Fonds de solidarité FTQ and CDPQ Invest $60 Million in BDG Appalaches III Fund

The Fonds de solidarité FTQ (“Fonds”) and global investment group CDPQ today announced a joint investment of $60 million in the first round of funding for the Appalaches III Fund, created by BDG & Partners (“BDG”), a Québec-based private equity fund that aims to create value by investing in mid-sized companies. More than $240 million was raised in this round.

The BDG Appalaches III Fund (“BDG III”) is a private equity fund based in Montréal, whose objective is to acquire controlling interests in Canadian SMEs operating in traditional sectors, including manufacturing, food, distribution and specialized services, with a value creation approach focused on active operational management.

“Business transfer is a major challenge for companies, and the positive contribution of investment funds should not be underestimated. Our $30 million investment in the BDG Appalaches III Fund is fuelled by our desire to do more to keep our head offices and expertise in Québec, and to help local businesses thrive. When everyone works together, the Québec economy benefits tremendously,” explained Philippe P. Huneault, Vice-President, Private Equity and Impact Investing, Technology and Fund Management, and Chief International Business Development Officer, at the Fonds de solidarité FTQ.

“This new investment in the Appalaches III Fund created by BDG & Partners, a Montréal-based firm that targets mid-sized companies in several important sectors, allows us to commit our constructive capital to a key niche of our economy,” said Kim Thomassin, Executive Vice-President and Head of Québec at CDPQ. “For us, this is an opportunity to support both the Québec asset management industry and the companies in which it invests.”

“We are proud to welcome the Fonds de solidarité FTQ and CDPQ, two prominent institutions in the investment field, among our investors. Their confidence in our strategy is a key step in BDG’s development, and their support allows us to strengthen our impact in the growth and development of the SMEs in which we invest,” said BDG CEO Christian Turgeon.

For CDPQ, this investment is part of its ambition to increase the amount entrusted to Québec managers to $8 billion by 2028 in order to support local financial expertise and spur the growth of Québec’s asset management industry. Over the next four years, CDPQ hopes to more than double the amount entrusted to local fund managers.