asset managers, including BlackRock, Partners Group and Apollo, betting on private wealth.

In November, Apollo highlighted the retail channel as one of its strategic growth drivers and its initiative to simplify products to meet the demands of qualified and non-qualified investors.

Meanwhile, BlackRock and Partners Group have collaborated to form a private wealth offering that consists of a multi-private market model providing wealthy individuals exposure to several asset classes, including private equity, private credit and real assets.

Featured image by Anand Purohit/Getty Images

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  • Janelle Bradley
    Janelle Bradley is a New York-based private equity reporter covering leveraged buyouts for PitchBook News. Previously, she covered private credit at With Intelligence (formerly Pageant Media). Janelle is a graduate of the City University of New York Brooklyn College.
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