The government will provide half of the funding through a loan to Investissement Quebec which will range from $50 to $75 million, Economy Minister Pierre Fitzgibbon confirmed in an interview. He explains that there are companies that need to realign their business plan keeping in mind the post-COVID novelty in terms of marketing. Many companies have to reinvent themselves.
He adds that a group of seven entrepreneurs will also fund the project. He did not want to reveal their identities before the fund’s closing, scheduled for the end of the year or the beginning of 2022. Investment banker Daniel Labric, of DNA Capital in Montreal, is the fund’s lead manager. Not among the seven personalities, the minister identifies.
Although the mission of the fund is to remember to help to recover
He adds that these are not companies in financial difficulty, but that they have to change their model. Support will be given in the form of loans or equity investments.
The fund can invest in All sectors combined
. Of course, the seven people have experience and we’ll go to areas where at least one or two feel comfortable.
The number of companies that will receive investments has not been specified, but the minister estimates it will be from 10 to 15, to allow members of the investment committee to ensure adequate monitoring and no dispersal.
The money invested by the government is part of a larger envelope of $300 million made available at the Fall 2020 Economic Update. The National Bank for Small and Medium Enterprises Growth Fund, which aims to support small and medium-sized businesses in Quebec in digital transformation is an example of a fund created thanks to for these investments. The Minister confirms that there are still funds to finance others.
“model of the future”
The Minister is excited to cooperate with these seven people who already ran companies
. When the private sector invests money, they are very strict. The good news is that we’ll get paid with the rest of us, and just not the government will bear it.
Mr. Fitzgibbon wants greater cooperation between government and large wealth managers (family office). These companies manage the assets of high net worth clients, often the entrepreneurs who sold the family business.
According to him, the experience of these entrepreneurs is an advantage when it comes to identifying the most promising investments for the Quebec economy. These are people who have experience in entrepreneurship and have succeeded. It’s a huge experience.
The minister wants to see publish or broadcast
Number of funds created in partnership with entrepreneurs. We are open, in government, to help family office. This is the future. I believe a lot in private companies that have stakeholders that are relevant to their business models.
Sophie Laurent is a contributor to Vaughantoday.ca, covering a wide range of topics including local news, politics, business, technology, sports, entertainment, and lifestyle. She focuses on delivering clear, balanced reporting that helps readers stay informed about current events and issues that matter to their communities. Sophie is committed to presenting accurate information, practical insights, and relevant stories in a straightforward and reader-friendly manner, making complex topics accessible to a broad audience.