Indigena Capital to Launch $250 Million Indigenous Equity Partnership Fund to Bridge Private Investment with Indigenous Communities in Canada and the United States
/NOT FOR DISSEMINATION IN THE UNITED STATES OR TO U.S. NEWSWIRE SERVICES./
CALGARY, AB, Dec. 8, 2021 /CNW/ - Indigena Capital, LP ("Indigena") is pleased to announce the launch of its Indigenous Equity Partnership Fund ("the Fund") dedicated to partnering with First Nation, Inuit and Métis communities in Canada and Tribal Nations in the US ("Indigenous Nations" or "Nations") to provide equity capital that will enable Nations to actively participate in commercial scale enterprises. Nations have substantial rights and resources that, when empowered with fit for purpose capital, can deliver a meaningful economic engine for the socio-economic well-being of their communities, while delivering appropriate sector returns to investors. Indigena will raise up to C$250 million of capital from institutional investors across Canada, the United States and Europe for deployment into the agriculture, renewable energy and carbon offset, infrastructure, and real estate sectors.
With more than 35-years of experience in successfully partnering and investing with Indigenous Nations, Indigena designed the Fund to begin to institutionalize private investing with Nations across North America. Indigena and its predecessors have operated using a capital allocation model that either relied on its balance sheet or investor capital for funding transaction types, in essence, matching capital, investors, and Nations by project. This model proved successful with Indigena achieving above sector returns for its investors, while providing needed commercial revenues for partner Nations to augment their existing economies or build new ones. During its history, Indigena and its predecessors have sourced or invested more than $2.5 billion of capital in over 70 transactions while achieving quantifiable social impact. With the expansion of commercial opportunities available to Nations today growing to a scale that demands billions of dollars of capital, Indigena believes now is the time to institutionalize a bridge between the financial markets and Indigenous communities.
"The days of Nations struggling to access investment capital through an experienced provider, despite having latent opportunity similar to that of any emerging market, need to end. With the creation of the Indigenous Equity Partnership Fund, we are taking the first step to bring about that needed change," said John Jurrius, CEO, Indigena Capital. "This day is long overdue. In Canada alone, there are more than a trillion dollars in venture and private equity assets under management ("AUM") in the private sector, and less than 1% of that allocation is dedicated to, or specializes in, serving the Indigenous sector. When you think about the millions of acres of Reserve Lands, Traditional Territories and Ancestral Lands in Canada that are tied directly to First Nations, Inuit and Métis, it is hard to conceive of many commercial transactions that don't intersect Indigenous lands, territories or rights. Without fit for purpose capital, Indigenous rights and resources and the associated economic opportunity, will continue to be eroded and we will have lost a tremendous opportunity to foster needed commercial economies for Indigenous Communities and bring about associated economic reconciliation."
Indigena's Fund is specifically designed to provide the equity capital to advance investable commercial projects across their specified sectors in partnership with Indigenous Nations. Indigena will use its proven partnership model to provide project identification, underwriting, structuring, incubation, back office, commercialization, and monetization of Indigenous projects as it deploys the Fund capital.
"The Kainai/Blood Tribe is excited to see Indigena announce the launch of the Indigenous Equity Partnership Fund," said Makiinima, Chief Roy Fox of the Kainai/Blood Tribe. "In my long history of serving the Kainai/Blood Tribe membership, it has been a journey to find the necessary capital to advantage our rights and resources. My Nation, like many others, has commercial opportunities across sectors, and the only way we can build our economic engine is by being able to access capital in a timely manner from a partner that specializes in our space and that we trust. Indigena has been the only pure-play equity partner that has partnered with us to provide equity capital on a number of commercial opportunities beginning in 2012, bringing over $200 million to enable our active participation in our resources, renewable resource opportunities and in building our agribusiness portfolio."
Pearl Casias, former Chairwoman, Southern Ute Tribe, U.S.A. adds: "The strong, courageous, and visionary leadership of our Tribe, combined with Mr. Jurrius' support of our financial plan and a means to access capital, made it possible for us to make necessary changes that created economic security for our people in perpetuity. By launching the Indigenous Equity Partnership Fund, Indigena Capital will be able to assist many Nations in attaining meaningful economic change."
"While the need for economic self determination has always been present for Indigenous communities and businesses, the distinct lack of competition of capital has often resulted in limited choices. Fortunately, awareness is increasing within the capital markets and there are increasing opportunities to increase both the access and breadth of capital solutions, ranging from debt to equity. This development is at the forefront of many capital markets conversations, as it relates to delivering capital that works on economic, environmental, social, and governance dimensions," said Jon Horsman, CEO, ATB Capital Markets. "While there is now more debt capital available from provincial and federal governments, the relative lack of equity capital has made it nearly impossible for Indigenous communities and businesses to grow, scale, and pursue a vision for themselves. ATB Capital Markets has identified Indigena's unique scalable platform and successful track record for both Indigenous and investor communities, as a bridge over that gap."
With trillions of dollars of capital focused on both returns and the Environmental Social Governance ("ESG") metric, the Indigena model offers direct quantifiable and intentional social impact within an ESG framework while achieving sector returns for investors. Indigena's fund will facilitate deployment of capital in alignment with Indigenous communities in North America, one of the most underserved emerging markets.
ATB Capital Markets USA Inc., a wholly owned subsidiary of ATB Financial, has been engaged to act as the placement agent and advisor to the Fund.
About Indigena:
Indigena partners with Indigenous Nations to assess their unique rights and resources, investing early-stage capital to assist them in taking an active role in development. Indigena has specialized in partnering exclusively with Indigenous Nations in Canada and the United States of America for over three decades. Through disciplined capital allocation, the return expectations of investors can be met while creating the foundation for self-sustaining economies for Nations. For more information please visit: www.indigenacapital.com.
About ATB Capital Markets:
ATB Capital Markets provides investment banking and financial services, combining local market and industry specialization with global knowledge and an international reach. ATB Capital Markets helps clients succeed through services including corporate banking, loan syndications, project finance, debt and equity capital, derivative products, institutional sales and trading, merger, acquisition and divestiture advisory and private equity. With expanded financial and advisory services offerings and a highly specialized team, we bring entrepreneurism, unique opportunities, and creative solutions—all with integrity and an unwavering commitment—to serve our clients' best interests.
Forward Looking Statements:
This news release contains forward-looking statements and forward-looking information (collectively "forward looking information") within the meaning of applicable securities laws. Forward-looking statements can be identified by words such as: "plan," "believe," "expect," "target," "may," "should," "will," "can" and similar references to future periods. Examples of forward-looking information include, among others, statements with respect to the expected effect of the Fund on Indigenous Nations, the ability of the Fund to generate a return to investors, the ability of the Fund to deploy capital, the sectors in which the Fund will deploy capital, the increasing awareness of Indigenous opportunities in the capital markets and increasing access and breadth of equity and debt capital for Nations, and that without fit for purpose capital Indigenous rights, resources and economic opportunity will be eroded. The forward-looking information constitutes neither historical facts nor assurances of future performance and is based on certain key beliefs, expectations and assumptions made by Indigena, including expectations and assumptions regarding the future of its business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions, including the state of the agriculture, renewable energy and carbon offset, infrastructure, and real estate sectors; business prospects and opportunities, including Indigena's ability to partner with Indigenous Nations; the expected benefits of partnerships with Indigenous Nations; and the current regulatory and political environment. Because forward-looking information relates to the future, such information is subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of Indigena's control. Actual results and financial condition may differ materially from those indicated in the forward-looking information, and as such no reliance should be made on any forward-looking information, which reflect Indigena's expectations only as of the date of this media release. Except as required by applicable securities laws, Indigena undertakes no obligation to update any forward-looking information, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
This news release is not an offer of securities for sale in the United States. The securities of Indigena have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or the securities laws of any state of the United States and may not be offered, sold or delivered, directly or indirectly, in the United States (as such term is defined in Regulation S under the U.S. Securities Act) or to, or for the account or benefit of, U.S. Persons (as defined in the U.S. Securities Act), except pursuant to an exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws. This news release does not constitute an offer to sell or solicitation of an offer to buy any of these securities in any jurisdiction in which the offering or sale is not permitted.
SOURCE Indigena Capital
Justin Ferguson, Vice President, Indigena Capital, 403.992.0498, [email protected]
Share this article