BDC Capital announced today that it intends to invest $250 million in Growth Equity over the next five years, a minority equity offering for high potential, rapidly growing businesses.
Claude Miron has been appointed Vice President responsible for overseeing the rollout of BDC Capital’s growth equity offering. Miron replaces Elmer Kim who recently left BDC Capital.
Miron, formerly VP of Private Equity with Desjardins Venture Capital responsible for its equity and mezzanine investments, joined BDC Capital in December 2015 as VP of Credit & Investment Risk Management.
BDC Capital’s new offering aims to fill a gap between small-scale financing options generally available to smaller firms, and the range of sources available to larger, more established companies.
“Mid-sized, high-growth companies are constantly looking for flexible, patient financing alternatives and this is exactly what we are proposing with today’s announcement,” said Jérôme Nycz, Executive Vice President for BDC Capital. “Our objective is to be a long-term, management-friendly partner that helps drive the growth of high-potential companies across Canada. We want to give ambitious and talented entrepreneurs the means to excel and grow in order to create a new generation of Canadian champions.”
The offering is dedicated to businesses from all sectors across Canada that have at least $5 million to $10 million in revenue, a strong positioning as leaders in their industry and are seeking capital for organic growth or acquisitions. Investments will come as minority equity ranging from $2 million to $25 million for equity withdrawals, owner transitions (family or management buyout), and/or expansion purposes. Depending on the company’s capital needs, BDC Capital can lead, participate or be the sole investor of the businesses.
“During the past five years, BDC Capital has invested nearly $1.2 billion in growth capital, financing approximately 750 transactions ranging from mezzanine to working capital,” Patrick Latour, Senior Vice President, Growth and Transition Capital. “Today’s announcement fits within BDC’s recent commitment to offer $1.8 billion to increase support for asset-light high-growth firms over the next five years.”