Desjardins Private Wealth Management and Desjardins Group have established the Desjardins Capital SME Fund in response to the growing demand among clients for alternative investment strategies.
Desjardins CEO and president Guy Cormier said both partners are committed to an initial capitalization of at least $100 million per year.
"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," he said.
Desjardins Capital will manage the new fund and will work with Desjardins Private Wealth Management to create value for business owners, shareholders of Desjardins' Capital régional et coopératif Desjardins (CRCD), and investors.
The group anticipates the fund to invest $500 million over the next five years, with individual 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," Cormier said.
The fund adds to Desjardins Private Wealth Management's $8.1 billion of assets under management as of June this year and to Desjardins Capital's $2 billion.
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