National Bank announced on July 13 the creation of the National Bank SME Growth Fund, L.P., in equal partnership with the Quebec government.

The fund aims to help support Quebec's economic recovery following the COVID-19 pandemic and the digital transformation of SMEs. “Its objective is to raise up to $200 million in capital to be injected by the Quebec government on one hand and by National Bank and private investors related to the Bank on the other hand,” stated the bank in an announcement.

The fund will complement bank financing already offered to SME owners to help them with their transfer, growth and acquisition plans, whether in Quebec, elsewhere in Canada or abroad. It will also boost private investments by having several types of investors participate in the stimulus project.

The fund, which will be marketed in the coming months, is aimed at businesses with assets of less than $200 million or a net worth of less than $100 million operating in any industry and at any stage in their business cycle, says the bank. National Bank Investments Inc. will assume responsibility as fund manager.

"As part of the ongoing economic recovery, entrepreneurs will need access to various forms of capital to stimulate their growth. That's why we're creating the National Bank SME Growth Fund, L.P., in partnership with the Quebec government. This equity capital fund will complement the bank financing offered to SMEs, supporting their projects and helping to ensure their continuity," said Louis Vachon, President and Chief Executive Officer of National Bank.