CRCD, Caisse de dépôt reinvest $90 mln in small business fund

Capital régional et coopératif Desjardins (CRCD) and Caisse de dépôt et placement du Québec have agreed to recommit $90 million to Capital croissance PME, a private equity fund that invests in small and medium-sized companies in Québec. The new commitment brings the fund’s total capitalization to $540 million. Launched in 2010,  Capital croissance PME has helped finance some 322 Québec companies, nearly 70 of which were financed last year. Caisse de dépôt earlier this month committed $500 million to two new Québec funds focused on global growth opportunities and successions.

PRESS RELEASE

Capital croissance PME’s capital base reaches over half a billion dollars

To date, the fund has supported 322 businesses across Québec

Montréal, February 20, 2017 – Capital régional et coopératif Desjardins (CRCD) and Caisse de dépôt et placement du Québec have announced a $90-million reinvestment in Capital croissance PME (CCPME), a fund created to support SMEs in all regions of Québec. The new investment brings the fund’s total capitalization to $540 million.

Since its launch in 2010, CCPME has helped fund 322 Québec companies, including 247 SMEs (77%) located outside of Montréal and the Capitale-Nationale region.

Capitalized in equal shares by la Caisse and CRCD, the fund offers SMEs across Québec financing for growth. For these companies, CCPME aims to meet needs of less than $5 million.

“Many Québec SMEs that are among the finest in their field are undercapitalized because they rely mainly on debt to obtain capital,” said Luc Ménard, Chief Operating Officer at Desjardins Business Capital régional et coopératif. “This approach hinders their development and makes them vulnerable to acquisition by foreign competitors. Equity investments, on the other hand, help ensure their longevity. For CCPME investments, we’ve created the SME Equity program, which offers more flexible governance along with a shorter agreement that’s simpler and less costly.”

“La Caisse is active at every stage of Québec companies’ growth, either through direct investment or the funds we support. Over the past seven years, the CCPME fund has tangibly contributed to the growth of hundreds of promising small businesses in Québec,” said Christian Dubé, Executive Vice-President, Québec at la Caisse. “Our involvement in Capital croissance PME is a vital part of our commitment to generate growth throughout Québec and support a large pool of SMEs, some of which will become the champions of tomorrow.”

A few investments in 2016

In 2016 alone, CCPME supported close to 70 companies, including 31 in resource regions.

Growth
Cryos Technologies, Joliette, Lanaudière

Aided by Capital croissance PME, Cryos Technologies has acquired state-of-the-art production technology to better take on the North American podiatric orthotics market. Cryos Technologies designs and manufactures dynamic plantar orthotics along with its patented CryoVizion medical imaging system. Cryos works with some 40 clinics in Québec and Ontario.

Expansion
Rotoplast, East Farnham, Montérégie

Thanks to support from Capital croissance PME, Rotoplast was able to expand by acquiring Ontario-based ACO Container Systems, a maker of plastic industrial storage tanks. Rotoplast now employs some 50 people.

Acquisition
Gestion Brasa, Rimouski, Bas-Saint-Laurent

Capital croissance PME enabled Gestion Brasa to acquire Porcupine Trailers Ltd. Gestion Brasa is a management company that owns a number of manufacturers in Québec and Ontario, including Groupe Fabnor, Trailex, Caravane Rimouski, Deloupe and Porcupine Trailers.

Transfer
Orientech, Lachute, Laurentides

CCPME is supporting the gradual family transfer of Orientech, a provider of turnkey solutions for automatic orientation (positioning) and assembly systems. Since coming on board, CCPME has facilitated the buyout of a company shareholder and has worked with the two current shareholders—a father and son—as the latter gradually takes over the business.

ABOUT CAPITAL RÉGIONAL ET COOPÉRATIF DESJARDINS

With more than 104,000 shareholders, Capital régional et coopératif Desjardins (CRCD) is a public company with $1,789 million in net assets. CRCD contributes to Québec economic development through several levers developed with its manager, Desjardins Business Capital régional et coopératif. These levers, with CRCD as the driving force, form its entrepreneurial ecosystem designed to value and nurture the best of Québec entrepreneurship. Through its ecosystem, CRCD supports the growth of nearly 420 businesses, cooperatives and funds in various industries spanning all Québec regions, helping to create and retain more than 71,300 jobs. (www.capitalregional.com or our LinkedIn page)

ABOUT CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC

Caisse de dépôt et placement du Québec (CDPQ) is a long-term institutional investor that manages funds primarily for public and parapublic pension and insurance plans. As at June 30, 2016, it held $254.9 billion in net assets. As one of Canada’s leading institutional fund managers, CDPQ invests globally in major financial markets, private equity, infrastructure and real estate. For more information, visit cdpq.com, follow us on Twitter @LaCDPQ or consult our Facebook or LinkedIn pages.

Photo courtesy of Reuters/Christinne Muschi