BDC Capital commits $250M in growth equity for smaller firms
Directed at businesses across Canada that have at least $5 million to $10 million in revenue.
MONTREAL — The Business Development Bank of Canada (BDC) is investing $250 million in growth equity over the next five years, a minority equity offering for high potential, rapidly growing businesses.
Investment arm BDC Capital is targeting the gap between small-scale financing available to smaller firms and the range of sources available to larger companies.
Industry veteran Claude Miron has been appointed vice-president responsible for overseeing the rollout of the offering. He replaces Elmer Kim who recently left BDC Capital after spending the last year successfully launching the growth equity practice and team.
The financing is directed at businesses across Canada that have at least $5 million to $10 million in revenue, a leading position in their industries and seek capital for organic growth or acquisitions.
Investments will range from $2 million to $25 million for equity withdrawals, owner transitions and expansions.
Depending on the company’s capital needs, BDC Capital said it can lead, participate or be the sole investor of the businesses.