The Quebec government’s investment arm is investing $35 million in a fund just launched by a former Power Corporation executive, learned The newspaper.
“It’s 100% independent,” assured Pierre Larochelle when The newspaper asked him if his new $250 million fund, Idealist Capital, was related to Power Corporation.
Photo from Power Corporation website
Idealist Capital was founded earlier this year by Pierre Larochelle (photo), who was part of the senior management of two subsidiaries of Power Corporation, and Steeve Robitaille, former vice-president of Bombardier and WSP.
“I have not met [le ministre de l’Économie] Pierre Fitzgibbon for this. I saw him socially once,” explained Pierre Larochelle.
As a senior executive of Power Energy and Power Sustainable, two subsidiaries of Power Corporation, Mr. Larochelle says he has worked on projects related to climate change, renewable energy and transportation electrification.
Today, Mr. Larochelle, who chairs the boards of Lion Electric and LMPG (Lumenpulse), leads this new fund with Steeve Robitaille, a former partner at the law firm Stikeman Elliott and former vice-president of Bombardier and WSP.
No question of using the money to finance Lion or LMPG, assured Mr. Larochelle. Rather, the goal is to encourage other firms to grow.
Rain of millions
At Logthe latter did not want to say how much Investissement Québec (IQ) put into Idealist, but IQ confirmed after having injected $35 million from its own funds.
This is not the first time that IQ has invested in a fund close to the Desmarais family, controlling shareholders of Power Corporation.
In recent years, IQ and the Caisse de depot et placement du Quebec have invested more than $128 million in funds managed by Power. Last fall, IQ notably bet $35 million on a fund from the firm Sagard, a subsidiary of the Montreal conglomerate.
Yesterday, The newspaper asked Power Corporation if he was an investor in the new fund, but our request went unheeded.
Members of the same councils
Note that the big boss of IQ, Guy LeBlanc, has already sat on the board of Lion Electric. For his part, Mr. Fitzgibbon has already been a member of that of Lumenpulse. Finally, the minister’s former agent, Michel Ringuet, currently sits on the boards of both companies.
IQ owns 0.8% of the shares of Lion Electric. In addition, the Ministry of Economy granted a “forgivable loan” of $50 million to the company in 2021.
Also last year, The newspaper wrote that Investissement Québec was prepared to write a $90 million check to Power Corporation to buy out part of its stake in LMPG. The transaction was however abandoned with the company’s decision to cancel its plan to return to the stock market.
Power is the majority shareholder of LMPG.
Idealist Capital
- Foundation : 2022
- First closing: $250 million
- Founding partners: Pierre Larochelle and Steeve Robitaille
- Investors: Desjardins Group, Investissement Québec, Fondaction, TD Bank Group and National Bank of Canada
- Advisory committee: Marc Bédard (Lion Electric), Kim Tokarsky (Taiga Motors), Karim Zaghib (former Hydro-Québec and Investissement Québec)
- Expected return over 10 years: 20% per year
Source: Idealist Capital and Pierre Larochelle