Power Corp.’s alternative asset management arm, Sagard Holdings Inc., has expanded into the real estate investment sector with the purchase of U.S-based EverWest Real Estate Investors LLC.
On Thursday, Sagard announced the purchase of Colorado-based real estate investment manager EverWest and EverWest Advisors LLC from Great-West Lifeco Inc. , another Power Corp. subsidiary, for an undisclosed amount.
With about US$3.8-billion in assets under management, EverWest marks Sagard’s first foray into real estate and increases its presence in the U.S. market.
In exchange, Great-West Life will get a minority equity stake in Sagard Holdings Management Inc., a subsidiary of Sagard.
“This transaction will advance [Great-West Life’s] strategy to further broaden its access to alternative-investment options,” Great-West Lifeco president and chief executive officer Paul Mahon said in a statement. “The result will be broader, more diversified options for clients.”
Great-West will invest approximately US$2-billion in EverWest investment vehicles to support growth and commit up to about US$500-million into certain Sagard funds.
“Real estate is a highly scalable asset class, complementary to Sagard’s product base, and attractive to our existing and potential [partnerships],” Sagard chairman and CEP Paul Desmarais III said in a statement.
Over the past several years, Sagard Holdings, which manages about $8-billion in alternative assets, has been building its investment presence across several asset classes, including private equity in Europe, private credit, health care royalties and venture capital.
Earlier this year, Sagard launched a private-equity business that focuses on middle-market investments in Canada, and in June registered a $200-million special purpose acquisition company, or SPAC, targeting businesses in the financial-technology sector.
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Clare O’Hara