To support the development of cleantech companies, four Québec-based institutions are investing US$29 million in the new US$156.5 million Spring Lane Capital Fund I. With their investments, BDC Capital (US$15 million), Fonds de solidarité FTQ (US$7.5 million), Fondaction (US$3.5 million) and Palomino Capital (US$3 million) are looking to finance the start-up and post-start-up phases of cleantech companies, essential actors in the field of sustainable development.
“BDC Capital is pleased to support the launch of Spring Lane’s inaugural fund,” said Alison Nankivell, Vice President, Fund Investments and Global Scaling. “We believe the Spring Lane’s combination of project finance and growth equity for small scale environmental projects will help address a genuine funding gap in the financing chain for cleantech companies.”
“With its innovative and pioneering model, Spring Lane Capital is addressing the main challenge faced by the cleantech sector when it comes to start-up and post-start-up financing. The Fonds de solidarité FTQ’s investment will further help the development of clean technologies right here in Québec,” adds Dany Pelletier, the Fonds’ Vice-President for Investments, Strategic Capital, Energy, Environment and Mines.
“The model that Spring Lane Capital proposes will enable local companies that are developing innovative technologies to access capital and develop their markets in areas in line with our objectives of sustainable development and the fight against climate change. Furthermore, its expertise in project financing makes it an interesting model for expediting the positive shift in our economy,” continues Marc-André Binette, Deputy Chief Investment Officer at Fondaction.
“We are very happy to support cleantech companies, both locally in Québec and abroad, as they benefit from Spring Lane’s innovative financing model to help grow their business,” declares Gary Alexander, CEO of Palomino Capital.
About BDC Capital
BDC Capital is the investment arm of BDC- Canada’s only bank devoted exclusively to entrepreneurs. With over $3 billion under management, BDC Capital serves as a strategic partner to the country’s most innovative firms. It offers a full spectrum of risk capital, from seed investments to transition capital, supporting Canadian entrepreneurs who wish to scale their businesses into global champions. Visit bdc.ca/capital.
About the Fonds de solidarité FTQ
The Fonds de solidarité FTQ is a development capital investment fund that channels the savings of Quebecers into investments. As at May 31, 2019, the organization had $15.6 billion in net assets, and through its current portfolio of investments supports 215,104 jobs. The Fonds is a partner in 3,126 companies and today has more than 700,000 shareholder-savers.
Fondaction distinguishes itself through its investments, which are aimed at supporting, promoting and encouraging sustainable development. It manages assets in excess of $2 billion collected as retirement savings from more than 170,000 shareholders.
Fondaction supports the development of more than 1,200 SMEs, many of which are social economy enterprises. It helps create and maintain jobs and reduce inequalities, and contributes to the fight against climate change. Fondaction reduced the carbon footprint of its equity market investments by 51% between 2015 and 2018. For more information, go to fondaction.com or visit our LinkedIn page.
About Palomino Capital
Palomino Capital Corp. is a Montreal-based family office. We deploy proprietary capital across a broad spectrum of asset classes including alternative asset managers, bespoke private credit facilities, direct private equity and real estate.