Investment Capital Plays a Leading Role in Enhancing the Performance of Supported Companies

MONTREAL, Sept. 17, 2024 /CNW/ - Réseau Capital and its Investment Capital Expertise Centre are unveiling today a groundbreaking study on the economic impact of the Quebec venture capital and private equity industry. The mission of the Expertise Centre is to strengthen the financing chain in Quebec to better leverage innovation, support business scaling, and contribute to economic development and wealth creation in Quebec.

With this goal in mind, Réseau Capital commissioned EY to measure the economic impact of the venture capital and private equity industry on the Quebec economy, and to assess the impact of this financing on the performance of the supported companies.

From 2013 to 2023, over 3,000 Quebec companies were supported by venture capital or private equity through more than 5,400 transactions, with investments totalling nearly $90 billion. In 2022, considering all economic activities, it is estimated that the operating and capital expenditures of companies supported by investment capital contributed more than $45 billion to Quebec's GDP, more than $27 billion in wages and salaries, and over 520,000 jobs supported.

The study unveiled today is unique in that it provides an assessment of the impact of investment capital financing on the performance of supported companies. It is therefore possible to measure the effect of this financing on several variables and to compare this effect with similar companies that did not receive financing or to compare it to the period preceding support from an investment capital firm.

In this regard, it is noteworthy that there is a statistically significant impact of investment on key variables such as revenue, profit, and research and development spending. An increase in company productivity in the years following the financing is also observed.

Finally, the study highlights the positive role of our industry on various socioeconomic factors, including increased investments in the clean technology sector, efforts to support diversity, equity, and inclusion, and support for developing a dynamic innovation ecosystem.

"This unprecedented study quantifies the significant impact of our industry on the Quebec economy and also on the performance of the supported companies. With concrete data, it is now possible to better measure the essential role of investment capital in addressing current challenges such as environmental transition, technological innovation, and the modernization of the economic and industrial fabric," said Olivier Quenneville, President and CEO of Réseau Capital.

Acknowledgments

Réseau Capital wishes to thank the Ministry of Economy, Innovation, and Energy (MEIE) for its essential support in establishing and working with the Investment Capital Expertise Centre. We also thank our partner – Espace CDPQ.

For more information, please consult the study: 
https://bit.ly/3Tvb49S

About Réseau Capital
Réseau Capital is the investment capital association that brings together all stakeholders in the investment chain operating in Quebec. Its mission is to contribute to the development and dynamism of the investment capital industry, which plays a vital role in the development and financing of businesses in Quebec. Founded in 1989, Réseau Capital represents more than 100 corporate members, including not only private equity firms, tax-advantaged and public funds, but also banks, accounting and law firms, as well as numerous professionals working in the industry.

SOURCE Réseau Capital

Luc Tousignant, Vice President of Business Development and Outreach, Phone: [phone], Email: [email protected]