Novacap, a private equity firm, announced Oct. 5 that it has acquired a stake in AGA Financial Group Inc., a Quebec-based employee benefits advisory firm and third-party administrator.

Founded in 1978, AGA helps businesses across Canada develop and administer tailor-made group insurance plans. The firm has been owned and operated since 2013 by Martin Papillon, Chantal Dufresne and Gabriel Gagnon.

The firm serves more than 1,200 SME clients and employs more than 100 professionals, including a team of actuaries and a network of external brokers. It has offices in Montreal and Quebec City.

"AGA has built a first-class franchise that combines passionate experts with a culture of innovation," said Marcel Larochelle, Managing Partner, Financial Services, at Novacap. "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."

AGA is the third investment for the Novacap Financial Services I fund since November 2019. Novacap says it is the first private equity firm in Canada to launch a fund dedicated to investing in financial services businesses.

"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," said Martin Papillon, President and Chief Executive Officer of AGA. "Our mission is to facilitate access to group insurance and pension plans, and to streamline their administration for our customers."