Caisse de Depot et Placement du Quebec, Montreal, and Canadian financial services firm Desjardins Group on Tuesday announced the launch of a venture capital fund targeting new financial technology firms in Quebec and elsewhere in Canada.
Caisse and Desjardins will each invest C$25 million ($20 million) in the fund, which will operate independently of the two firms, according to a news release. The new fund has not yet been named.
The first closing of the fund, with a maximum size of C$75 million, is expected by the end of the year, the two firms said in the release, with other institutional investors expressing interest in joining. Neither Caisse nor Desjardins identified the other potential investors.
Along with financing for the new fund, Caisse and Desjardins will provide "privileged and highly confidential" data to fintech firms in which the fund invests, according to the release. The firms did not elaborate in the news release; spokesmen at Caisse and Desjardins could not immediately be reached for details.
The new fund, to be based in Montreal, will take advantage of the city's position as a Canadian fintech hub, Pierre Miron, chief operations and information technology officer at Caisse, said in the release.
Caisse manages C$286.5 billion in Quebec pension and other assets; Desjardins manages C$272 billion in assets for institutional and retail clients.
