Canada-based asset management firm Sagard has agreed to merge with private equity company Unigeston to make a new private equity platform. The deal is expected to result in the creation of a new leader specifically targeting middle-market transactions, as per an official press release.
Middle market transactions refer to M&A activity targeting companies neither in the large size or small size PE sector, but somewhere in between. According to Proven, deals of this size are usually somewhere between $10 and $500 million.
After the merger, the new entity will manage $23 billion worth of private equity assets with Sagard managing $44 billion in total assets.
For the transaction, UBS was the exclusive financial advisor to Unigeston, while PwC and Deloitte were the financial due diligence advisor and tax adviser, respectively, for Sagard.
Unigeston’s non-private equity interests will not be included in the deal. The transaction is planned to close in 2026.
“Unigestion, a firm with a long and successful history under the leadership of Bernard Sabrier, and a culture that is highly aligned with Sagard’s, brings deep investment expertise, strong investor relationships and formidable investment discipline,” said Sagard’s CEO Paul Dasmarais the third.
“This transaction would result in increased deal activity in the mid-market, driven by the combined efforts of both firms. LPs will be able to invest in more diversified mid-market strategies across geographies,” said an analyst based out of India with experience in middle-market transactions.