The Canadian Co-operative Investment Fund makes first investments
OTTAWA, June 15, 2018 /CNW/ - The Canadian Co-operative Investment Fund (CCIF) has approved the first investments from its $25 million fund. CCIF is currently closing nearly $1 million in four loans to co-operatives. In Nelson, BC, the capital will be used to support a business expansion. In Edmonton, AB, and in London, ON, the loans will provide mortgage financing for housing co-operatives. Finally, a loan to the Conseil de la coopération de l'Ontario (CCO) will add support to a micro-lending program for co-operative enterprises.
The four investments represent the diversity of the co-operative sector and are clear examples of how CCIF can assist co-operatives in serving their communities alongside co-operative financial institutions.
"The Canadian Co-operative Investment Fund investments demonstrate the importance of having CCIF as part of the co-operative financial ecosystem," said Andy Morrison, recently re-elected President of the Board of Directors of CCIF and former Chief Executive Officer of Arctic Co-operatives Limited and the Arctic Co‑operative Development Fund. "There is a critical need for access to capital for co-operative enterprises and CCIF complements the existing credit union and other financing sources."
CCIF was launched on January 1, 2018. It currently has 16 investors who came together to provide an invaluable source of capital in support of co-operatives across Canada.
| Affinity Services Group Inc. |
Concentra Bank |
| Arctic Co-operatives Ltd. |
Connect First Credit Union Ltd. |
| Assiniboine Credit Union Limited |
Desjardins Financial Holding Inc. |
| Atlantic Central |
Freedonia |
| Caisses Populaires Alliance |
Kindred Credit Union Limited |
| Canadian Worker Co-operative Federation |
Servus Credit Union |
| Co-operative Housing Federation of Canada |
The Co-operators Group Limited |
| Co-operatives and Mutuals Canada |
Vancouver City Savings Credit Union |
"Co-operatives have a long tradition of working together, and CCIF is a great example of the sector collaborating to develop a solution to a long-standing challenge," said Rob Wesseling, President and CEO of The Co-operators, a lead investor in the fund. "We are pleased to see that the capital invested in the fund is now being used to create more co-operative housing, support the expansion of co-operative enterprises and strengthen the work of a co-operative association. We look forward to seeing more investments being made by CCIF from coast to coast to coast."
CCIF makes fund investments in co-operatives in the form of loans, quasi-equity and equity. "We have a great deal of flexibility and can generate creative solutions to meet the capital needs of co-operatives. We have a deep understanding of the particular needs of co-operatives, and have the co-operative values deeply engrained in our approach to investment. We understand the co-operative business model and how to assess and manage risk in making these investments." said Derek Ballantyne, the fund manager engaged to oversee the placement of the CCIF funds.
"Our move into our new store in December 2016 added a new food services department and seating area, which rapidly became the community hub we hoped for. However, it also has rapidly become standing room only during peak hours," said Allan Broom, General Manager of the Kootenay Country Store Co-operative in Nelson, BC. "Thanks to the loan from CCIF, we are now able to proceed with an expansion of our seating area through the addition of an exterior patio area. On behalf of our member owners and community - thank you CCIF!"
The announcement of the first approved CCIF investments comes a short time after the election of a new Board of Directors. In addition to Andy Morrison returning as President, the Board includes Peter Hough of the Canadian Worker Co-operative Federation, Madeleine Brillant of Co‑operatives and Mutuals Canada, Rob Wesseling of The Co-operators, Marty Frost of CoopZone, Denis Beaudry of Desjardins Group and Tanya Llewellyn of Affinity Credit Union.
About the Canadian Co-operative Investment Fund: The CCIF is a response to a critical challenge for co‑operatives to access capital without compromising their autonomy and their one member, one vote structure. Launching with an initial $25 million, the fund is open to investment by accredited investors across Canada.
CCIF is managed by Community Forward Fund Assistance Corporation (CFFAC), a non-profit registered fund manager. CFFAC is affiliated with New Market Funds.
SOURCE Co-operatives and Mutuals Canada
on investing in the CCIF or for details on how co-operatives can qualify for financing from the fund, visit the CCIF website or contact the fund manager, Community Forward Fund Assistance Corp: Derek Ballantyne, Fund Manager, [email protected]
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