The Caisse de dépôt et placement du Québec, the Solidarity Fund QFL and the Québec government join forces to create the Teralys Capital Fund
The Caisse de dépôt et placement du Québec, the Solidarity Fund QFL and the Québec government today confirmed the creation of the Teralys Capital Fund, which will finance private venture capital funds that invest in technology companies in sectors that include life sciences, information technology and clean technology.
The creation of the Teralys Capital Fund is an initiative of the Caisse de dépôt et placement du Québec and the Solidarity Fund QFL, which are each contributing $250 million. The Québec government is contributing $200 million through Investissement Québec. The fund will also solicit other institutional and private investors to raise an additional $125 million, for a total objective of $825 million.
“For the Caisse, this announcement is an important stage of the venture capital strategy whose first phase was put in place in 2004,” stated Michael Sabia, President and Chief Executive Officer of the Caisse de dépôt et placement du Québec. “The creation of this fund of funds is a new initiative that will enable us to use a common strategy to enhance the impact of our efforts and attract private investors through sound diversification. By confirming our involvement in this new phase, we are completing an initiative begun more than a year ago. I am especially pleased to announce it today, in a context in which Québec’s companies have an even greater need for access to capital. This initiative reflects the Caisse’s commitment to investing in innovative technology companies,” he added.
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“It is important for the Solidarity Fund to develop this sector of activity, and that is why we have invested almost $2 billion in it over the past 25 years, in addition to having worked with the Caisse and the government to put in place a new business strategy in 2004. The strategy not only attracts foreign capital to Québec, but also enables Québec companies to develop business relations with foreign companies. Our financial ecosystem has all the attributes to anchor Québec in the components of the knowledge economy: from education to R&D, product development and marketing. With the creation of the Teralys Capital Fund, we are starting the second phase of the strategy, and this stage will be instrumental in ensuring the success of our entrepreneurs. Our investment in this new fund is in line with our determination to support Québec companies at all phases of their development. We are proud to continue our commitment with the same major economic players,” stated Yvon Bolduc, President and Chief Executive Officer of the Solidarity Fund QFL.
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“This partnership meets our objective of mobilizing to help Québec companies set themselves apart and start preparing right away for a strong, sustainable recovery,” stated Raymond Bachand, Minister of Finance and Minister of Economic Development, Innovation and Export Trade. “With its size, the fund will provide a powerful economic lever for our technology companies and will help ensure the development of our leadingedge sectors, in Québec and elsewhere,” he explained.
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Québec has more than 9,000 technology companies with almost 220,000 employees and annual revenues of $26.5 billion.
“The creation of the Teralys Capital Fund is excellent news for Québec’s economic development and our technology companies,”
Mr. Bachand concluded.falsefalsePleine largeurfalse
The fund is one of the mobilizing economic measures set out in the 2009-2010 budget announced by the Québec government on March 19.
With the best business practices, the new fund should appeal to private Canadian investors and also attract foreign investors to Québec, encouraging the formation of international partnerships. The partners have selected Jacques Bernier, a recognized Québec venture capital manager, to oversee the fund. Until only recently he was Strategic Adviser to the Solidarity Fund QFL, which he joined in 2004 as Senior VicePresident, ICT. Mr. Bernier has in-depth knowledge of the venture capital sector and played a key role in the development and implementation of a new approach to venture capital in Québec. As an entrepreneur and an institutional investor specializing in technology innovation in Québec, Mr. Bernier has been directly involved in the startup of a dozen technology companies.
ABOUT THE CAISSE
The Caisse de dépôt et placement du Québec is a financial institution that manages funds primarily for public and private pension and insurance plans. It held $120.1 billion of net assets as at December 31, 2008. As 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: cdpq.com.
About the Solidarity Fund QFL
With net assets of $6.2 billion as at November 30, 2008, the Solidarity Fund QFL is a development capital company that through its RRSP channels the savings of Quebecers into investments in all sectors of the economy to help create and maintain jobs and to further Québec's economic growth. The Fund is a partner, either directly or through its network members, in 1,881 companies. It has nearly 575,000 shareholders and has helped, on its own or with other financial partners, to create, maintain and protect more than 126,000 jobs. For more information: www.fondsftq.com
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For more information
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Josée LagacéSenior Press Relations and Communications AdviserSolidarity Fund QFL514 850-4835
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Anne-Sophie DesmeulesPress AttachéOffice of the Minister of Finance, Minister of Economic Development, Innovation and Export Trade and Minister Responsible for the Montréal Area418 691-5650