Desmarais-backed Sagard buys stake in U.S. private equity firm, boosting assets under management to $25 billion

financialpost.com:

Sagard, an alternative asset management firm controlled by Quebec’s Desmarais family, is acquiring a strategic stake in Connecticut-based Performance Equity Management, boosting Sagard’s assets under management to more than $25 billion from around $15 billion.

PEM has a two-decade track record that includes managing venture capital and private equity strategies through co-mingled funds and separately managed accounts for institutional clients and wealth management platforms. The transaction brings a “significant expansion” to the scope of Sagard’s activities with co-investing and fund of funds expertise, the firms said.

“PEM has an impressive investment track record, high-quality team and trusted long-term … relationships,” said Paul Desmarais III, Sagard’s chairman and chief executive officer. 

“We look forward to leveraging our complementary capabilities to scale PEM’s existing business and to enter adjacent strategies.” 

PEM’s senior management team is staying on to lead the private equity business, which has more than $8.9 billion in assets under management. The agreement includes a path to Sagard acquiring the remaining equity it doesn’t already own on Dec. 31, 2028.

“Our acquisition of a strategic stake in PEM will enable Sagard to accelerate the development of its product offering to retail networks, wealth management firms and family offices,” Desmarais said. 

Sagard, which has 125 portfolio companies including Wealthsimple, invests in venture capital, private equity, private credit, real estate and royalties through offices in Canada, the United States, Europe and the Middle East.

John Clark, PEM’s president, said Sagard’simpressive growth trajectory since 2016 and its access to a powerful global ecosystem of