CIC Capital Canada launches $500 million growth fund
CIC Capital Canada today unveiled a new US $500 million North American growth fund. US$150 million of that has been dedicated to Canada, mainly for investment in Quebec and Ontario companies.
CIC Capital Canada has been established in Montreal since 2010 and is a member of the French banking group Crédit Mutuel CM11-CIC. CIC Capital has also managed the Emerillon Capital venture capital fund, a partnership with Desjardins, since 2013. This fund holds equity positions in a dozen technology companies in Quebec and Ontario and was an investor in Maluuba, which was acquired by Microsoft earlier this year.
The new fund will target mainly $5-20 million deals in growth equity and buyout investments in Canada. Preferred sectors include food and beverage, healthcare, information and communications technologies, specialty manufacturing, business services and aerospace. CIC Capital usually invests as a co-investor and always as a minority shareholder, leaving entrepreneurs and business leaders with broad autonomy to pursue their vision and strategy.
“The launch of this new fund is great news for local entrepreneurs, particularly for the leaders of family businesses who seek a solid and stable partner, a source of patient and flexible capital, and an experienced team to support them for the long term,” stated Ludovic André, president of CIC Capital in Canada and managing director of Emerillon Capital.
CIC Capital invests its own capital, providing a source of evergreen capital (up to ten years), making it possible to match the investment period with industrial time, and avoid pressure on portfolio companies typically associated with investment liquidity considerations. This confers broad flexibility to tailor the amount, duration and use of investment capital to match the real needs of entrepreneurs, while having the ability to reinvest as required.
“Since we do not have to return invested capital to limited partners when a traditional investment vehicle reaches term, we have full freedom to reinvest in our portfolio companies,” said Christophe Tournier, member of the CM-CIC Investissement management board. “The evergreen nature of our own capital, combined with our international development, represent key differentiators in the private equity space.”
To complement its Montreal presence, CIC Capital plans to open a Toronto office and to progressively grow its footprint south of the border with offices in Boston and New York.
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