Aéro Montréal announces support for private equity fund intended to assist the aerospace supply chain
by CM Staff
The funds, which is targeting a size of $100 million, has already garnered firm commitments of $77 million for its initial closing.
MONTRÉAL — Pierre Fitzgibbon, Quebec’s Minister of Economy and Innovation and Minister responsible for Regional Economic Development, announced the launch of Canada’s first private equity fund dedicated exclusively to the aerospace supply chain during Rendez-vous Aéro Montréal, held on June 7 at CENTECH. The funds, which is targeting a size of $100 million, has already garnered firm commitments of $77 million for its initial closing.
A FIRM ENDORSEMENT FOR THE ALLIANCE FOR THE AEROSPACE RECOVERY
In response to the worst crisis ever to hit the aerospace industry, Aéro Montréal initiated a collective approach in 2020 by creating the Alliance for the Aerospace Recovery (AAR). This committee brought together the top leaders of each segment of the supply chain, the various levels of government and the financial community. More than 60 people were mobilized to recommend concrete measures that would meet the needs of the ecosystem, stimulate the economy and create value for all Quebecers and Canadians.
Among the measures submitted to the Ministry of Economy and Innovation in November 2020, the Alliance for the Aerospace Recovery stressed the importance of supporting the expansion of companies through the establishment of a growth and development fund.
In response to this need raised, Thrust Capital Partners is announcing on June 7 the first Canadian private equity fund dedicated exclusively to the aerospace industry supply chain.
“Thanks to the historic mobilization of our members and the support of all levels of government, we have found concrete solutions to leverage this crisis and build a stronger industry,” said Suzanne M. Benoît, President of Aéro Montréal. “The creation of a private equity fund is an excellent springboard that will propel the growth of our SMEs. In collaboration with the Québec government, we are once again strengthening the aerospace sector so that it can continue to create jobs and wealth throughout Québec and the world.”
CONTINUING THE WORK BEGUN WITH ACCELERATOR 360˚
The launch of this private equity fund completes the work undertaken by Aéro Montréal, through Accelerator 360°, to support SMEs in the sector. Created in 2018, this initiative aims to encourage strategic links and partnerships by supporting the development of SMEs on international markets. It helps companies by offering training and access to financing while fostering networking and consolidation among industry players.
“The difficulty in recruiting qualified labour or sourcing raw materials to be able to rapidly increase production rates are challenges that our companies must face in a context of recovery. In this environment of change, the growth of our SMEs depends on their ability to offer a wider-range of services to reach OEMs or Tier 1 and 2 suppliers on the international market,” explains Ms. Benoît. “With Accelerator 360° we are supporting the growth of Québec aerospace SMEs through measures that promote internationalization, consolidation and the regrouping of companies. We are providing the groundwork for forming strategic alliances. Having a private equity fund dedicated to the sector will allow companies to benefit from a comprehensive ecosystem capable of supporting them in their local and international growth projects.”