Sagard has reached a $1bn first close for its third private credit fund – Sagard Credit Partners III – putting the strategy halfway towards its $2bn fundraising target as investor appetite for direct lending continues to grow.
SCP III attracted commitments from 16 institutional investors at its initial close, with the majority of capital coming from existing limited partners backing the firm’s latest North American direct lending vehicle.
The fund will continue the investment strategy established by its predecessors, providing directly originated senior secured loans to middle-market businesses across Canada and the US. The strategy focuses primarily on non-sponsored companies, targeting a segment of the market where competition from larger private credit managers and traditional lenders is less intense.
Sagard said the strategy relies on proprietary deal sourcing, long-standing borrower relationships, disciplined underwriting and customised financing structures to generate risk-adjusted returns.
The investment team is led by co-founder and chief investment officer Adam Vigna, whose senior investment team has worked together for more than two decades.
Since launching the strategy, Sagard Credit Partners has deployed more than $1.9bn across its first two funds and completed 29 realisations. Across Sagard’s wider credit platform, the firm has invested approximately $4.5bn since 2016.
Vigna said the latest fund would allow the manager to maintain its selective investment approach in an increasingly competitive private credit market, where structuring expertise and disciplined underwriting remain key differentiators.
Mustafa Humayun, partner and portfolio manager at Sagard Credit Partners, added that the new vehicle would enable the firm to continue providing tailored financing solutions for middle-market businesses while maintaining the disciplined portfolio construction that has characterised the strategy since inception.
The fundraising follows the successful deployment of Sagard Credit Partners II, which closed on $1.17 billion in 2022 and has now invested all of its committed capital across a diversified portfolio.
Sagard said SCP III hams already begun investing, deploying approximately $135 across three transactions since launch.
Sagard manages more than $46bn in assets across private equity, private credit, venture capital and real estate strategies, with investment operations spanning North America, Europe, Asia and the Middle East.
