Invest Canada Webinar Series Recap: The Power of Minority Investment

Excerpts from the webinar on December 13, 2021.

A minority partner is often the key to fast and sustained growth. Both private companies and private capital funds can reap certain benefits from minority investment. What reasons would justify minority investment, given the obvious limitation of lack of control? Does the lack of control require investors to adjust their standard approach?

CVCA’s CEO Kim Furlong sat down with Claude Miron, Managing Partner, Growth Equity Partners at BDC Capital to explore various angles of minority partnerships.

From the webinar:

• Data suggests an incoming wave of entrepreneurs looking to exit their businesses. Institutions that invest as LPs are cutting larger cheques and there’s a need for transition capital in the market.
• BDC Capital’s Growth Equity Fund is sector agnostic, operates like a traditional PE investor, and serves the entire country.
• BDC Capital Growth Equity Fund has the ability to give back security to entrepreneurs, and management teams to continue to build and grow the company.
• Interests (from all partners) need to be aligned from the start and can be accomplished by establishing governance right away.

Given the need in the market for transition capital, will there be more funds offering the minority solution to entrepreneurs? What elements are at play in the current market that will impact minority investment? 

Watch the webinar recording on-demand to find out more about the power of minority investment: