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 real estate investment manager EverWest Real Estate Investors LLC.
On Thursday, Sagard announced the purchase of Colorado-based 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 asset under management, EverWest marks Sagard’s first foray into real estate investments 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 CEO Paul Mahon said in a statement. “… The result will be broader, more diversified options for clients and our general account.”
Great-West will invest approximately US$2-billion in EverWest investment vehicles to support future growth, and will 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 LPs,” Sagard chairman and chief executive officer 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 the alternative asset manager registered a $200-million special purpose acquisition company, or SPAC, targeting businesses in the financial technology sector.
Your time is valuable. Have the Top Business Headlines newsletter conveniently delivered to your inbox in the morning or evening. Sign up today.