CDPQ to acquire Innocap from National Bank of Canada

Caisse de dépôt et placement du Québec (CDPQ) has agreed to acquire an undisclosed controlling stake in Innocap Investment Management Inc., a Montréal based provider of managed account solutions. The investment will be made through a direct share purchase and the grant of a loan.

Innocap Investment Management Inc. is majority owned by National Bank of Canada (TSX: NA) with BNP Paribas SA (EPA: BNP) as a minority shareholder.

Caisse de dépôt et placement du Québec and Innocap management will acquire National Bank’s entire stake and BNP Paribas will remain as a shareholder of the company.

This transaction is expected to close in the first quarter of 2018.

photo credit: Innocap

News Release

La Caisse invests in Innocap, a Québec financial industry leader

PRIVATE EQUITY MONTRÉAL, DECEMBER 8, 2017

La Caisse de dépôt et placement du Québec ( “la Caisse”) announced today an investment in Innocap Investment Management Inc. (“Innocap”), a Montréal-based firm offering managed account solutions. The investment is made through the purchase of share capital and the issuance of a loan.

Benefiting from its expertise and its state-of-the-art technology, Innocap is a leader in the managed accounts industry, as well as in operational, financial and regulatory risk management solutions. As at October 31, 2017, the company and its subsidiaries managed US$5.7 billion in assets for institutional investors, financial institutions and fund managers in North America, Europe and Asia.

This transaction allows Innocap’s management team to become a shareholder alongside la Caisse and BNP Paribas, which has been a shareholder of the company since 2007. Furthermore, it is taking place in the context of National Bank of Canada’s sale of its entire stake in Innocap’s share capital.

“La Caisse’s expertise and international network will help accelerate the deployment of our growth plan and identify new business opportunities. This investment represents an acknowledgment of our team’s expertise and outstanding work. Lastly, I would like to thank National Bank for its support throughout the years,” stated François Rivard, President and Chief Executive Officer of Innocap.

“We are pleased to have strong partners who share our vision for Innocap’s future. La Caisse’s expertise and network, combined with the existing teams’ experience, are the strategic assets that will support the company’s growth in the long term,” added Gilles Guérin, member of Innocap’s Board of Directors and Chief Executive Officer of BNP Paribas Capital Partners.

“This stake in Innocap allows us to support the international growth of a Québec-based player that distinguishes itself through innovation, the quality of its team and its expertise. This transaction also provides us with an opportunity to support the development of a financial technology and data analysis company while supporting the transfer of Québec companies,” concluded Christian Dubé, Executive Vice-President, Québec at la Caisse.

This transaction is subject to usual closing conditions, including approval by relevant regulatory authorities. It is expected to close in the first quarter of 2018.

ABOUT INNOCAP
Since 1996, the Innocap Group has offered managed account solutions to a global institutional client base seeking high standards of governance. In addition to its structuring and due diligence expertise during manager selection, the group provides daily supervision of fund operations, customized risk management services and independent governance. Innocap’s model provides investors with in depth data transparency, including a breakdown of their assets, investment strategy compliance and centralized monitoring of service providers. Innocap sets itself apart in the industry through its expertise, flexibility and state-of-the-art technology.

ABOUT CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC
Caisse de dépôt et placement du Québec (CDPQ) is a long-term institutional investor that manages funds primarily for public and parapublic pension and insurance plans. As at June 30, 2017, it held $286.5 billion in net assets. As one of Canada’s leading institutional fund managers, CDPQ invests globally in major financial markets, private equity, infrastructure, real estate and private debt. For more information, visit cdpq.com, follow us on Twitter @LaCDPQ or consult our Facebook or LinkedIn pages.

ABOUT BNP PARIBAS CAPITAL PARTNERS
BNP Paribas Capital Partners, an entity of BNP Paribas Asset Management, is specialized in multi-managing, selecting and incubating managers in the alternative universe. On behalf of a customer base comprised of institutional clients, companies, private banks and high net worth individuals, BNP Paribas Capital Partners manages, advises and administers €6.6 billion of assets at September 30, 2017.

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For more information
MEDIA CONTACT
+1 514 847-5493
+1 866 330-3936 medias@cdpq.com
JONATHAN PLANTÉ
Manager, Business Development & Investor Relations, Innocap Investment Management Inc.
+1 514 390-7918
jonathan.plante@innocap.com


Ted Liu
Ted Liu, M.Sc. (Mining), MBA (Finance), is the Editor of Private Capital Journal, TechnologyMetals.ca, GoldSilverMetals.ca, and former Editor of Canadian Private Equity. Ted has been passionately tracking Canadian private capital industry since 1992, most recently served as Research Director for The Canadian Venture Capital and Private Equity Association (CVCA). Ted was the architect of CVCA infobase, and is the architect of sophisticated and advanced CPE Media Private Capital Dealbase. Ted is President of CPE Media Inc., Canada's independent, trusted and unbiased data provider tracking Canadian VC/PE, private capital industry and public market.
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