VC and development fund aims to help province's economic recovery and digital transformation of SMEs
National Bank has announced the creation of a new venture capital and development fund to help support Quebec’s economic recovery following the COVID-19 outbreak, as well as the digital transformation of small and medium enterprises.
The National Bank SME Growth Fund, created in equal partnership with the provincial government, aims to raise up to $200 million in capital, with injections coming from the Quebec government and National Bank as well as private investors related to the bank.
“As part of the ongoing economic recovery, entrepreneurs will need access to various forms of capital to stimulate their growth,” said National Bank President and CEO Louis Vachon. “This equity capital fund will complement the bank financing offered to SMEs, supporting their projects and helping to ensure their continuity.”
The fund will be aimed at businesses with less than $200 million in assets, or a net worth below $100 million operating in any industry and at any stage in their business cycle. With the aim of boosting private investments through the participation of several types of investors, it is meant to help with SME owners’ transfer, growth, and acquisition plans in Quebec, elsewhere in Canada, or abroad.
“Today, by participating in the creation of the National Bank Fund, our government is continuing to invest in the future of Quebec businesses,” said Pierre Fitzgibbon, Minister of Economy and Innovation and Minister Responsible for the Lanaudière region. “Thanks to this partnership, they will have the opportunity to successfully complete their digital transformation and achieve their growth and development goals.”
National Bank Investments will take on the responsibility of managing the fund, which will be marketed in the coming months.