Nothing predestined Wils Théagène to juggle hundreds of millions of dollars. This son of a Haitian farmer who grew up in a deprived environment in the east of Montreal nevertheless sat in the senior management of the Caisse de dépôt et placement. One of the only Afro-descendants to navigate the world of finance, he is now preparing to launch an investment fund for “underrepresented” entrepreneurs. The duty the encounter.
Wils Théagène, installed in “la Citadelle”, a building on Saint-Laurent Boulevard where only businesses from the black community of Montreal are headquartered, does not do charity. There is money to be made with entrepreneurs of all origins, says the businessman from the outset. “We don’t ask for favors. » The important thing is “quality output”.
Born in Haiti, arriving young in Montreal, he climbed the ranks of the elitist business world before being hired in 2017 at the Caisse de dépôt et placement du Québec (CDPQ) as head of financing for Quebec companies. mid-cap. It is at this pivotal moment that the contrast between the color of his skin and that of his partners catches him.
Nearly 95% of the portfolios that come before his eyes belong to white entrepreneurs. Barely 1% of all money invested in venture capital or private equity in Canada ends up in the hands of “diversity” managers, which includes women, he says. “What do you mean we don’t see any black entrepreneurs coming to us asking for money? » he protests.
Convinced that many fortunes die in the bud, he insists to his bosses: the CDPQ must open up to new Quebecers. “They will become the next flagships of Quebec. The financing chain must be complete, from start to growth. »
By insisting, Mr. Théagène obtains the green light to launch his project. The CDPQ places 250 million of Quebecers’ nest egg in the adventure of “diversity” oriented investment. The Équité 25 fund opens in 20203.
“25 to 3” equity, because funding will only be granted if 25% of the shareholders, 25% of the board of directors and 25% of the managers claim to be from an “under-represented” culture in the society.
Despite the support of the Caisse’s big financiers, Wils Théagène must constantly overcome prejudices. “When we talk about investing in an underrepresented entrepreneur, about diversity, the first question we get asked is “yes, but we have to sacrifice returns”. » False, he decides, with scientific articles to back it up. Funds owned by culturally diverse entrepreneurs perform “at a comparable level” to their peers.
Black ink, red ink
Wils Théagène left the Fund last December and plans to launch his own fund this year. This “laboratory” that is the Équité 25 fund3 ultimately served as a launching pad. “I have all the data. I know the issues. I have to sort them out. »
Debt problems, weak networks and lack of mentoring, much remains to be done with these colleagues. The business ecosystem “is all messed up” in his community, according to him. Growth will therefore come through capital, but above all through the network and support. “You can’t just put capital in without a network or support. It won’t work with diversity. It takes all three because the entrepreneurs are young. »
His future fund does not yet have a name or institutional investors. However, the shortfall is obvious to him when he consults the demographic results of this ever-increasing population.
If signing a report in black ink means making a profit, he claims to bet everything on this color. “I want a real fund. We need output, performance, he said several times during the interview. We are not asking anyone to lower the standards. »
To show how certain he is to see partners raise their hands in the coming months, he points out the big hole in the constellation of investment funds. “When you look at investment funds, the vast majority will have a theme on artificial intelligence or climate or something else. A vision that combines a positive contribution to society. For me, it’s performance combined with a form of “taking care of communities” that I want. »
Exit the NPOs
Wils Théagene rolls his eyes. How many times has he seen community initiatives become “non-profit” businesses? He grimaces when we mention hair salons, restaurants or small grocery stores that belong to immigrants. “It’s perfect, but it doesn’t stop there. Nobody tells you about the next Google! »
After negotiating for years with Afro-descendant partners, Wils Théagène is convinced that Quebec is “depriving itself of competent people”. Success stories will emerge sooner rather than later, he says, as long as you take out the checkbook. And to be sensitive to the issues of difference. “Why did I manage to leave a fund at the Caisse? It’s because I’ve been my authentic self to my values. It is an asset for Quebec to be authentic to its values. »
Wils Théagène is a rare model in the white world of investment. As such, its simple presence fills a deficit in our society.
This report is supported by the Local Journalism Initiative, funded by the Government of Canada.