ADQ, Canada’s Bank of Montreal to acquire minority stakes in Sagard

Abu Dhabi fund ADQ and Canada’s Bank of Montreal (BMO) have agreed to acquire minority equity stakes in Sagard, a global multi-strategy alternative asset management firm with $14.5bn assets under management.

Sagard will expand its existing partnership with Canadian insurance-centred financial holding firm Great-West Lifeco (GWL) as part of the transaction, marking a significant milestone in the firm’s development. The deal positions the asset management firm for continued growth and value creation.

“ADQ and BMO have respectively entered into definitive agreements to acquire minority equity stakes in Sagard, and GWL has agreed to increase its existing minority stake,” Sagard said in a statement without disclosing the value of the transaction.

ADQ, BMO and GWL have agreed to invest capital to drive Sagard’s future growth, including mergers and acquisitions (M&A). Power Corporation of Canada will remain the controlling shareholder of Sagard on the closing of the deal.

“Our investment in Sagard directly aligns with our strategic vision. This investment underscores our commitment to continuous growth, innovation, and enhanced value creation. Sagard’s entrepreneurial ability to mobilise investment talent, launch new differentiated strategies and deliver concrete results has attracted us to partner with them,” said Murtaza Hussain, chief investment officer of M&A and Alternative Investments at ADQ.

“Their commitment to leveraging their global network to be a value-added partner to ADQ is clear, and we are excited to support their growth going forward.”

The transaction is expected to close in the third quarter, subject to regulatory approvals. ADQ, BMO and GWL also agreed to make respective commitments of additional long-term capital to Sagard’s existing and future investment strategies, strengthening fundraising potential and accelerating the firm’s ability to launch new products.

ADQ’s growing portfolio

Meanwhile, ADQ has been consolidating its portfolio, privatising some assets and making strategic acquisitions to build companies that are leaders in their industries locally or regionally since its founding in 2018.

ADQ, estimated by Global SWF to manage $108bn in assets, is one of the most active dealmakers in the Middle East. Earlier this year, the fund and Abu Dhabi-based conglomerate International Holding Company set up an investment group with the backing of US private equity firm General Atlantic. The entity is seeking to become the largest asset manager in the region.

Last April, ADQ acquired shares worth $1.85bn in five publicly traded Egyptian companies, including Commercial International Bank, the country’s biggest private bank, electronic payments provider Fawry, Alexandria Container & Cargo Handling Company, Misr Fertilizers Production Company and Abu Qir Fertilizers & Chemical Industries.

The fund also launched a $300m technology fund in March 2022 with Türkiye Wealth Fund to invest in venture capital funds and opportunities inside Turkey.

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