BDC Capital has earmarked $250 million for investment in Canadian growth equity opportunities over the next five years. The initiative, which forms part of a $1.8 billion strategy announced in April, will focus on making minority investments of $2 million to $25 million in companies with at least $5 million to $10 million in revenue. Overseeing the initiative will be Vice President Claude Miron. Miron replaces Elmer Kim, who joined BDC last year to launch the growth equity practice and team. Miron has nearly three decades of experience in a range of professional roles in the corporate finance, mezzanine, private equity and venture capital markets.
BDC Capital commits 250M$ in growth equity – Claude Miron appointed as new VP to oversee program
MONTREAL, June 5, 2017 /CNW Telbec/ – BDC Capital, the investment arm of the Business Development Bank of Canada (BDC), announced today its intention to invest $250 million in Growth Equity over the next five years, a minority equity offering for high potential, rapidly growing businesses. BDC Capital’s new offering aims to fill a gap between small-scale financing options generally available to smaller firms, and the range of sources available to larger, more established companies.
“Mid-sized, high-growth companies are constantly looking for flexible, patient financing alternatives and this is exactly what we are proposing with today’s announcement,” indicates Jérôme Nycz, Executive Vice President for BDC Capital. “Our objective is to be a long-term, management-friendly partner that helps drive the growth of high-potential companies across Canada. We want to give ambitious and talented entrepreneurs the means to excel and grow in order to create a new generation of Canadian champions.”
Patrick Latour, Senior Vice President, Growth and Transition Capital, also announced the appointment of industry veteran Claude Miron as Vice President responsible for overseeing the rollout of BDC Capital’s growth equity offering. Miron replaces Elmer Kim who recently left BDC Capital after spending the last year successfully launching the growth equity practice and team.
The offering is dedicated to businesses from all sectors across Canada that have at least $5 million to $10 million in revenue, a strong positioning as leaders in their industry and are seeking capital for organic growth or acquisitions. Investments will come as minority equity ranging from $2 million to $25 million for equity withdrawals, owner transitions (family or management buyout), and/or expansion purposes. Depending on the company’s capital needs, BDC Capital can lead, participate or be the sole investor of the businesses.
“During the past five years, BDC Capital has invested nearly $1.2 billion in growth capital, financing approximately 750 transactions ranging from mezzanine to working capital,” mentioned Patrick Latour. “Today’s announcement fits within BDC’s recent commitment to offer $1.8 billion to increase support for asset-light high-growth firms over the next five years.”
In its latest report, the Minister of Finance’s Economic Advisory Council reaffirms that Canada still has room to develop its growth capital market. BDC’s decision to commit these funds supports the Council’s recommendation to address this gap through the purchase of minority stakes for growth and expansion projects. The Council’s report has also resulted in the creation of a private sector Business Growth Fund which was supported by several Canadian banks and insurance companies.”
About BDC Capital
With more than $2 billion under management, BDC Capital is the investment arm of BDC, serving as a strategic partner to Canada’s most innovative and high potential firms. It offers a range of equity, venture capital and flexible growth and transition capital solutions to help Canadian entrepreneurs scale their businesses into global champions. To find out more, visit bdc.ca/capital.
BDC is the only bank dedicated exclusively to entrepreneurs. It promotes Canadian entrepreneurship with a focus on small and medium-sized businesses. With its 110+ business centres from coast to coast, BDC provides businesses in all industries with financing and advisory services. Its investment arm, BDC Capital, offers equity, venture capital and flexible growth and transition capital solutions. To find out more, visit bdc.ca.
Claude Miron is Vice President, Growth Equity with BDC Capital. In this role, he is responsible for leading BDC’s team of equity investment professionals across Canada. He works closely with his subordinated debt and mezzanine colleagues in the Growth and Transition Capital team to invest value-added equity capital alongside Canadian entrepreneurs as they grow their companies to become the most competitive in the world. Claude has over 27 years of experience in venture capital, corporate finance, mezzanine financing as well as private equity. He has deep industry experience and investment success in a variety of sectors such as life sciences, information technologies, telecommunications, industrial technologies, manufacturing, consumer products, and industrial and commercial services. Claude seeks to apply his experience to help more Canadian entrepreneurs obtain the capital they need to realize their ambitions.
For further information: Shawn Salewski, Director External Communications, BDC, email@example.com, 1-844-625-8321
Photo courtesy of LinkedIn