June 5, 2023

The Queens County Citizen

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Business Transformation | Quebec creates a fund with seven “most famous” founders

Business Transformation |  Quebec creates a fund with seven "most famous" founders

(Montreal) With the financial participation of seven “most famous” business leaders, Quebec is in the process of setting up an investment fund of about one hundred million dollars to support companies that need to change their business model. business, The Canadian Press learned.

Stephen Roland
Canadian Press

Finance Minister Pierre FitzGibbon confirmed in an interview that the government would provide half the financing through a loan to Investment Quebec, which would vary between $ 50 million and $ 75 million. “There are companies that need to reconsider their business plan to consider post-Kovid innovation in terms of marketing,” he explained. Many companies need to reinvent themselves. ”

He said a team of seven entrepreneurs will fund the project. He did not want to identify them at the end of the year or before the end of the fund in early 2022. Daniel Labrake, investment banker at DNA Capital in Montreal, is the general manager of the fund. He was not one of the seven men, the minister directed.

Although the fund’s mission speaks of “recovery” assistance, it’s not about companies in financial trouble, but companies that need to change their model, he adds. Support is granted in the form of loans or equity investments.

The fund can invest “all sectors together”. “Seven people are skilled and we go to areas where at least one or two of them are comfortable. ”

The number of companies accepting investments has not been decided, but the minister estimates that it will be between 10 and 15 to ensure adequate oversight for investment committee members and to prevent scattering.

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The money invested by the government is part of a larger envelope of $ 300 million provided for the economic upgrade of Fall 2020. The Banque Nationale PME Growth Fund, which aims to support Quebec SMEs in their transformation digital, is an example of a fund created using these funds. There are still credits to help others financially, the minister assured.

“Model of the Future”

The minister is excited to work with these seven people who are “already managing companies”. “When the private sector invests money, they are very tough. The good news is, we’re going to have the money, not the government. ”

Mr. FitzGibbon seeks further cooperation between the government and large wealth (family office) managers. These companies manage the assets of clients with high net worth, often entrepreneurs who have sold the family business.

According to him, the experience of these entrepreneurs is an asset when determining the most promising investments for the Quebec economy. “These are people who have experienced entrepreneurship, those who have achieved success. It’s a huge experience.”

The minister wants to see the number of funds created in partnership with businessmen “expanded”. “We are ready to help the government, the family offices. This is the future. I trust a lot of private companies that have shareholders related to their business models. ”