Quebec Creates Technology Seed Funds

In its 2009-2010 budget, the Québec government announced the creation – in collaboration with Fonds de solidarité des travailleurs du Québec (F.T.Q.) and FIER Partenaires, Société en Commandite – of three specialized seed funds for the technology sector to be awarded by call for tenders. The three seed funds, having an aggregate capitalization of $124.3 million at their initial closing, were formed at the end of 2010 and at the beginning of 2011.

On October 25, 2010, the formation of Réal Investment Fund, L.P., an IT-specialized seed fund with an initial capitalization of $41.55 million, was completed. Funding of Réal Investment Fund, L.P. was provided by various partners, including the Québec government through Investissement Québec ($16.5 million); Fonds de solidarité des travailleurs du Québec (F.T.Q.) ($10.9 million); FIER Partenaires, Société en Commandite ($5.6 million) and private investors ($8.25 million in the aggregate) including an investment of $1 million by Réal Investment GP, L.P., the general partner of Réal Investment Fund, L.P.

On December 10, 2010, the initial closing of Seed Fund Cycle-C3E, Limited Partnership, a clean technology seed fund with an initial capitalization of $41.5 million, was completed. Funding of Seed Fund Cycle-C3E, Limited Partnership was provided by various partners, including the Québec government through Investissement Québec ($16.5 million); the Fonds de solidarité des travailleurs du Québec (F.T.Q.) ($10.9 million); FIER Partenaires, Société en Commandite ($5.6 million); Cycle Capital II, L.P., the general partner of Seed Fund Cycle-C3E, Limited Partnership ($500,000) and industrial partners Rio Tinto Alcan Inc., Lonza Finance Limited, Cascades Inc., Société en commandite Gaz Métro, Fonds de développement économique Laprade St-Maurice Inc., Centre d'excellence en efficacité énergétique and Systemex Énergies Inc. ($8 million).

On January 28, 2011, the formation of AmorChem, Limited Partnership, a life sciences specialized seed fund with an initial capitalization of $41.25 million, was completed. Funding of AmorChem, Limited Partnership was provided by various partners, including the Québec government through Investissement Québec ($16.5 million); Fonds de solidarité des travailleurs du Québec (F.T.Q.) ($10.9 million); FIER Partenaires, Société en Commandite ($5.6 million) and private partners ($8.25 million in the aggregate) including a subsidiary of Merck & Co., Inc. ($6.8 million).

Investissement Québec, the Fonds de solidarité des travailleurs du Québec (F.T.Q.) and FIER Partenaires, Société en Commandite were represented by senior in-house counsels Yvan Nantel of Fonds de solidarité FTQ and Guylaine Gaudet of Investissement Québec and FIER Partenaires and by McCarthy Tétrault LLP with a team comprising François Amyot, Mathieu Laflamme and Charles-Antoine Soulière.

Réal Investment Fund, L.P. was represented by Osler, Hoskin & Harcourt LLP with a team comprising Shahir Guindi and Chima Ubani.

Seed Fund Cycle-C3E, Limited Partnership was represented by Davies Ward Phillips & Vineberg LLP with a team comprising Sébastien Thériault and Elise Beauregard.

AmorChem, Limited Partnership was represented by Stikeman Elliott LLP with a team comprising Jean Marc Huot, David Massé and Andrée-Anne Arbour-Boucher.

Merck & Co., Inc. was represented by its senior in-house counsel Edward Yoshida and by Blake, Cassels & Graydon LLP with a team comprising Sunny Handa and Hélène Deschamps Marquis.