Social economy

BACKGROUND

The social economy differs from the strictly market economy by the importance it places on individual and community needs. Made up of cooperatives and non-profit organizations (NPO), these must nevertheless sell goods or services, even if they are non-profits, in order to be considered a part of this sector.

Québec has some 5,000 companies in the social economy: 53% are cooperatives and 47% are NPOs. Accounting for 124,000 jobs, this sector generates revenues of $17.2 billion or 6% of Québec’s GDP.

INDUSTRY CHALLENGES

To ensure its long-term growth, the social economy sector will have to address the following challenges:

Raise its visibility in the Québec economy;
Convince investors that like the private sector, social economy businesses present viable investment opportunities.

WHERE THE FONDS FITS IN

The Fonds de solidarité FTQ leverages its expertise, capital and vast network to:

Provide financial and strategic support to companies seeking to maximize their growth;
Allow companies to capitalize on market opportunities to develop value-creating projects;
Help create and keep jobs in Québec.

OUR PORTFOLIO

Although the Fonds de solidarité FTQ has not yet made any direct investments in social economy businesses, it has invested $25.5 million in social economy investment funds.

INVESTMENT PRIORITIES OF THE SPECIALTY FUNDS

FIDUCIE DU CHANTIER DE L'ÉCONOMIE SOCIALE

The Fiducie invests exclusively in social economy businesses, essentially in non-profit organizations and cooperatives, most of whose employees live in Québec. Eligible companies must have less than $100 million in assets or less than $50 million in capital.

FONDS D'ACQUISITION

Fonds d’acquisition de Montréal and Fonds d’acquisition québécois

These two funds provide short-term bridge financing for land or property destined for community housing.
The Fonds d’acquisition de Montréal is dedicated to the Island of Montréal while the Fonds d’acquisition québécois covers the entire province.

FONDS D'INVESTISSEMENT

Fonds d’investissement de Montréal and Fonds d’investissement de Montréal II

These funds purchase housing properties, which are then renovated and resold to community organizations.

FONDS LOCAUX DE SOLIDARITÉ FTQ

The Fonds locaux can invest up to $100,000 in a social economy company.

FINANCING

The Fonds offers solutions tailored to your needs.

FINANCING SOLUTIONS

The Fonds tailors its offer to match the individual needs of its partner companies. We offer patient capital that takes into account the challenges businesses face and the time they need to see their projects to fruition.

Our flexible financing options include:

Equity financing (common or preferred shares)
Unsecured debt, requiring no collateral (debenture)

FINANCING CRITERIA

The Fonds gives priority to businesses that satisfy, among others, the following criteria:

Competent, dynamic and credible teams with operating experience;
Shareholders and officers receptive to investors, alliances and partnerships;
Sound business plans and concepts;
Promising market and profitability outlook;
Competitive advantages;
Preservation and creation of lasting jobs.

A SPECIALIZED TEAM

There are many advantages to partnering with our team, including:

Solid expertise in the sector;
Financing tailored to your needs;
A multidisciplinary, seasoned and available team;
Strategic support in the short, medium and long terms;
Proactive and close by.

INVOLVEMENT IN THE INDUSTRY

The Fonds is actively involved in the social economy industry.

INDUSTRY ASSOCIATIONS

The Fonds de solidarité FTQ sponsors the following associations and organizations:

Groupe d’investissement responsable
Chantier de l’économie sociale
Réseau de la finance solidaire responsable
Équiterre

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