CDPQ earmarks $500 mln in funding for global growth, successions

Caisse de dépôt et placement du Québec has unveiled two new funds to invest in Québec companies seeking global growth opportunities or facing succession issues. Croissance CDPQ, capitalized at $250 million, will invest between $10 million and $100 million through a variety of financing vehicles in companies with international expansion projects. Fonds Relève CDPQ, also capitalized at $250 million, will invest between $10 and $100 million in equity in companies focused on business transfer projects. The announcement was made by Christian Dubé, the Canadian pension fund’s executive vice-president, Québec.

PRESS RELEASE

Two funds created to support Québec companies’ international growth and business transfer projects

MONTRÉAL, Feb. 15, 2017 /CNW Telbec/ – Caisse de dépôt et placement du Québec announced the creation of Fonds Croissance CDPQ and Fonds Relève CDPQ, building on its existing offer available to Québec companies. These funds, totalling $500 million, will support companies seeking to grow through international expansion or having reached the business transfer stage.

“We have been supporting Québec companies in their international expansion projects for several years already. More recently, as part of different investments, we have seen how tapping into our networks and connecting our partners, the companies in our portfolio and our experts on the ground can make a difference. We have strengthened our teams to be able to go even further in the support we offer, over and above financing. By creating this fund, we wanted to structure and streamline our approach and pool resources to truly accelerate the growth of Québec companies in the global marketplace,” said Christian Dubé, Executive Vice-President, Québec at la Caisse.

“We also decided to establish a fund dedicated to business transfer, a niche in which we intend to play an even more active role. Knowing that 30% of Québec business owners will retire and look to transfer their business to a successor within the next six years, we are convinced that this fund is essential. Our goal is to bring concrete solutions and provide customized support to these companies to ensure they are sustainable and successful,” added Mr. Dubé.

Fonds Croissance CDPQ

The Fonds Croissance CDPQ, totalling $250 million, will invest by increments of $10 to $100 million, using the financial vehicle best suited to the company’s situation. The Fund will target public and private companies meeting the following criteria:
•Annual revenues between $50 and $500 million
•Well-established management team
•Solid performance track record
•Clear international growth strategy

With the exception of real estate, all business sectors are eligible.

Targeted growth projects include, for example, acquisitions that would allow a company to get closer to its existing and potential customers or attain a critical mass in its industry.

Fonds Relève CDPQ

The Fonds Relève CDPQ, totalling $250 million, will target business transfer projects, and invest between $10 and $100 million, primarily in the form of equity, in public and private companies meeting the following criteria:
•Annual revenues between $50 and $500 million
•Solid performance track record
•Well-defined transition plan
•Investment structure that allows la Caisse to be a long-term partner throughout the life of the company

With the exception of real estate, all business sectors are eligible.

This fund may finance, for example, a business transfer project, allowing its founder to monetize a portion of his property while supporting the successor – whether family-related or not – involved in the transition. La Caisse will propose tailored investment and support solutions to facilitate the transfer.

“These two new funds are additional vehicles to help us build the next generation of Québec’s successful businesses, while generating a return that meets our clients’ needs,” concluded Mr. Dubé.

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.

For further information: Jean-Benoît Houde, Senior Advisor, Media Relations, +1 514 847 5493, jbhoude@cdpq.com

Photo courtesy of Reuters/Christinne Muschi