Caisse de dépôt et placement du Québec has created two new funds to build on its existing offer available to Quebec-based companies.
The funds — Fonds Croissance CDPQ and Fonds Relève CDPQ — total $500 million and will support companies seeking to grow through international expansion or having reached the business transfer stage.
“We have been supporting Quebec companies in their international expansion projects for several years already,” said Christian Dubé, executive vice-president, Quebec at Caisse, in a news release. “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 Quebec companies in the global marketplace.”
The Fonds Croissance CDPQ, totalling $250 million, will invest by increments of $10 to $100 million, using the financial vehicle best suited to a company’s situation. 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.
Both funds 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; and a clear international growth strategy.
With the exception of real estate, all business sectors are eligible.
“These two new funds are additional vehicles to help us build the next generation of Quebec’s successful businesses, while generating a return that meets our clients’ needs,” said Dubé.
Caisse has also announced it has renewed Michael Sabia’s mandate as president and chief executive officer for four years, until March 31, 2021. No changes were made to his compensation.