Desjardins Capital, the business investment division of Desjardins Group, recorded in 2021 the strongest year in its history by carrying out no less than 250 financing operations for a total amount of 705 million. Marie-Hélène Nolet, who joined the organization in January 2021 as the new Chief Operating Officer, tells us about the feats of this last record year.
Posted at 8:00 a.m.
After completing a big year in 2019 by securing $400 million in financing, Desjardins Capital was hit by the wait-and-see context brought about by the pandemic in 2020, closing only $211 million in new commitments, while many companies have put investment projects on hold.
The year 2021 has however been a year of catching up, observes Marie-Hélène Nolet, chief operating officer of Desjardins Capital.
“Companies had projects to finance, and we reopened the machine in 2021. We had planned to carry out 500 million in new financing, but we ended the year with a very strong last quarter, which enabled us to carry out for 705 million engagements, a record year for us,” explains Ms.me Nolet.
Desjardins Capital is part of the financing offer available to Quebec companies with other well-known development capital institutions such as the Solidarity Fund, Fondaction, Investissement Québec or BDC.
We mainly do subordinated debt and equity investments, whether minority or majority. We work a lot in complementarity with the Centers Desjardins Entreprises, with which we are present in all regions of Quebec.
Marie-Helene Nolet
“We also do a lot of co-financing with the other development funds that are our partners. As a general rule, 75% of our investments are made through subordinated debt and 25% through equity participation. But our equity investment financing represents 60% of the amounts we invest”, specifies the manager.
2021 was no exception. If Desjardins Capital multiplied the number of debt financing transactions of less than $500,000, it completed 6 large transactions of more than 25 million in as many companies.
“Our biggest equity investment last year was our investment of 60 million in QScale, the huge data center project in Lévis which will require total investments of 870 million,” underlines Marie-Hélène Nolet.
The manager, who began her career in venture capital at GTI Capital and CapiTech, the investment division of Hydro-Québec, worked for 14 years at BDC, in venture capital and advisory services, before joining Desjardins Capital just over a year ago.
The Desjardins Capital specificity
What sets Desjardins Capital apart from other players active in venture and development capital?
“We are patient, human, attentive to entrepreneurs and we are agile. We are also the manager of the tax-advantaged fund Capital régional coopératif Desjardins (CRCD). Last year, CRCD raised 140 million and we invested 700 million. We raise money and invest our own funds efficiently,” says the chief operating officer.
Desjardins Capital today has financial commitments in more than 650 Quebec companies totaling more than $2 billion. The company obviously benefits a lot from Desjardins Enterprise’s referrals and completes the financing needs of entrepreneurs.
We are very present in the manufacturing sector, agri-food, transportation, and we have invested a lot in 2021 in regions such as Chaudière-Appalaches or Estrie, as well as in the resource regions.
Marie-Helene Nolet
“We are also very active in the technology sector, via our venture capital activities which represented, in 2021, 15% of the 251 financial commitments that we made”, notes Marie-Hélène Nolet.
Among the investments in start-up capital, Desjardins Capital granted a second financing of 2 million to the young Montreal startup Heyday, which develops conversational robots. The company was subsequently acquired by Hootsuite of Vancouver.
“We invest in Quebec companies so that they continue their development in Quebec, but sometimes transactions are carried out and the choice of entrepreneurs must be respected. In the case of Heyday, it remains in Canada, and the company will continue its development from Montreal,” notes Marie-Hélène Nolet.
Note here that Desjardins Capital was one of the major shareholders of Camso, which was sold to the multinational Michelin. “This summer I met the leaders of Michelin in Paris and they are very happy with their investment. Camso is continuing its development in Magog and its sale has given us funds that we are reinvesting in Quebec,” she adds.
Another good year ahead
Marie-Hélène Nolet does not think that Desjardins Capital will be able to carry out as many interventions this year as in 2021, but she nevertheless considers it realistic to reach the objective of 525 million new investments.
“We support great companies, such as the Avril supermarkets in which we have taken a minority stake which will allow the group to add five new stores to its health chain”, recalls Marie-Hélène Nolet.
Desjardins Capital is also banking on the $120 million DC Transatlantique Fund that it set up in collaboration with CRCD, Export and Development Canada and BPI France (the equivalent of the French BDC) to stimulate investment by Quebec companies. in Europe and vice versa.
“We are aligned to support our businesses in the jolts of economic recovery by offering them the best possible support.
“When you invest in equity, you get a position on the board of the company which will be occupied by an independent director, an entrepreneur who has expertise and who will use it to ensure the best development of the group”, insists Marie- Helen Nolet.