Power Corporation’s value creation strategy is designed to capitalize on its long-term relationships to achieve superior investment returns and stable cash flows. As part of Power Corporation’s diversification strategy, significant investments have been made in non-financial sector investment platforms. Historically many of these investments were held in funds managed by third parties. Since the early 2000s, Power Corporation has been investing and developing its own investment platforms as described below.
Since the launch of the first Sagard fund in 2002 (Sagard Europe), Power Corporation has continued to develop investment platforms and operate equity investment funds in three principal geographies: Sagard Europe, Sagard Holdings (North America), and Sagard China.
The Sagard platforms are managed locally by experienced investment professionals who have an in-depth knowledge of the local public and private markets and benefit from collaboration within the Power group companies.
Power Corporation’s investment fund activities leverage its extensive global network and business relationships, seek to achieve long-term capital appreciation through fundamental investment analysis, and seek opportunities to acquire controlling interests in its most promising investments.
Each of the Sagard funds adheres to Power Corporation’s investment philosophy and governance model.
Launched in 2002 and headquartered in Paris, Sagard Europe currently operates the Sagard II and Sagard 3 funds. These funds invest in mid-sized private companies based in France, Belgium, Luxembourg and Switzerland. The Sagard Europe funds invest, through significant influence or controlling positions, in companies that have high growth potential and superior management talent. Pargesa, GBL and third parties also invest in the Sagard Europe funds.
Launched in 2005, Sagard Holdings invests in equity and debt capital of middle-market companies in the United States and Canada, and migrates its investments in companies that have superior growth and return profiles to controlled positions. Sagard Holdings launched Sagard Credit Partners LP in December 2017, a fund which provides credit capital directly to public and private middle-market companies across Canada and the United States. Third parties also invest in Sagard Credit Partners LP.
Sagard China, based in Shanghai, holds minority positions in Chinese and Hong Kong publicly listed companies and seeks absolute return with low volatility. It is a long-term investor and holds a portfolio of selected stocks. Power Corporation operates as a Qualified Foreign Institutional Investor (QFII) in the Chinese “A” shares market.
Established in 2012, Power Energy is a wholly owned subsidiary that actively manages investments in the sustainable and renewable energy sector with the goal of building and owning, over the long term, companies that can generate growing and stable cash flows.
Applying Power Corporation’s principles of collaboration and building trusted relationships, Power Energy invests in industries and companies that benefit from the transition towards a sustainable and renewable world. It currently has invested in companies that develop, own and operate solar and wind electricity generating assets in North America as well as leading manufacturers of sustainable technologies. It is rapidly expanding its footprint in businesses with stable long-term cash flows.
Power Energy currently holds investments in three companies:
Power Corporation’s multi-generational relationships in China have allowed access to further investment opportunities in that country, including through its investment in China Asset Management Co., Ltd. (China AMC).
Founded in 1998 as one of the first fund management companies in China, China AMC has developed and maintained its position among the market leaders in China’s asset management industry. It is now one of the largest asset managers in the country.
The investment in China AMC diversifies Power Corporation’s asset base and creates strategic investment opportunities with other asset managers within the Power group of companies. It also provides the potential to leverage the group’s extensive knowledge in wealth management and distribution. Subsidiaries within the Power group of companies benefit from this strategic relationship to help identify opportunities to work together on developing products and future subadvisory relationships.
Each of Power Corporation and Mackenzie, a subsidiary of IGM Financial, directly hold equal interests of 13.9% in China AMC, for a combined 27.8% interest.