Sagard Launches New Collateralized Loan Obligation (CLO) Equity Fund, Providing Investors with Opportunity for Compelling Returns and Greater Diversification in the Leveraged Loan Market Français
LOS ANGELES, June 10, 2025 /CNW/ - Sagard, a global alternative asset manager with over US$27B of assets under management, today announced the launch of a new Sagard CLO Equity Fund (the "Fund"). This initiative represents a compelling opportunity for investors seeking enhanced returns and diversification through exposure to the attractive risk-reward profile of the CLO equity asset class.
The Fund intends to invest in the equity tranche of future Sagard | HalseyPoint CLOs, which are a diversified pool of leveraged loans managed by Sagard | HalseyPoint, a seasoned CLO manager with a 25-year track record. The Fund targets the equity tranche, the highest-return segment in a CLO structure. It aims to provide investors with quarterly cash flow while managing risk through diversification. The Sagard team and affiliates, along with major insurance players and other institutional investors, have committed $92.5M in capital 1. The Fund aims to raise an additional $157.5M to reach a target size of $250M.
"We are excited to partner with Lynn Hopton and Yvonne Stevens' team at Sagard | HalseyPoint to offer our expertise to new investors in CLO equity. It's a unique time to invest in this asset class," said Adam Vigna, Co-Founder and Chief Investment Officer at Sagard. "In a leveraged loan market of about $1.5T, there are very few managers who not only have a deep grasp of market dynamics but also have built the sourcing relationships in the broadly syndicated loan market. We believe these qualities position us to consistently deliver potentially attractive returns."
Key features of the Sagard CLO Equity Fund 2
Diversified Exposure: the Fund invests in the equity tranche of future CLOs, each composed of a strategically selected pool of secured loans managed by Sagard | HalseyPoint. This broad diversification across multiple CLOs and hundreds of underlying loans helps mitigate risks associated with any single loan or issuer.
Potential Returns: the CLO equity tranche historically offers the highest potential return within the CLO capital structure with quarterly, front-loaded cash flow. The Fund strategically targets this tranche, providing investors with the opportunity to capture a significant portion of the potential returns generated by the underlying secured loan assets.
Experienced Management: The Fund benefits from the track record of the Sagard | HalseyPoint team. With a 25-year history in the CLO market, they are a well-established manager, having successfully raised and managed over 30 CLOs through varying economic conditions.
"We're excited to see how the asset class has grown in recent years. With attractive loan prices in both secondary and new issue markets, and arbitrage opportunities still intact, this is a great time to develop a strong backing on the equity side. Our objective is to issue more CLOs every year, and to pass on the resulting pricing efficiency to our equity investors," said Lynn Hopton, Co-Founder and Managing Partner at Sagard | HalseyPoint.
In March 2024, alternative asset manager Sagard acquired a 40% stake in HalseyPoint CLO platform to broaden its credit offering – the company since rebranded to Sagard | HalseyPoint.
About Sagard Credit
Sagard Credit provides bespoke debt solutions to public and private middle-market companies seeking capital in the U.S. and Canada. Sagard's credit investment platform and its strategic partner, Sagard | HalseyPoint, together manage $8.5B in assets including $4.5B under its private credit and senior lending strategies and $4.0B under management at Sagard | HalseyPoint in the CLO space 3. Our investments are tailored to the company's specific needs, including support for growth, M&A, refinancing, recapitalizations, and other strategic initiatives. Sagard's credit offering includes investment strategies in opportunistic credit, senior lending, collateralized loan obligations, and private wealth solutions.
About Sagard
Sagard is a global multi-strategy alternative asset management firm with over US$27B under management, 190 portfolio companies, and 400 professionals. We invest in venture capital, private equity, private credit, and real estate. We deliver flexible capital, an entrepreneurial culture, and a global network of investors, commercial partners, advisors, and value-creation experts. Our firm has offices in Canada, the United States, Europe, and the Middle East.
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1 The total capital commitments referenced herein represent the aggregate capital commitments received by the Fund as of the date hereof. Due to regulatory and structural requirements applicable to certain investors, a portion of these capital commitments will not be immediately accepted by the General Partner and therefore, will not be available for drawdown by the Fund. The General Partner has agreed that, as additional capital commitments are received during subsequent closings, withheld capital commitments will be accepted and be available to the Fund. However, there can be no assurance that the Fund will ultimately receive the necessary additional capital commitments to make all committed capital available for drawdown.
2 There can be no assurance that the Fund will achieve results comparable to any past results, that the returns generated by the Fund will equal or exceed those of any other funds or accounts sponsored or managed by Sagard | HalseyPoint or that the Fund will be able to implement its investment strategy or achieve its investment objectives. Prospective investors should review the Fund's offering documents for additional important information regarding risks of investing and potential conflicts of interest associated with this Fund.
3 As of December 2024.
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