By David G. Barry
Fonds de solidarité FTQ and The Canada Life Assurance Company are among the institutional investors biting into Power Sustainable’s inaugural agri-food private equity fund.
A Montreal alternative asset manager, Power Sustainable said it had closed an initial CA$210 million (US$162 million) of aggregate capital commitments for Lios Fund I. The list of initial investors in the fund also includes Farm Credit Canada (FCC), Export Development Canada (EDC), BMO Capital Partners and CIBC.
Power Sustainable is targeting total commitments of CA$300 million (US$231.8 million) and is expecting to close the fund in the third quarter.
Power Sustainable is focused on investing the Lios fund in mid-market companies operating across the food value chain in North America. Through majority or meaningful minority ownership participation, the firm aims to support companies positioned to prioritize and improve food system sustainability.
In a statement, Dany Pelletier, senior vice president, private equity and impact investments of the Fonds de solidarité FTQ, said the Quebec-based development capital company’s support of the fund is in “direct alignment” with its mission to enable “economic growth and development in the agri-food sector.” The fund, he said, “will help agri-food companies innovating in the face of current challenges.”
Power Sustainable also has established energy infrastructure equity and sustainable China public equity platforms.