On December 6, 2023, Sagard, a global alternative asset management firm with over US$15 billion in AUM, entered into a definitive agreement to acquire a strategic equity stake in Performance Equity Management (“PEM”), a private equity firm managing $8.9 billion in assets. The transaction marked Sagard’s formal entry into the fund of funds, secondary, and co-investment space. It was funded with cash on hand and is expected to close in Q1 2024, subject to regulatory approvals. The agreement also provides a pathway for Sagard to acquire full ownership of PEM by December 31, 2028.

This acquisition combined PEM’s two-decade track record in private equity fund of funds and co-investments with Sagard’s expanding alternative investment platform. PEM manages both commingled funds and separately managed accounts for institutional and wealth management clients. Following the deal, PEM’s senior management will remain in place, continuing to lead its investment strategy and operations.

Sagard Chairman & CEO Paul Desmarais III emphasized that the acquisition would accelerate the firm’s distribution to retail networks, wealth managers, and family offices, enhancing product diversification. PEM President John Clark highlighted Sagard’s growth and global ecosystem as key factors in the partnership.

Legal advisors to the transaction included Finn Dixon & Herling LLP for Sagard, while Berkshire Global Advisors acted as financial advisor and Goodwin Procter LLP as legal advisor to PEM. This acquisition further solidified Sagard’s trajectory toward becoming a global leader in alternative investment management.