Capital régional et coopératif Desjardins (CRCD), a retail fund managed by Canadian private equity firm Desjardins Capital de risque, reported a share price increase based on 2013 performance to $11.66. This is a record high since CRCD’s inception in 2001, and the fifth consecutive year in which share prices have grown. The fund also reported over $167 million was disbursed to 119 businesses from CRCD’s entrepreneurial ecosystem last year. Today, the Montréal-based CRCD has assets under management totaling $1.47 billion, and over 100,000 shareholders.
Capital régional et coopératif Desjardins share price rises for the fifth consecutive year
Over $167 million in disbursements to 119 businesses in 2013
Highlights as at December 31, 2013
§ Share price: $11.66 compared with $11.47 as at December 31, 2012
§ Net income: $25.0 million
§ Annual return: 1.7%
§ Net asset value: $1,470.6 million, up $114.1 million
§ Investments impacting the Québec economy portfolio return: 8.9%
§ Other investments portfolio return: 0.5%
Montréal, February 12, 2014 – Capital régional et coopératif Desjardins (CRCD) generated net income of $25.0 million in 2013 for a return of 1.7%. Effective noon today, this performance raises per share price to $11.66, a record high since CRCD’s inception in 2001. The share price rose for the fifth consecutive year.
André Lachapelle, Chairman of the Board is highly satisfied with CRCD’s results: “The businesses in our portfolio of investments impacting the Québec economy fared well this year, as shown by the return of 8.9%. On the downside, rising bond rates in 2013 restricted the return of our investments portfolio to 0.5%, which had an impact on our overall performance.” Mr. Lachapelle stated that, all in all, the shareholders who benefit from a tax credit of the Québec government can be proud of having made a concrete contribution to the growth of Québec businesses and thereby the development of Québec’s regions.
On a similar note, Marie-Claude Boisvert, Chief Operating Officer of Desjardins Business Capital régional et coopératif, the manager of CRCD, highlighted the importance for local businesses to have access to patient capital: “To meet the wide-ranging and ever increasing financing needs of entrepreneurs, CRCD is innovating, in collaboration with its manager, by using a number of levers of which it is the driving force. Accordingly, in 2013, an amount of over $167 million was disbursed to 119 businesses from CRCD’s entrepreneurial ecosystem. Entrepreneurs who are aiming steady growth cannot rest on their laurels and need resources to keep growing. It’s our mission to meet their needs, across Québec, support them and above all, help them achieve their ambitions.”
As at December 31, 2013, net assets amounted to $1,470.6 million and non-disbursed commitments totalled $227.6 million. Note that the renewal of the partnership agreement with the Caisse de dépôt et placement du Québec to create a new fund, Capital croissance PME II, led to a commitment by CRCD in the amount of $115 million, on par with its partner. The fund, which is an integral part of CRCD’s entrepreneurial ecosystem, launched its operations in January 2014. As at December 31, 2013, including all levers, the total commitments at cost amounted to $830.6 million, directly supporting growth in 362 businesses, cooperatives and funds.
Last, the date of sale of CRCD shares as well as the authorized capitalization amount for the 2014 issue is expected to be made public on March 28, 2014, at the Annual General Meeting to be held at the Québec City Convention Centre, starting at 10:30 a.m.
About Capital régional et coopératif Desjardins
With over 100,000 shareholders and $1,471 million in net assets, Capital régional et coopératif Desjardins (CRCD) is a public company managed by Desjardins Business Capital régional et coopératif. CRCD contributes to Québec economic development through several levers developed with its manager, with CRCD as the driving force. These levers form CRCD’s entrepreneurial ecosystem designed to value and nurture the best of Québec entrepreneurship. Directly or indirectly through its ecosystem, CRCD supports the growth of over 360 businesses, cooperatives and funds in various industries spanning all Québec regions, helping to create and retain 47,000 jobs. (capitalregional.com)
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