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Creation of a $100-Million Fund
FIER Partners Invests $10 Million in the Rho Canada Venture Capital Fund
Montréal, May 30, 2007 - The Minister of Economic Development, Innovation and Export Trade and Minister of Tourism, Raymond Bachand, the CEO of FIER Partners, L.P., Sylvie Pinsonnault and the Chairman of the Board, Jean Cyr, have announced a new investment by FIER Partners in Rho Canada, a $100-million fund that will support young companies in the information technology and telecommunications.
“By making use of effective levers such as FIER Partners and with the contribution of our largest institutional investors, the government intends to support economic sectors that will help Québec to improve its position in relation to global competition. With the addition of the expertise and vitality of our businesspeople, we have the ingredients needed for new companies in the knowledge-based economy to flourish, here and internationally and thus contribute to Québec's economic prosperity,” Mr. Bachand noted.
“FIER Partners is more than happy to contribute $10 million to the total capitalization of this initial Canadian fund launched by the prominent American investment firm, Rho Capital Partners. In setting up this project, it obtained strategic support and major participation from the Fonds de solidarité FTQ and the Caisse de dépôt et placement,” Ms. Pinsonnault said.
“We are very pleased with the involvement of our Canadian partners who, like FIER Partners, have helped us raise $100 million in capital for Rho Canada that will be invested mainly in young companies in Québec and Ontario ,” Antoine Paquin, senior partner of Rho Canada Venture Capital mentioned.
The Rho Canada fund seeks pre-commercial investments in the semi-conductor, software and other specialized technology fields. It is one of the few Canadian funds based in Québec that has a close relation with a first-quartile American fund like Rho and is led by a management team that has enjoyed much entrepreneurial success in the past. Consisting of Jeff Grammer and Antoine Paquin, the Rho Canada team will add significant value to the companies in which it invests by providing them with acces to, among others, strategic partners, potential customers around the world and American venture capital funds.
“The Rho Canada Fund will concentrate on start-up and pre-commercialization, an under-developed investment segment midway between the seeding and start-up funds in which FIER Partners is already involved,” added Jean Cyr, Chairman of the Board of FIER Partners.
FIER Partners is one of three components of the Regional Economic Intervention Fund (FIER) set up by the Québec government. It consists of a limited partnership whose initial capitalization of $180 million is provided by IQ-FIER, a subsidiary of Investissement Québec, for $90 million, and by three tax-advantaged funds: the Fonds de solidarité FTQ ($50 million), Capital régional et coopératif Desjardins ($25 million) and Fondaction, the CSN development fund for cooperation and employment ($15 million).
FIER Partners L.P. has $85 million available to support the creation of sector development funds that make equity or quasi-equity investments in start-up companies. The limited partnership contributes one dollar for every two dollars sourced from private investors, so that the total capitalization of the sector funds may ultimately reach $240 million. Lastly, FIER Partners has a $100-million envelope to support developmental projects, mainly in the regions. For more information, visit www.fierpartenaires.com .
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Information:
Isabelle Mignault
Press Relations Officer
Office of the Minister of Economic Development, Innovation and Export Trade and Minister of Tourism
418 691-5650
Jean-Pierre Bernier
Spokesperson
FIER Partners
514 873-7244
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