Desjardins wants to invest $500 million over five years in Quebec-based SMEs

business

Desjardins has announced the creation of the Desjardins Capital SME fund, which will be managed by Desjardins Private Wealth Management and Desjardins Capital.

The two fund managers expect to invest $100 million a year over the next five years in Quebec-based companies. Desjardins Private Wealth Management, which has offices in Montreal, Quebec City, and Ottawa, had $8.1 billion of assets under management as of June 30, 2017. Desjardins Capital, which is dedicated to supporting entrepreneurs, has $2 billion in assets under management and works with 430 companies across Quebec.

The firm expects to invest between $100,000 to $10 million per company in the form of equity or subordinated debt.
 

“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.

The firm expects to invest between $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 Cormier.

Photo via Unsplash

Jessica Galang

Jessica Galang

Jessica Galang is BetaKit's News Editor.