Sagard has announced the first close of Sagard Credit Partners III (SCP III), securing more than $1 billion in initial commitments toward the private credit fund’s $2 billion target.
The first close attracted commitments from 16 institutional limited partners, including a significant group of returning investors. The fund represents the third vintage of Sagard Credit Partners’ direct lending strategy for privately owned, mid-market businesses across Canada and the United States.
SCP III will provide directly originated senior secured financing and customized credit solutions to companies that may not be adequately served by traditional lenders. The strategy primarily focuses on non-sponsored borrowers, meaning companies that are not owned or backed by private equity firms.
Sagard Credit Partners seeks to originate investments through long-standing relationships and proprietary sourcing channels. The investment team emphasizes selective underwriting, downside protection and structuring financing around each borrower’s specific operations, growth plans and capital requirements.
The strategy is led by Adam Vigna, co-founder and chief investment officer at Sagard. The senior investment team has worked and invested together for more than 20 years.
Since its inception, Sagard Credit Partners has deployed more than $1.9 billion of capital and completed 29 realizations. Sagard’s broader credit platform has deployed approximately $4.5 billion across its credit strategies since 2016.
SCP III has already begun deploying capital. The fund has invested approximately $135 million across three transactions to date.
The new fund follows Sagard Credit Partners II, which closed with $1.17 billion in commitments in June 2022. SCP II has since deployed 100% of its committed capital across a diversified portfolio of privately owned businesses.
Through SCP III, Sagard plans to continue providing flexible capital to North American mid-market companies while seeking attractive risk-adjusted returns for institutional investors. The fund’s focus on non-sponsored borrowers gives Sagard access to a segment of the private credit market where financing availability often depends on specialized sourcing, lender relationships and the ability to structure complex transactions.
KEY QUOTES:
“SCP III allows us to continue applying a highly selective approach in a market where experience, patience, and structuring discipline matter. We believe this strategy is well positioned to support borrowers while seeking to generate attractive risk-adjusted returns for our limited partners.”
Adam Vigna, Co-Founder and Chief Investment Officer at Sagard
“SCP III strengthens our ability to support mid-market businesses with capital designed around their needs and stage of growth. For borrowers, that means working with a lender that takes the time to understand their business and can stay engaged as their needs evolve. For our limited partners, it means continuing to build a portfolio with the discipline, selectivity, and alignment that have defined the strategy since inception.”
Mustafa Humayun, Partner and Portfolio Manager at Sagard Credit Partners
