BDC Capital Growth Equity Partners Launches Second Fund to Fuel Growth for Canada’s Mid-Market
Montreal, May 17, 2021 – Today, BDC Capital announced the launch of Growth Equity Partners Fund II, committing an additional $250 million in capital to support Canadian entrepreneurs. The Fund will build on the success of its initial investment strategy by partnering as a minority equity investor with strong Canadian businesses to bridge the financing gap between late-stage venture capital and larger, more mature companies. Fund II brings the amount under management by BDC Capital’s Growth Equity Partners to $425 million, all of which is aimed at empowering Canadian entrepreneurs to accelerate their growth strategies and scale into global champions.
Fund II will provide capital in the form of minority equity, from $3 to $35 million, to bolster working capital for growth, innovation, and acquisitions. As a direct equity investor, the Fund’s dedicated investment professionals will also work alongside management teams and owners to facilitate ownership transfers, succession planning, shareholder liquidity, and business consolidation.
“Growth Equity Partners is excited to launch Fund II to accelerate entrepreneurial growth in Canada. Our original investment thesis has resulted in over $775 million of revenue growth and the creation of over 5,400 jobs. Our Fund I investee companies more than doubled in size in less than four years – providing significant value to all stakeholders,” said Claude Miron, Managing Partner, Growth Equity at BDC Capital. “More importantly, it enabled Canadian entrepreneurs to initiate a transition towards the next generation of owners while retaining a substantial upside in the value they created. Our goal with Fund II remains the same – to unlock ownership transition challenges and help businesses scale into national and global leaders in their field.”
Growth Equity Partners offers an attractive financing alternative to mid-market businesses, a critical segment of Canada’s economy, by allowing entrepreneurs to retain operational and financial control. With a national network and local accessibility, the Growth Equity Partners team establishes long-term partnerships with Canadian businesses and their owners. The team provides tailored strategic advice and flexible management-friendly structures, so entrepreneurs can adapt to a constantly evolving business landscape and realize their full potential.
Fund II will continue the momentum and stellar track record of Fund I. Having launched Fund I in 2017, Growth Equity Partners has invested $175 million in 18 Canadian companies, with capital being used to support organic growth, acquisitions, and ownership transfers. These partnerships include a recently completed $14 million investment in LiveBarn, the world’s largest on-demand broadcaster of amateur sports, as well as a significant re-investment in Budge Studios, a leading youth-oriented digital content developer.
Growth Equity Partners Fund II made its first new platform investment in Pliteq Holdings Inc., an Ontario based global leader in commercial sound control building products. With sales in over 35 countries today, the company’s patented and certified products are trusted by architects, builders and acoustical consultants worldwide in end-markets including multi-family residential, office, fitness, sports recreation and entertainment. This initial Fund II investment positions Pliteq to accelerate investments in new products and innovations while further building its global sales force.
Growth Equity Partners has a growing team of 16 investment professionals based in Montreal, Toronto and Vancouver and is actively looking for investment candidates across the country for Fund II.
About BDC Capital
BDC Capital is the investment arm of BDC, the bank for Canadian entrepreneurs. With over $3 billion under management, BDC Capital serves as a strategic partner to the country’s most innovative firms. It offers businesses a full spectrum of capital, from seed investments to growth equity, supporting Canadian entrepreneurs who have the ambition to stand out on the world stage. Visit bdc.ca/capital.