Sagard, a global multi-strategy alternative asset management firm with over US$15B in assets under management, signed a definitive agreement to acquire a strategic stake in Performance Equity Management (PEM), a private equity firm “with over $8.9B in assets under management and two decades of demonstrated success.”
The transaction combines PEM’s private equity fund of funds and co-investment expertise and strong investment track record “with Sagard’s rapidly growing alternative investment offering and global network.”
Sagard’s investment in PEM marks its establishment of “a fund of funds, secondary and co-investment platform.”
The agreement includes a path for Sagard to “acquire all of the remaining equity of PEM on December 31, 2028.”
PEM manages venture capital and private equity strategies “through both commingled funds and Separately Managed Accounts (SMAs) for institutional clients and wealth management platforms.”
John Clark, President of PEM, commented:
“Sagard’s impressive growth trajectory since 2016 and its access to a powerful global ecosystem of partners and shareholders are two key reasons why we are excited to partner with their team. We are confident that our combination will enable significant strategic benefits, while allowing our investment team to continue delivering strong investment results as we have for two decades.”
Paul Desmarais III, Chairman & CEO of Sagard, said:
“PEM has an impressive investment track record, high-quality team, and trusted long-term GP relationships. We look forward to leveraging our complementary capabilities to scale PEM’s existing business and to enter adjacent strategies. 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.”
PEM’s senior management team will “continue to lead its business, including the execution of its successful investment strategy and management of its current commingled fund and SMA programs.”
The transaction is expected to “close during the first quarter of 2024 and is subject to regulatory approvals.”
The transaction will be “funded with cash on hand.”
