Canadian financial cooperative Desjardins Group has unveiled a new fund to invest in Québec-based small businesses. The Desjardins Capital SME fund will be initially capitalized at about $100 million annually by Desjardins Private Wealth Management and Desjardins Capital and ultimately invest about $500 million over five years. It is expected to target equity and subordinated debt investments of $100,000 to $10 million to a range of developing Québec companies. Desjardins Capital oversees several private equity and venture capital funds, including retail fund Capital régional et coopératif Desjardins.
Desjardins Group’s innovative Desjardins Capital SME fund will support the growth of SMEs across Quebec
An estimated $500 million investment over five years
QUÉBEC CITY, Oct. 26, 2017 /CNW Telbec/ – “We’ve listened to our clients who want to diversify their investment portfolios. We’ve also listened to business leaders in Quebec who are looking for patient investors to ensure sustainability and ownership transfers, while protecting Quebec businesses,” said Guy Cormier, President and CEO of Desjardins Group. “To meet these needs, two of our managers, Desjardins Private Wealth Management and Desjardins Capital, have joined forces to create the Desjardins Capital SME fund. Both partners are committed to an initial capitalization of at least $100 million/year. The new fund, which will be managed by Desjardins Capital, is just what our SMEs are asking for.”
“These two Desjardins Group managers will work together to create value for Quebec’s business owners, CRCD’s 101,000 shareholders and the investors who rely on Desjardins to help them make sound investment decisions.”
$100,000 to $10 million per company
Desjardins anticipates that the Desjardins Capital SME fund could commit up to a $500 million in investments over the next five years. Investments could range from $100,000 to $10 million per company in the form of equity or subordinated debt.
“The appeal of private investments and the low interest rate environment are leading investors to seek access to asset classes such as financing to grow their SMEs. And it’s good to know that they can count on the expertise of our new fund manager, Desjardins Capital, known for managing development capital across Quebec,” said Mr. Cormier.
About Desjardins Private Wealth Management
Discretionary portfolio management of Desjardins Private Wealth Management is provided by Desjardins Investment Management Inc., which had $8.1 billion of assets under management as at June 30, 2017. Desjardins Private Wealth Management is a subsidiary of Desjardins Group with 110 multidisciplinary experts in offices in Montreal, Quebec City and Ottawa. Desjardins Private Wealth Management caters to high-net worth clients, offering coordinated and personalized service based on expertise and quality service. Integrated services ranging from portfolio management to concierge services, tax optimization, intergenerational wealth transfers, financial services and financing, international services, philanthropic support, insurance and assistance services are all available in one place. Desjardins Private Wealth Management was named “Canada’s top private management firm” by Global Banking & Finance Review in 2016 and 2017.
About Desjardins Capital
Nearly 45 years strong, Desjardins Capital (previously Desjardins Business Capital régional et coopératif and Desjardins Venture Capital) has a mission to value, support and nurture the best of Quebec entrepreneurship. With assets under management of C$2 billion, Desjardins Capital helps contribute to the longevity of more than 430 companies and cooperatives in various sectors from across Quebec. In addition to helping to create and maintain more than 68,000 jobs, this subsidiary of Desjardins Group offers business owners access to a large business network while also serving as a source of complementary funding that supports business growth. Desjardins Capital manages Desjardins Capital PME and Capital régional et coopératif Desjardins (CRCD), a public company with more than 101,000 shareholders. For more information, visit Desjardins Capital.
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