AlterInvest Fund, a partnership between BDC and the CDPQ

Five years after setting up the AlterInvest Fund, the Business Development Bank of Canada (BDC) and the Caisse de dépôt et placement du Québec announced today that their partnership is demonstrating positive results. Created in 2003 to support the growth of small and medium-sized businesses (SME), the AlterInvest fund has invested $453 million in 371 SMEs in different industries.

The fund, with an average investment of $1.2 million, meets a variety of financing needs, including support for market development, transfer of ownership and working capital for growth. Furthermore, half of the businesses supported by the fund are located outside major urban areas, where access to this type of financing is more limited.

“Since its creation, hundreds of entrepreneurs have benefited from the support of BDC and the Caisse de dépôt et placement du Québec through the AlterInvest fund. With $168 million still in the fund, we are able to continue to invest in  SME growth, said Jacques Simoneau, Executive Vice President, Investments at BDC. “The existence of an investment fund like AlterInvest is particularly important in this difficult economic environment where access to financing is limited. We continue to be able to respond to SMEs that have solid business proposals and good long-term growth prospects,” he explained.

As for the Caisse de dépôt et placement du Québec, it is leveraging its financing for SMEs through this indirect investment strategy. “We are proud to support the talent, creativity and entrepreneurial spirit of hundreds of growing SMEs, nearly half of which are based in Quebec,” said Normand Provost, Executive Vice-President, Private Equity at the Caisse. “Through this fund, 161 Quebec SMEs have shared over $200 million to date. Because of this partnership and the access it gives us to investment opportunities through BDC’s extensive branch network, we can optimize our support for entrepreneurs that need financing under $2 million in all sectors of the economy right across Quebec,” he added. This partnership is one aspect of the investment strategy of the Caisse, which is one of the leading investors in Quebec, with over $23 billion in assets in Quebec companies as at December 31, 2007.

The AlterInvest fund is a limited partnership between BDC and the Caisse, whose mission is to invest in SMEs in most sectors by providing subordinate or equity financing. To learn more about the AlterInvest fund’s activities since 2003, see “A partnership dedicated to SMEs” at www.bdc.ca or www.cdpq.com.

Entrepreneurs who would like more information about the financing available through the AlterInvest fund can contact a BDC branch in their area. To find the closest branch, check the Our branches section on BDC's website or call BDC customer service at 1 877 BDC BANX (232 2269).

About BDC
BDC is Canada's business development bank. From 100 offices across the country, BDC promotes entrepreneurship by providing highly tailored financing, venture capital and consulting services to entrepreneurs. BDC works with entrepreneurs in all industries, through all economic cycles, and focuses on helping small and medium-sized businesses with their development projects, both local and global. BDC manages a $10.6-billion loan and investment portfolio, and serves more than 28,000 clients across the country. Small and medium-sized businesses make up 99.7% of all employer businesses in Canada. For more information, visit www.bdc.ca.

About the Caisse de dépôt et placement du Québec
The Caisse de dépôt et placement du Québec is a financial institution that manages funds primarily for public and private pension and insurance plans. As at December 31, 2007, it held $155.4 billion of net assets. One of the leading institutional fund managers in Canada, the Caisse invests in the main financial markets as well as in private equity and real estate. For more information: www.cdpq.com.