Montréal, March 17, 2011 - As part of the Québec budget tabled today, the Fonds de solidarité FTQ (the "Fonds") has undertaken to invest $50 million to create two new investment funds, one to cultural enterprises and another dedicated to business succession in Québec. As such, the Fonds Relève Québec and the Fonds Capital Culture Québec will receive $10 million and $40 million respectively. In addition, the Fonds has also confirmed an additional investment of $6.7 million in the Fonds d’investissement de la culture et des communications s.e.c. ("FICC").
The Fonds invests $40 million in cultural enterprises
Continuing its engagement in the cultural and recreational tourism sector, where it has invested close to $300 million to date, the Fonds has earmarked $40 million for the new Fonds Capital Culture Québec, created in partnership with the Québec government, which is investing $60 million. This new fund will support companies active in book publishing, sound recording, and TV, film, show and multi-platform production.
More specifically, this $100 million fund will back large projects aimed at the international markets and that demonstrate a high ROI potential. "Several local artists have long been internationally acclaimed and we want to leverage Québec’s creative strength and ability to propel new cultural and entertainment talent onto the international scene. This new financial tool will make it easier to achieve this objective. And that’s why this new fund will concentrate mainly on projects with strong spinoffs here at home such as Québec show productions abroad," stated Fonds President and Chief Executive Officer Yvon Bolduc.
$7 million for the FICC from Fonds de solidarité FTQ and the Union des artistes
The Fonds has also undertaken to contribute an additional $6.7 million to the Fonds d’investissement de la culture et des communications bringing its total investment in this fund to $26.7 million. The Union des artistes is injecting $400,000 while the Société de développement des enterprises culturelles (SODEC) is contributing $3.3 million. As such, the FICC will receive a total of $10.4 million.
According to Union des artistes president and FICC’s Chairman of the Board Raymond Legault, "Culture is a $13.6 billion industry that also provides 177,000 direct and indirect jobs. Our culture is showcased around the world and we at home benefit from the success of our creators and performers. Culture needs investments so it can shine even more, and I commend the government and the Fonds de solidarité FTQ for taking concrete action and injecting funds in this industry, which is part of Quebecers’ DNA.".
The Fonds earmarks $10 million for business succession
"More than ever before, Québec is facing a major challenge where business succession and survival are concerned. The Fonds has been working tirelessly for over a decade coaching and financing a new generation of business leaders," said Mr. Bolduc. Through its portfolio manager and succession expert Gabriel Nadon, the Fonds has aligned itself with Opération relève Québec 2011, a vast information and networking campaign being conducted in 13 cities across Québec in the form of conference-workshops. "To continue supporting the growth of our economy in all industries, we have to keep businesses here in Québec. The new Fonds Relève Québec will provide another source of capital that will help SMEs transfer ownership to Québec purchasers. The Fonds praises this concerted effort that brings together the government and Québec’s leading venture and development capital players," concluded Mr. Bolduc.
Aside from the $10 million from the Fonds de solidarité FTQ, the new Fonds Relève Québec will receive $40 million, broken down as follows: $20 million from the Québec government, $10 million from Fondaction CSN, and $10 million from Capital Regional et cooperative Desjardins. As such, the Fonds Relève Québec will receive a total of $50 million. The Fonds Relève Québec will act as a complementary source of funding to traditional financing, offering unsecured loans to purchasers of Québec SMEs.
About the Fonds de solidarité FTQ
The Fonds de solidarité FTQ helps drive our economy. With net assets of $7.7 billion as at November 30, 2010, the Fund is a development capital investment fund that channels the savings of Quebecers into investments in all sectors of the economy to help further Québec's economic growth. The Fund is a partner, either directly or through its network members, in 2,052 companies. With its 577,511 owner-shareholders, it has helped, on its own or with other financial partners, to create, maintain and protect 150,133 jobs. For more information, visit www.fondsftq.com.
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Note: The telephone number provided below is only for the press and other media representative.
Source: Josée Lagacé
Senior Advisor, Press Relations and Communications
Fonds de solidarité FTQ Telephone: 514 850-4835
Cellular: 514 707-5180
Mail: jlagace@fondsftq.com