Novacap acquires an interest in AGA Financial Group Inc

Canadian private equity group Novacap has acquired an interest in AGA Financial Group Inc (AGA), one of Quebec’s leading employee benefits advisory firms and third-party administrators of group insurance and retirement plans.

AGA helps businesses across Canada develop and administer tailor-made group insurance plans. AGA was founded in 1978 and has been owned and operated since 2013 by veteran insurance executives Martin Papillon, Chantal Dufresne and Gabriel Gagnon. AGA serves more than 1,200 clients across the spectrum from small and medium-sized businesses to those with national footprints. It employs more than 100 professionals, including a team of actuaries and a network of external brokers, with offices in Montreal and Quebec City.

 
“AGA has built a first-class franchise that combines passionate experts with a culture of innovation,” says Marcel Larochelle, Managing Partner, Financial Services, at Novacap. “This is a unique attribute in any business, and it is what fascinated us from the very beginning of our conversations. It speaks to the strength of the Novacap platform that we have been able to attract such a renowned group of partners in Martin, Chantal, and Gabriel.”
 
AGA is the third investment of the Novacap Financial Services I fund since its first closing in November 2019. Novacap is the first private equity firm in Canada to launch a fund dedicated to investing in financial services businesses.
 
“Novacap is excited to assist AGA with our deep operational expertise, our experience in executing mergers and acquisitions and in developing new markets across Canada and beyond,” adds Rajiv Bahl, Senior Partner, Financial Services, at Novacap. “We look forward to working with the management team to power AGA’s continued growth.”
 
“Partnering with Novacap is a privilege for my partners and all AGA employees, as we all have exactly the same ambitious vision for the future of the company,” says Martin Papillon, President and Chief Executive Officer of AGA. “Our mission is to facilitate access to group insurance and pension plans, and to streamline their administration for our customers. This pledge is reflected not only in exceptional service, but also strategic advice that allows us to provide more in terms of solutions, products and services. With Novacap as our partner, these capabilities will only be enhanced.”
 
Fasken Martineau DuMoulin LLP acted as legal advisor to Novacap.

Gowling WLG (Canada) LLP acted as legal advisor to AGA.