Following an event Toronto where several Canadian financial institutions announced the launch of the Canadian Business Growth Fund, Finance Minister Bill Morneau issued the following statement:
“The Government of Canada welcomes the announcement by Canada’s leading financial institutions to establish a business growth fund that will help ambitious Canadian companies get the capital they need to grow and succeed globally. This will help them create good, well-paying middle class jobs, and will grow Canada’s economy over the long term.
“I want to thank all of the participating institutions for their leadership in seizing upon this recent recommendation by the Advisory Council on Economic Growth, and for their hard work in turning good advice into a concrete reality.”
The Fund will target investing $1 billion over 10 years, starting with an initial commitment of more than $500 million, aiming to fill a capital need by offering minority equity investments in ambitious Canadian companies seeking to grow their businesses.
The Fund aims to fill a gap between the small-scale financing options generally available to entrepreneurs and smaller firms, and the range of sources available to larger, more established companies. A typical investment amount in each company that benefits from the Fund is expected to range between $3 million and $20 million.
Minister of Small Business and Tourism and Leader of the Government in the House of Commons Bardish Chagger added:
“By working together to invest in Canadian entrepreneurs, our major financial institutions are investing not only in Canada’s economy but in our country’s people.
“The Canadian Business Growth Fund will support the men and women working hard to grow companies and create more middle class jobs across the country. The entrepreneurs I’ve met from coast to coast to coast have been asking for access to exactly this kind of capital and mentorship. I can’t think of a better vote of confidence in the great potential of Canadians who own and work in small and medium-sized businesses.”
The Fund will apply commercial decision-making and discipline to investments, and will provide advice, mentorship and access to talent pools to help firms realize their full potential.
◾Second Report of the Advisory Council on Economic Growth: Unlocking Innovation to Drive Scale and Growth