Desjardins announces $500 million Desjardins Capital SME fund

Desjardins today announced the creation of a new Desjardins Capital SME fund to provide up to $500 million to small and medium businesses over the next five years.

The fund is the joint effort of Desjardins Private Wealth Management and Desjardins Capital, both of which have committed to an initial capitalization of at least $100 million/year.

Desjardins Private Wealth Management had $8.1 billion of assets under management as of June of this year, with 110 multidisciplinary experts in offices in Montreal, Quebec City and Ottawa. Desjardins Capital focuses on supporting and nurturing Quebec entrepreneurship, with assets of C$2 billion currently under management. It has nearly 45 years of experience and has helped contribute to the longevity of more than 430 companies and cooperatives in various sectors from across Quebec, in addition to helping create more than 68,000 jobs in that time.

READ ALSO: Quebec SMEs to gain access to $90 million more in funds

“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 new fund, which will be managed by Desjardins Capital, is just what our SMEs are asking for.”

“These two Desjardins Group managers will work together to create value for Quebec’s business owners, CRCD’s 101,000 shareholders and the investors who rely on Desjardins to help them make sound investment decisions.”

Desjardins anticipates the Desjardins Capital SME fund could commit up to $500 million over the next five years, with investments ranging from $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 Mr. Cormier.

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