French private equity house Sagard Private Equity Partners has doubled the size of its third fund by re-opening the vehicle to investors.
Sagard III was launched in 2013 and raised €400 million from the firm’s two cornerstone investors, the Canadian Desmarais family and the family office of Belgian industrialist Albert Frère.
Last year Sagard decided to re-open the fund, offering the wider LP community the opportunity to access the fund’s existing portfolio as well as taking part in new investments.
In around five months Sagard doubled the size of the fund, hitting its hard-cap of €800 million in mid-December. The majority of the new capital came from European institutional investors, it is understood.
Triago assisted Sagard with the capital raise. The placement agent declined to comment on the fundraise.
This is the first time Sagard, which was created in 2002 with the support of the Desmarais-owned Power Corporation of Canada, has approached LPs since it raised its second fund, a 2006-vintage vehicle which closed on €808 million.
It is understood that roughly half the capital in both Fund I, which closed on €600 million in 2003, and Fund II comes from the Desmarais and Albert Frère families.
Sagard decided not to open Fund III to institutional investors in 2013 due to the performance of Fund II at that time, it is understood.
There are already six investments in Fund III, with a seventh, a €50 million investment in plastic packaging business IpackChem, expected to be finalised in the coming weeks. Following the closing of the additional capital, Sagard will be looking to make around six further investments and will have an investment period of three years in which to do so.
The fund invests in companies with enterprise values of between €50 million and €300 million, according to Sagard’s website.