Montreal, April 26, 2017─BDC Capital, the investment arm of the Business Development Bank of Canada (BDC), will accelerate support for Canadian asset-light high-growth SMEs by offering close to $2 billion in growth capital over five years to increase their innovation, productivity and globalization rate. This represents a 50% increase in the bank’s typical lending with respect to growth capital compared to the previous five years, denoting the bank’s continued effort in this asset class.
“We often see that high-impact companies are actively looking for growth capital to finance scale up projects, develop new products, hire and retain employees, and expand to new markets,” said Jérôme Nycz, Executive Vice President at BDC Capital. “In later stages of growth, we have also noticed unmet demand for minority equity tickets. Our high level of expertise and proven capacity to collaborate on deals with financial institutions in Canada, allows BDC to take on more risk and help entrepreneurs secure the growth capital required to pursue rapid growth opportunities.”
“Over the past five years, we deployed close to $1.2 billion dollars in growth capital via more than 750 transactions,” said Patrick Latour, Senior Vice President, Growth and Transition Capital, at BDC Capital. “This initiative is a natural continuation of our efforts to support Canada’s SMEs with their growth and transition projects. The capital will be deployed over five years and includes higher-risk solutions such as cash flow, mezzanine, and equity.”
BDC Capital also finances business transition projects via mergers, acquisitions and management buyins/buyouts. This offers business owners the opportunity to withdraw capital while maintaining ownership of the company, which is often the first step in a phased succession approach.
About BDC Capital
With more than $2 billion under management, BDC Capital is the investment arm of BDC, serving as a strategic partner to Canada’s most innovative and high potential firms. It offers a range of equity, venture capital and flexible growth and transition capital solutions to help Canadian entrepreneurs scale their businesses into global champions. To find out more, visit bdc.ca/capital.