The Caisse de dépôt et placement du Québec and Capital régional et coopératif Desjardins have announced $15.5 million in investments across 15 Quebec companies. This is the continuation of a partnership that was announced between the two organizations in 2010 to provide financial support to Quebec-based small and medium-size businesses (SMBs).
In 2010, Desjardins Group and the Caisse announced a $600-million agreement aimed at supporting the expansion and growth of Quebec SMBs. The first part of the agreement involves a $200-million fund to meet the financing needs of small Quebec companies, primarily in the form of subordinated loans of less than $3 million. The second component involves $400 million for the financing of successful medium-size companies with good growth and profitability potential.
Since launching the partnership, close to $100 million in funding has been provided to 40 companies across the province. This latest round of financing includes financial support for companies focused on industries including technology, market research, manufacturing and tourism.
“Investing in Quebec SMBs that have high growth potential and that stand out within their industry is an important part of our Quebec economic development strategy,” explained Luc Houle, senior vice-president, investments, with the Caisse. “The partnership with Desjardins enables us to seize attractive investment opportunities across the province, and we are proud to be contributing to the expansion of Quebec companies of all sizes and from a range of industry sectors.”
The announcement comes as the Caisse takes flak from the Parti Québécois for not doing enough to advance Quebec’s economic development. On Monday, party members criticized the Caisse for lending $211 million to Montreal-based Kruger Products LLP to expand a tissue mill it operates in Tennessee. Kruger had previously been studying the possibility of instead expanding its plant located north of Montreal, a move that would have created jobs in the province.
“Quebec companies must go to where the markets for their products exist and cannot rely entirely on the Quebec market,” said Normand Provost, senior vice-president, private equity, with the Caisse, about the decision. “We firmly believe that one of the ways in which the Caisse can help develop these Quebec job-generating champions is to support them in their expansion into new markets. We are acutely aware of the importance of encouraging the emergence of a new generation of Quebec companies eager to spread their wings and, over time, generate economic benefits for Quebec.”