Sagard Raises Private Debt Fund as North American Banks Retreat

A "Bay Street" sign is displayed in the financial district of Toronto, Ontario, Canada, on Friday, Feb. 21, 2020. Toronto-based alternative asset manager Sagard Holdings Manager LP has raised $555 million for its third private debt fund in a bid to take advantage of tightening bank lending conditions in North America.

Photographer: Stephanie Foden/Bloomberg
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Toronto-based alternative asset manager Sagard Holdings Manager LP has raised $555 million for its third private debt fund in a bid to take advantage of tightening bank lending conditions in North America.

The Sagard Senior Lending Partners vehicle is targeting an internal rate of return of around 9%, said Dev Gopalan, partner and portfolio manager at Sagard in an interview. The fund is focused on middle-market companies — mostly in the US and Canada — which aren’t owned by financial sponsors such as private equity firms, so their debt profiles are safer.