Abu Dhabi investment firm ADQ joins BMO in $1.45 billion stake in US venture capital firm Sagard

DUBAI: ADQ, one of Abu Dhabi’s largest investment entities with $14.5 billion in assets under management and as many as 300 portfolio companies, will take a stake in Sagard. Joining ADQ is BMO, the eighth largest bank in North America by assets.

The Sagard deal would also result in a further stake increase by existing shareholder Great-West Lifeco. “ADQ, BMO and GWL have agreed to invest capital to fuel Sagard’s future growth, including through merger and acquisition transactions,” a statement said.

Abu Dhabi investment giants ADQ and Mubadala continue to make progress in raising their profile abroad. Companies such as Emirates Telecom Holdings e& have thus become the largest shareholders of Vodafone in the UK, and recently formed an alliance with the Czech PPF Group to enter the European market.

These entities have entered into agreements with Sagard to make respective additional long-term capital commitments to its existing and future investment strategies, “enhancing funding potential and accelerating the company’s ability to launch new products.”

“Sagard’s entrepreneurial ability to mobilize investment talent, launch new differentiated strategies and achieve concrete results attracted us to partner with them,” said Murtaza Hussain, chief investment officer for M&A and alternative investments at ADQ. The value-add partners’ commitment is clear, and we’re excited to support their future growth.”

The transaction is expected to close in the third quarter of this year.

Launched in 2005, Sagard remains primarily focused on the US and Canada. The deal with ADQ BMO could expand the scope of future investments, including geographically.

“These strategic partnerships will significantly accelerate our vision to become one of the world’s most respected alternative investment managers,” said Sagard Chairman and CEO Paul Desmarais III. “Strategic partner capital enables us to attract high-quality investment team, launch new investment strategies, and raise capital faster. Additionally, this will expand our global network and make us an even stronger business partner to our portfolio companies. We are very excited to unlock this enormous potential.”