CRCD and Caisse upsize CCPME II to $320M

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By Ted Liu

Capital régional et coopératif Desjardins (CRCD) and Caisse de dépôt et placement du Québec have committed additional $90 million to Capital croissance PME II (CCPME II).

Capitalized in equal shares by CRCD and Caisse and CRCD, Capital croissance PME funds offer SMEs across Québec financing for growth. Desjardins Business Capital régional et coopératif, formerly Desjardins Venture Capital, is the fund manager.

CCPME I was capitalized at $200 million in August 2010 and was upsized to $220 million. CCPME II was initially capitalized at $230 million in January 2014.

The new $90 million investment brings CCPME funds’ total capitalization to $540 million.

As at December 31, 2016, total investments made by CCPME I and CCPME II amounted to $374 million in 322 companies throughout Québec.

“Many Québec SMEs that are among the finest in their field are undercapitalized because they rely mainly on debt to obtain capital,” said Luc Ménard, Chief Operating Officer at Desjardins Business Capital régional et coopératif. “This approach hinders their development and makes them vulnerable to acquisition by foreign competitors. Equity investments, on the other hand, help ensure their longevity. For CCPME investments, we’ve created the SME Equity program, which offers more flexible governance along with a shorter agreement that’s simpler and less costly.”

“La Caisse is active at every stage of Québec companies’ growth, either through direct investment or the funds we support. Over the past seven years, the CCPME fund has tangibly contributed to the growth of hundreds of promising small businesses in Québec,” said Christian Dubé, Executive Vice-President, Québec at la Caisse. “Our involvement in Capital croissance PME is a vital part of our commitment to generate growth throughout Québec and support a large pool of SMEs, some of which will become the champions of tomorrow.”

photo credit: Gestion Brasa, CCPME