CIC Capital Canada, an affiliate of French banking group Crédit Mutuel CM11-CIC, has launched a US$500 million North American Growth Fund. The evergreen fund, which will earmark US$150 million for opportunities in Canada, will invest in minority growth equity and buyout deals backing companies with EBITDA of about $3 million to $15 million. Preferred sectors include include food and beverage, healthcare, information technology, specialty manufacturing, business services and aerospace. Montréal’s CIC Capital, which manages Emerillon Capital‘s venture capital fund in partnership with Desjardins Group, also said it plans to open offices in Toronto and the United States.
CIC Capital Launches US$500 Million North American Growth Fund
MONTREAL, QUEBEC–(Marketwired – June 1, 2017) – CIC Capital Canada, a member of the French banking group Crédit Mutuel CM11-CIC, announced today the launch of a new US$500 million North American Growth Fund, with US$150 million dedicated to Canada, mainly for investment in Quebec and Ontario companies.
Established in Montreal since 2010, CIC Capital has managed the Emerillon Capital venture capital fund, a partnership with Desjardins, since 2013. This fund holds equity positions in a dozen promising Quebec and Ontario technology businesses and was an investor in Maluuba, an artificial intelligence company acquired by Microsoft in 2017.
In Canada, the new North American Growth Fund targets mainly CA$5-20 million deals in growth equity and buyout investments generally in companies with earnings before interest, taxes, depreciation and amortization (EBITDA) in the CA$3-15 million range. Preferred sectors include food and beverage, healthcare, information and communications technologies, specialty manufacturing, business services and aerospace. CIC Capital usually invests as a co-investor and always as a minority shareholder, leaving entrepreneurs and business leaders with broad autonomy to pursue their vision and strategy.
CIC Capital invests its own capital, providing a source of evergreen capital (up to ten years), making it possible to match the investment period with industrial time, and avoid pressure on portfolio companies typically associated with investment liquidity considerations. This confers broad flexibility to tailor the amount, duration and use of investment capital to match the real needs of entrepreneurs, while having the ability to reinvest as required.
“The launch of this new fund is great news for local entrepreneurs, particularly for the leaders of family businesses who seek a solid and stable partner, a source of patient and flexible capital, and an experienced team to support them for the long term,” stated Ludovic André, president of CIC Capital in Canada and managing director of Emerillon Capital.
A subsidiary of CM-CIC Investissement, CIC Capital is positioned to guide local businesses to investment, export and international partnership opportunities in Europe through the transatlantic presence of its parent company, active in the private equity space for over 30 years, and its network of offices in France, Germany, Switzerland and the United Kingdom. CM-CIC Investissement manages EUR2.6 billion of its own funds and is invested in more than 350 businesses, providing the CIC Capital team a privileged access to deep multi-sector knowledge for the benefit of entrepreneurs.
“Since we do not have to return invested capital to limited partners when a traditional investment vehicle reaches term, we have full freedom to reinvest in our portfolio companies,” added Christophe Tournier, member of the CM-CIC Investissement management board. “The evergreen nature of our own capital, combined with our international development, represent key differentiators in the private equity space.”
To complement its Montreal presence, CIC Capital plans to open a Toronto office and to progressively grow its footprint south of the border with offices in Boston and New York.
ABOUT CIC CAPITAL CANADA
CIC Capital is a subsidiary of CM-CIC Investissement, the private equity arm of Groupe Crédit Mutuel (CM11 – CIC), one of the largest banking groups in France and one of the most financially sound European institutions. Since 2013, CIC Capital has managed the Emerillon Capital venture capital fund, established in partnership with Desjardins. In 2017, CIC Capital launched its US$500 million North American Growth Fund, with US$150 million dedicated to Canada, mainly for investment in Quebec and Ontario companies.
For more information, please consult the fund fact sheet.
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