- What is Sagard’s investment objective?

- What makes Sagard different from the competition?

- If Sagard doesn’t use IRR to measure performance, what does it use?

- What does it mean to you to be “a long-term investor?”

- Do you always use leverage?

- Are you always the sole investor?

- Why did you acquire a minority interest in Vivarte and in Faiveley Transport?

- Do you have any favorite industries?

- Is Sagard interested in subsidiaries of large corporations?

- Does Sagard ever operate as a passive financial investor?

- What does Sagard have to offer a family-owned business?

- How do I get in touch with Sagard?

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What is Sagard’s investment objective?

Sagard invests in companies to provide them with the resources they need to achieve their strategic goals, and assists them throughout the project.

Sagard offers a financing alternative to the stock market and the banks, but we add much more than just funding.
We give portfolio company management teams the full benefit of our energy and our experience—coupled with the experience of our partners—and the strength of our network to ensure that their projects succeed.

What makes Sagard different from the competition?

With around ten investors, most of whom represent industrial families, Sagard’s strength lies in the emphasis we place on human, industrial and strategic issues when considering potential investments.

The resources available to the Sagard team and its far-reaching, high-quality networks enable us to analyze projects thoroughly and act swiftly.

Although financial considerations obviously matter, at Sagard we believe that they must be assessed from a long-term perspective. In our view, only investment projects that are properly carried out truly add value.

In keeping with our commitment to long-term value creation, we are very pragmatic about the form our investments may take. To us, “A different way to invest” also means taking a good look at unconventional deals.

If Sagard doesn’t use IRR to measure performance, what does it use?

Rather than seeking a high IRR in the short run, we seek a reasonable money multiple on our initial investment in absolute terms. Even if that takes 5 or 7 years, we are willing to wait.

This way of measuring performance ties in with our overall investment philosophy, which is based on supporting the ambitious growth objectives of management teams.

What does it mean to you to be a “long-term investor?”

Our aim is to assist management teams in transforming the companies in which we invest and reinforcing their competitive position. Changes of that magnitude can’t be achieved in just a few months.

We facilitate change by giving the companies that work with us the benefit of our financial resources, our experience and the experience of the many corporate leaders and decision-makers associated with Sagard.

Our business model encourages us to give management enough time to make the necessary changes. That is what a long-term investment horizon means to us.

Do you always use leverage?

While much of the added value we expect derives from the specific business projects that have convinced us to invest, partially leveraged financing can sometimes optimize the capital structure and thereby enhance the value-adding process.

However, every project is different, and not all projects can assume the same debt level at the outset.
This is why we consistently strive to structure acquisition financing in such a way as to anticipate the company’s future financing needs. Our overriding aim is to avoid jeopardizing growth and the future through excessive initial debt.

Are you always the sole investor?

Actually, we never are, since the portfolio company’s management team always co-invests with us!

Our objective is to provide active, ongoing support to projects we believe in, and projects we feel we can contribute to in a unique way.

Sagard’s pragmatic culture reflects its investor base, makes us good listeners and encourages us to attract and retain the talent we think will improve our chances of meeting the targets we have set with portfolio company management teams. We are perfectly willing to involve third parties in our investments, as long as they add value. In the case of Groupe Moniteur, for example, our partner Dexia, an organization that provides financing for municipal governments, has contributed to the development of the Gazette des Communes business.

A further motivation for appealing to outside investors is that some large-scale transactions (involving companies worth €500m or more) are not feasible without additional equity financing.

In any event, Sagard’s ultimate goal is to unite the various parties around a common project that adds value.

Why did you acquire a minority interest in Vivarte and in Faiveley Transport?

Because we were inspired by their people and their business project.

In the case of Faiveley Transport, we were given the rare opportunity to join forces with François Faiveley to create a world leader. We seized that opportunity immediately, since we have the necessary liquidity guarantees, even though we hold only a minority stake.

As regards Vivarte, we worked extensively with Georges Plassat when he was Sagard’s Industrial Advisor. This allowed us to become thoroughly acquainted with the company and grasp the potential value of his project for Vivarte. It was therefore only natural for us to take part in the transaction, along with PAI.

Do you have any favorite industries?

No. We are pragmatic investors. Once we have understood the key issues at stake in a given industry and ascertained that high growth potential exists, we are willing to consider investing.

Given the multiple support structures we work with (investors, Advisory Board, Industrial Advisors, networks), in almost all cases, we have no trouble accessing industry-specific expertise.

Is Sagard interested in the subsidiaries of large corporations?

Sagard is interested in business and development plans driven by ambitious entrepreneurs.

A subsidiary of a large corporation may feel that it cannot realize its full potential, especially if it operates outside of the core business. In such a case, the subsidiary may be ideally suited for partnership with Sagard.

But our horizon extends much further, as our current investment portfolio clearly shows. Entities of all types, whether corporate subsidiaries, family businesses or even publicly listed companies, are likely to find that Sagard is the catalyst they need to add value.

Does Sagard ever operate as a passive financial investor?

No, because that would be inconsistent with our underlying investment philosophy. We place a premium on the value we believe we can add to investment projects—and that calls for interaction with management teams.

What does Sagard have to offer a family-owned business?

The opportunity to grow, to shift into high gear, without exposing the business to excessive leverage, volatility and other financial risks.

Sagard can help family businesses carry out extensive projects that improve their chance of success while allowing them to maintain control over operations.

No one is more ideally suited as a partner than Sagard when it comes to understanding the issues facing family-owned companies: after all, we’re from the same background!

How do I get in touch with Sagard?

Call Jocelyn Lefebvre at

+33 (0) 1-53-83-30-00