Sagard, a prominent global multi-strategy alternative asset management firm, has announced a definitive agreement to acquire a strategic stake in Performance Equity Management (PEM), a well-established private equity firm. This move is set to significantly expand Sagard’s investment capabilities and assets under management, while providing PEM with enhanced opportunities for growth and leveraging Sagard’s extensive global network. The partnership marks Sagard’s entry into the fund of funds, secondary, and co-investment space, solidifying its position as a comprehensive alternative investment platform. The agreement also outlines a path for Sagard to potentially acquire the remaining equity in PEM by December 31, 2028, signaling a long-term commitment to this strategic alliance.
Performance Equity Management brings to the table a robust portfolio encompassing venture capital and private equity strategies. They expertly manage both commingled funds and Separately Managed Accounts (SMAs) catering to a diverse clientele including institutional investors and wealth management platforms. This expertise aligns perfectly with Sagard’s ambition to broaden its reach and product offerings in the alternative investment landscape.
John Clark, President of PEM, highlighted the strategic rationale behind the partnership, stating, “Sagard’s impressive growth trajectory and its access to a powerful global ecosystem were key factors in our decision to partner. We believe this combination will unlock significant strategic advantages, allowing our investment team to maintain our focus on delivering strong investment results, as we have for the past two decades.” This emphasizes the mutual benefits expected from the collaboration, with PEM gaining access to Sagard’s resources and network to further enhance its performance.
Paul Desmarais III, Chairman & CEO of Sagard, echoed this sentiment, emphasizing PEM’s strong track record and experienced team. “PEM boasts an impressive investment history, a high-caliber team, and enduring relationships with top-tier General Partners. We are excited to combine our strengths to scale PEM’s existing business and venture into complementary strategies,” he commented. Desmarais further noted the strategic importance of this acquisition in expanding Sagard’s product offerings to retail networks, wealth management firms, and family offices, broadening the accessibility of sophisticated investment strategies. This strategic investment underscores Sagard’s dedication to becoming a leading name in alternative investment management, offering a comprehensive suite of products to a diverse investor base seeking exposure to Performance Equity Partners.
The existing senior management team at PEM will continue to lead the firm, ensuring continuity in its successful investment strategy and the management of its current fund programs. This stability is crucial for maintaining investor confidence and leveraging PEM’s established expertise in the performance equity partners space.
This partnership represents a significant step in Sagard’s journey to establish itself as a leading global alternative investment management firm. By incorporating fund of funds and co-investment capabilities through PEM, Sagard is substantially expanding its scope of operations. This strategic move enables Sagard to provide its investors with a more diverse range of alternative investment products and access to top-performing managers within the performance equity partners ecosystem.
The transaction, expected to be finalized in the first quarter of 2024, is subject to customary regulatory approvals and will be funded with Sagard’s available cash reserves.
About Performance Equity Management
Performance Equity Management (PEM) is recognized as a premier global, multi-product private equity investment firm. PEM provides clients with access to a wide array of private equity strategies, encompassing venture capital, growth equity, and global small and mid-market buyouts. This access is facilitated through primary fund investments, co-investments, and secondary investments, structured through SMAs, commingled fund of funds, and commingled co-investment funds. Their diverse product range and global reach positions them as a key player in the performance equity partners market.
Headquartered in Greenwich, Connecticut, PEM employs 33 professionals and manages $8.9 billion in Assets Under Management (AUM). The experienced senior team at PEM has a proven track record, having committed over $29 billion to private equity strategies, including $7.5 billion in venture capital and $3.4 billion in over 175 co-investments. This demonstrates their deep expertise and extensive network within the performance equity partners industry.
About Sagard
Sagard is a multi-strategy alternative asset management firm with over US$15 billion in AUM, overseeing 125 portfolio companies with a team of 350 professionals. Their investment focus spans venture capital, private equity, private credit, and real estate. Sagard provides flexible capital, fosters an entrepreneurial culture, and leverages a global network of investors, commercial partners, advisors, and value-creation experts. The firm operates from offices across Canada, the United States, Europe, and the Middle East. This global presence and diverse investment portfolio complement the strategic partnership with performance equity partners like PEM.
Advisors to Transaction
Sagard received legal counsel from Finn Dixon & Herling LLP. Berkshire Global Advisors acted as financial advisor to PEM, and Goodwin Procter LLP served as legal advisor.
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