The transaction will help AGA Financial to provide access to group insurance and pension plans, and streamline their administration for customers


Novacap acquires stake in AGA Financial. (Credit: Gerd Altmann from Pixabay.)

Canada-based private equity firm Novacap has acquired a stake in AGA Financial, an employee benefits advisory firm, for an undisclosed amount.

AGA also operates as a third-party administrator of group insurance and retirement plans, helping Canadian businesses develop and administer customised group insurance plans.

The company serves more than 1,200 small, medium and large businesses, along with financial security and group insurance consultants, who offer group insurance plans to their clients.

AGA has more than 100 employees, including a team of professional actuaries and a network of external brokers, with offices in Montreal and Quebec City.

AGA president and chief executive officer Martin Papillon said: “Partnering with Novacap is a privilege for my partners and all AGA employees, as we all have exactly the same ambitious vision for the future of the company.

“Our mission is to facilitate access to group insurance and pension plans and to streamline their administration for our customers.

“This pledge is reflected not only in exceptional service but also strategic advice that allows us to provide more in terms of solutions, products and services. With Novacap as our partner, these capabilities will only be enhanced.”

The stake purchase marks third investment for Novacap Financial Services I fund

The acquisition of a stake in AGA marks the third investment for the company, from its Novacap Financial Services I fund, following its first closing in November 2019.

The company claimed that it is the first Canadian private equity firm to dedicate a fund exclusively for investments in financial services businesses.

Fasken Martineau DuMoulin served as legal advisor to Novacap for the transaction, while Gowling WLG (Canada) as legal advisor to AGA.

Novacap Financial Services managing partner Marcel Larochelle said: “AGA has built a first-class franchise that combines passionate experts with a culture of innovation. This is a unique attribute in any business, and it is what fascinated us from the very beginning of our conversations.

“It speaks to the strength of the Novacap platform that we have been able to attract such a renowned group of partners in Martin, Chantal, and Gabriel.”

Last month, Novacap acquired an interest in GroupAssur, a Canadian managing general agent (MGA) focused on Property and Casualty (P&C) insurance, and offering distinctive insurance products across Canada.

Novacap is a private equity firm with assets under management, valuing C$3.6bn ($2.72bn), and operates from offices in Brossard, Quebec and Toronto, Ontario.