The Société Innovatech Régions ressources was converted into a mixed capital corporation. The private sector (Desjardins) will contribute $30 million, which will make it possible to double the existing portfolio.
The process is under way in respect of the Innovatech corporations in the Québec City and Sherbrooke regions
Encourage private-sector funds and attract more extensive foreign investments
As of December 31, 2004, the CDPQ had assets totalling $174.7 billion under management, making it Canada’s biggest institutional fund.
The CDPQ has made available venture capital in recent years. In October 2004, it adopted a new venture capital investment strategy by investing more extensively through private-sector partners whose performance ranks in the first or second quartile.
The CDPQ wishes to thus enhance its performance but also to help give an impetus to the Québec venture capital industry.
There are three retail funds in Québec that play a key role in the industry:
the FSTQ and Fondaction, which are labour funds;
Capital régional et coopératif Desjardins (CRCD), attached to Desjardins.
In 2004, investments made by these funds accounted for 42% of all investments made in Québec. Foreign, governmental and private-sector investments trailed far behind, i.e. 16%, 15% and 8%, respectively, in 2004.
Until now, the three retail funds have hardly invested in private independent funds in Québec and to an even a lesser extent abroad.
The government has set as its objective to increase foreign investment. Changes in the investment standards governing retail funds and the CDPQ’s strategy are concrete examples of this commitment.
The government is also supporting an event designed to draw closer together Canadian and American venture capitalists. In 2004, 55 American venture capitalists and nearly 40 Canadian venture capitalists attended the Canada-US Venture Capital Conference.
The event’s partners want the 2005 gathering to initiate a genuine North American venture capital summit conference in which venture capitalists and pension funds participate.