Sagard, the alternative asset management arm of Power Corporation of Canada, has unveiled a $150 million USD AI fund, targeting companies that promote AI integration in financial services and beyond. The initiative is designed to enhance Power Corp’s access to AI advancements, partnerships, and deployment opportunities across its extensive portfolio.
- Sagard’s AI fund pools $150 million USD from Power Corp and subsidiaries
- Fund targets global AI companies accelerating adoption in financial services
- Leadership includes Evan Kerr as general partner and AI expert Parinaz Sobhani
What happened
Power Corporation of Canada, a major financial services conglomerate based in Montréal, has initiated a new AI investment fund through its alternative asset manager Sagard. The fund, backed by $150 million USD from Power Corp and its two subsidiaries, Great-West Lifeco and IGM Financial, aims to support companies developing AI technologies that facilitate adoption across the financial sector and other industries.
To spearhead this effort, Sagard appointed Evan Kerr, formerly of Georgian, as general partner of the fund. Kerr’s role will be to direct investments globally and assist AI startups in leveraging Power Corp’s broad network. This launch follows Sagard’s 2024 hiring of Parinaz Sobhani as its first head of AI, further enhancing the firm’s in-house capabilities.
Why it matters
The creation of this AI-focused fund signals Power Corp’s strategic commitment to embracing technological innovation to maintain competitive advantage. With a consolidated portfolio nearing $4 trillion CAD in assets and over $46 billion USD in Sagard’s managed assets, the group intends to position itself at the forefront of AI-driven transformation in financial services.
Sagard’s approach is intentionally broad, investing across AI technologies without restriction on stage or sector. This flexibility allows the firm to identify and support emerging leaders shaping AI’s impact on various markets, fostering stronger commercial partnerships and pilot projects within its ecosystem.
What to watch next
Observe how Sagard’s AI fund navigates the rapidly evolving AI startup landscape, especially in financial services. The fund’s success may influence other Canadian and global investors to increase focus on AI technologies, potentially accelerating sector-wide transformation.
Additionally, tracking the active role of AI leadership figures such as Evan Kerr and Parinaz Sobhani will provide insight into how the fund integrates innovation with diversity and inclusion goals, particularly benefiting underrepresented groups in the AI ecosystem.