AGF and the SAF Group Extend Partnership with Focus on New Private Credit Opportunities | AGF Perspectives
Mar 22, 2021
AGF Management Limited Enters into Definitive Option Agreement with the SAF Group
AGF Management Limited (AGF) announced today it is accelerating the firm’s commitment to its private alternatives business through an expanded partnership with the SAF Group (SAF), securing the opportunity to increase its ownership over time.
“The capital we received from the completion of the merger of Smith & Williamson and Tilney affords AGF the flexibility to deploy funds in a number of ways including against growth opportunities such as private alternatives. Through our expanded partnership with SAF we will look to bring additional unique investment opportunities in private credit to our clients globally,” said Kevin McCreadie, CEO and CIO, AGF.
AGF has entered into a definitive option agreement with SAF which grants AGF the right to acquire management fee earnings of select SAF funds, and any new private credit funds, exercisable at any time over the next 12 months. While the extension of AGF and SAF’s partnership is initially focused on bringing new investment products to market, including opportunistic funds in late 2020, the option agreement also creates a path forward to a joint private credit firm in the future that is well-positioned to capitalize on the expected growth in private debt investments.
“Evolving the partnership SAF has with AGF will further our position as a market-leading private credit firm to capitalize on the massive expected growth in private debt investments,” said Ryan Dunfield, Founder and CEO, SAF Group. “As we bring new investment opportunities to market, AGF’s operational scale and expertise will benefit SAF, and our current and future investors, by allowing us to remain solely focused on the management of our investments and LPs.”
Later this year, AGF and SAF expect to initially bring to market a direct lending private credit strategy for institutional and high-net worth investors, with a focus on originating, structuring and lending to middle and lower middle market companies, primarily in Canada and the United States. The General Partner expects to make a capital commitment of $15M to the fund. Subsequently, AGF and SAF will bring to market offerings with varying liquidity and return profiles designed to meet the needs of a wider audience and different segments of the investor market.
“Since its inception back in 2014, an objective for our private alternatives business has been to generate recurring income, most importantly management fee profits for our shareholders,” said Adrian Basaraba, Chief Financial Officer, AGF. “As we move forward, the expansion of AGF’s footprint with SAF into the private credit space will accelerate this objective while also delivering against the needs of our clients who are demanding access to uncorrelated asset classes in the face of changing market dynamics.”
ABOUT AGF MANAGEMENT LIMITED
Founded in 1957, AGF Management Limited (AGF) is an independent and globally diverse asset management firm. AGF brings a disciplined approach to delivering excellence in investment management through its fundamental, quantitative, alternative and high-net-worth businesses focused on providing an exceptional client experience. AGF’s suite of investment solutions extends globally to a wide range of clients, from financial advisors and individual investors to institutional investors including pension plans, corporate plans, sovereign wealth funds and endowments and foundations.
AGF has investment operations and client servicing teams on the ground in North America, Europe and Asia. With $37 billion in total assets under management, AGF serves more than one million investors. AGF trades on the Toronto Stock Exchange under the symbol AGF.B.
ABOUT THE SAF GROUP
Founded in 2014, SAF Group (SAF) is one of Canada’s leading alternative capital providers specializing in bespoke financial products and having committed in excess of $2.0 billion in transactions investing in over 25 companies to date. SAF’s credit-focused team of over 15 investment professionals manage assets in capital intensive industries that are scalable. The team has demonstrated expertise in energy, mining and materials, financial services and other opportunistic deployments in both blind pools and closed vehicles.
With offices in Calgary, Alberta and Vancouver, British Columbia, SAF Group leverages a team of resource specialists, in-house research and operations teams in addition to a deep bench of investment professionals to provide flexible and long-term capital solutions to public and private corporations while providing stable and attractive risk-adjusted returns for investors.
Director, Corporate Communications