Jun 19, 2018
Helping mid-market companies take the next step: The Canadian Business Growth Fund is open for business
For many Canadian companies, taking crucial steps to grow from a mid-sized firm to a large business requires a little bit of a boost.
However, accessing growth capital can sometimes be a challenge, a problem that was highlighted in a 2017 report from the Minister of Finance's Advisory Council for Economic Growth. The Canadian Business Growth Fund (CBGF) is intended to address this gap by providing a new funding option to mid-sized businesses that will help Canadian companies grow, creating jobs and contributing to a vibrant, innovative and diversified economy in Canada. More broadly, this will help drive economic activity, productivity, exports and growth -- while helping to ensure Canadian businesses have an even greater opportunity to achieve scale and become global leaders.
"We need to create opportunities for the growth of our economy and for homegrown companies to flourish," says Barbara Hooper, Executive Vice President, Treasury & Balance Sheet Management and Corporate Development, TD Bank Group. "We're thrilled to be making an investment in the CBGF and supporting an initiative that provides entrepreneurs with new alternatives to help them expand."
"While many Canadian entrepreneurs have identified growth as their company’s primary objective, they find it difficult to secure the funding they need to achieve this while maintaining control of their businesses," explains George Rossolatos, Chief Executive Officer, Canadian Business Growth Fund. "Our goal is to help entrepreneurs scale up their mid-market businesses as a patient, minority capital partner. We’ve spent the last several months developing our strategy, honing our unique value proposition and building a network that is uniquely positioned to help Canadian entrepreneurs think big and grow. We’re excited to get started."
The CBGF is a new initiative jointly funded by Canada's leading financial institutions that is now accepting applications from interested mid-sized businesses that may be at this critical juncture. CBGF is an independent evergreen investment fund with an initial capital commitment of over $500-million, with the potential for aggregate capital commitments to increase to $1 billion in future years, depending on demand and fund performance.
In addition to capital, CBGF offers access to an unparalleled knowledge network. With support from Canada's leading financial institutions, businesses will gain deep experience in growth strategies and corporate finance, as well as access to talent networks that can help entrepreneurs overcome critical knowledge and talent gaps as their businesses expand.