BDG Access Fund
The BDG Access Fund LP is a Montreal-based private equity firm active in the small-to-medium-enterprise (“SME”) sector – defined as business having an enterprise value between $10 to $100M and under 500 employees. BDG & Partners has a +10-year track record of successfully executing on its of SME buyout strategy by identifying, owning, and developing successful companies through an operational approach.
The BDG Access Fund LP is a limited partnership formed for the sole purpose of investing in BDG Fund III, a Quebec limited partnership. The general partner of the BDG Fund III is BDG-Appalaches (General Partner) Inc., a Quebec limited liability company and the carried interest partner, BDG III Carry Partner, L.P., is a Quebec limited partnership. The underlying sponsor of BDG Fund III is BDG & Partners.
Why Invest?
- In Canada, there is a total of 1,190,000 “small” (employing 1-99 workers) and 23,395 “medium”-sized (employing 100-499 workers), constituting 2.1 million employees.
- As company founders and owners approach retirement, they are increasingly exploring business transfer opportunities (52% of entrepreneurs intend to sell or transfer their business to someone outside their family). This trend represents the largest intergenerational wealth transfer in the country’s history.
- Entrepreneurs who are planning to retire are hesitant to continue developing their businesses or to take risks to increase returns, revealing untapped growth potential for potential buyers.
The BDG Fund seeks to invest in Canadian Mid-Market businesses falling within the following parameters:
- Growth market: Portfolio Companies exposed to markets with strong long-term fundamentals and favorable growth prospects allowing the businesses to evolve under solid long term business conditions.
- Geographical location: Portfolio Companies having their headquarters and their principal operations located in Canada
- Established business model: Profitable Portfolio Companies, well established, mature with a solid revenue base from quality customers, and sustainable competitive and market position advantages.
- Specific sectors: Even though the BDG Fund is sector-agnostic, focus will be to invest in Portfolio Companies operating in manufacturing processing, distribution and specialized services sectors, and businesses ancillary to such sectors.
- Positions: The BDG Fund, as buy-out investor, will acquire majority positions in Portfolio Companies, therefore at least 51% of controlling shares.
- Instruments: The BDG Fund will mainly acquire equity and quasi-equity instruments in respect of its investments in Portfolio Companies. The BDG Fund may also acquire debt instruments in combination with equity instruments as part of its buy-out strategy.
Fund Details
1 1 year from the initial commitment, a monthly services fee of $250 which shall increase by an additional $250 on each subsequent anniversary, will commence.
