Power Sustainable raises initial C$210m for debut agri-food fund

Power Corp's Power Sustainable has secured an initial C$210 million for Lios Fund I, its inaugural agri-food private equity fund.

Power Corp’s Power Sustainable has secured an initial C$210 million for Lios Fund I, its inaugural agri-food private equity fund. The vehicle, which has a C$300 million target, was backed in the closing by Canada Life Assurance Company, Farm Credit Canada, Export Development Canada, Fonds de solidarité FTQ, BMO Capital Partners and CIBC. Earlier this year, Canadian food industry investor Lios Partners, led by managing partner Jonathan Belair, joined with Power Sustainable to become Power Sustainable Lios.

PRESS RELEASE

MONTREAL, June 15, 2022 /PRNewswire/ – Power Sustainable, a global multi-platform alternative asset manager investing in sustainable strategies, today announced that it has closed an initial $210 million of aggregate capital commitments for Lios Fund I, its inaugural agri-food private equity fund. Initial investors include The Canada Life Assurance Company, Farm Credit Canada (FCC), Export Development Canada (EDC), Fonds de solidarité FTQ, BMO Capital Partners and CIBC. The fund targets total capital commitments of $300 million and is expected to close in the third quarter of 2022.

Power Sustainable Lios invests in mid-market companies operating across the food value chain in North America, partnering with owners and operators to accelerate growth. Through majority or meaningful minority ownership participation, the fund aims to support companies who are well positioned to prioritize and improve sustainability across our food system, addressing changing consumer behaviours, constrained natural resources, and building greater resilience.

“We are thrilled to welcome an initial group of limited partners who also see sustainability as a powerful driver of value creation,” said Olivier Desmarais, Chairman and CEO of Power Sustainable. “We will support the next generation of North American companies leading the transformation of the food system while addressing consumers’ growing demand for more sustainable options, creating value for our clients, our portfolio companies and society.”

“As specialized agri-food investors, we believe our operating insights across the industry and deep sector experience position us as a partner of choice for agri-food companies, said Jonathan Belair, Managing Partner of Power Sustainable Lios. “Our primary objective is to support companies with our extensive sector knowledge and connectivity across North America to deliver strategic value well beyond capital, in support of accelerating sustainable growth and transformative change. We are delighted to welcome like-minded institutional partners into Lios Fund I.”

“FCC serves as a catalyst for Canada’s agriculture and food industry,” said Rebbecca Clarke, Vice-President and Treasurer at FCC. “This investment demonstrates our long-term commitment to promoting sustainability throughout the food value chain, which is vital to the success of our customers, the industry and our planet.”

“We are pleased to support Power Sustainable Lios on the creation of its private equity platform empowered to invest in medium-sized businesses innovating in the sustainable agri-food sector,” said Carl Burlock, Executive Vice President and Chief Business Officer, EDC. “From a trade perspective, agricultural exports are a significant contributor to our economy, and EDC is focused on enabling growth and investment into Canadian agri-food exporters in collaboration with partners like Power Sustainable Lios. Through these collaborations we can collectively meet the rising global demand for food while developing more sustainable ways to export food products around the world.”

“Our support of Lios Fund I is in direct alignment with the mission of the Fonds de solidarité FTQ, enabling economic growth and development in the agri-food sector. This fund will help agri-food companies innovating in the face of current challenges, building on our historical investments of nearly $1.3 billion in the sector,” added Dany Pelletier, Senior Vice-President, Private Equity and Impact Investments of the Fonds de solidarité FTQ.

Power Sustainable Lios is the latest investment platform of Power Sustainable, along with its energy infrastructure equity and sustainable China public equity platforms. For more information on Power Sustainable Lios, visit www.powersustainablelios.com.

About Power Sustainable

Power Sustainable is a global sustainable investment manager with offices in Canada, China, and the United States. We invest in companies and projects with the potential to deliver returns while contributing to decarbonization, social progress and quality growth. With approximately CAD $4.2B of assets under management, Power Sustainable deploys patient and purposeful capital in infrastructure, private equity, and public equities. For more information, visit www.powersustainable.com.