Capital for Aboriginal Prosperity and Entrepreneurship (CAPE) Fund

Impact Areas:

Capital for Aboriginal prosperity and entrepreneurship

Abbreviation:

CAPE

Website:

Funding Amount:

> $1 Million

Geographic Area:

National

Summary:

CAPE Fund is a $50 million private-sector investment fund initiated by 21 leading companies, individuals and US based Foundations. CAPE Fund is focused on mid-market opportunities with a strong degree of Aboriginal involvement and connection to Aboriginal communities throughout Canada. Its mission will require that it act with the same rigour, discipline and best practices with regards to the application of its investment guidelines, processes, and corporate governance standards applied in the private sector.

 

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Program Objective:

Aboriginal businesses in virtually all sectors

Investment Type:

Equity investments, quasi-equity

Key Features:

The Fund will partner in businesses by providing equity and quasi equity investment in varying amounts in the range of $1,000,000 to $7,500,000 (with most investments expected to be in the $3,000,000 to $5,000,000 range). These investments may be "one time" or "staged" depending on the growth and business requirements of the Fund's investee companies. CAPE Fund will invest as a partner in its investee businesses through a selection of equity and quasi equity instruments. These may take the form of: • Common shares • Retractable preferred shares, dividend and non dividend bearing, with current or cumulative dividend • Debentures, interest bearing (either current or cumulative) which may be convertible into equity (at the option of CAPE) or which may have warrants to purchase equity attached to them. It is anticipated that the average hold period of the Fund's investments will be 5 to 7 years. Investments will be structured to provide the Fund with an exit opportunity from the investment within this time period or slightly beyond. It is fundamental to the Mission, that CAPE Fund provides an opportunity for the Aboriginal communities involved to repurchase its interest in each investee company.

Client Group:

Capital for Aboriginal Prosperity and Entrepreneurship Fund