Fonds de solidarite FTQ

Quebec’s development capital leader

Fonds de solidarite FTQ began in 1984 as a development capital fund with a mission to boost provincial economic growth through the creation and protection of jobs by investing in small- and medium-sized businesses.

Today, as the largest development capital network in Quebec, Fonds de solidarite FTQ has grown to accumulate more than $8.2 billion of net assets. Reads the company website, “Fonds de solidarite FTQ has become a hub of knowledge and resources for Quebec businesses and a key player in the local economy.”

Fonds de solidarite FTQ emphasizes socially responsibility as well as sustainable economic development across all of its operations. Other services, including economic training offered to its partner companies, is one example of how value-add services of Fonds de solidarite FTQ contribute to economic growth and prosperity.

Company mission

Fonds de solidarite FTQ outlines its company mission with four pillars: to create, maintain, and protect jobs; to train workers; to develop the Quebec economy; and to prepare its investors for retirement.

In terms of job creation, Fonds de solidarite FTQ invests in companies which impact the local Quebec economy by offering services that create, maintain, and protect jobs. Job creation investment by Fonds de solidarite FTQ offers custom financing, in addition to traditional business financing sources, including equity loans (with an investment horizon of five to 10 years) and unsecured loans that require no collateral and offer a competitive, risk-based interest rate which is adjusted based on performance.

Fonds de solidarite FTQ also works to train staff through the promotion of economic training to better influence economic development in the province of Quebec. Specifically, in 1989, Fonds de solidarite FTQ announced its economic education program for its partner companies, with the objective to further business growth for its partners, and to promote overall improved financial health. Outlines the Fonds de solidarite FTQ website, “With this flexible program, employers choose the type of training best suited to their workers and most beneficial to the company.”

The main goals of the economic education program are to encourage effective communication between management and workers; to help employees better understand how the company operates; to promote teamwork and worker engagement; to explain Fonds de solidarite FTQ’s role in the company as a financial partner; and to describe the company’s business plan to better motivate company employees to further the company’s growth and success.

Investment benefits

In working to develop the local Quebec economy, Fonds de solidarite FTQ works to stimulate the economy through strategic investments benefitting both workers and companies. Fonds de solidarite FTQ believes it provides a unique advantage in this regard. The company has emerged as the top development capital leader in Quebec, offering unsecured financing, patient capital, sector expertise (with more than 56 investment professionals across 25 industries), multi-disciplinary expertise, a Quebec-wide network, and economic education. To date, Fonds de solidarite FTQ has financed 2,129 companies and invests nearly $700 million a week, according to the company website.

“Regardless of the challenges encountered along the way, Fonds de solidarite FTQ will be there because we take the long-term perspective,” reads the company website. “This approach results in an unusually close business relationship.”

In terms of its multi-disciplinary expertise, Fonds de solidarite FTQ has professionals trained in a multitude of sectors, including market analysis, legal matters, taxation, labour relations, due diligence, and asset investments. Headquartered in the Quebec hub of Montreal, Fonds de solidarite FTQ utilizes its provincial network through its establishment of 16 regional funds and 85 local funds.

Part of the company structure of Fonds de solidarite FTQ also encourages its shareholders to prepare for retirement by offering “outstanding tax benefits and reasonable returns on investment.”

Fonds de solidarite FTQ makes workers aware of the importance of retirement savings. Part of this emphasis toward building retirement savings encourages workers to invest, particularly by purchasing shares of Fonds de solidarite FTQ. Workers investing in Fonds de solidarite FTQ receive, among other advantages, two major benefits: tax credits, with 15 per cent on both provincial and federal taxes, as well as a tax deduction granted to all RRSP holders, provincially and federally.

“RRSP (30 per cent more savings than a conventional RRSP) and higher tax savings, development capital and investments in small- and medium-sized enterprises…that’s the Fonds de solidarite FTQ,” summarized the company website.

Looking toward the future, Fonds de solidarite FTQ looks to remain an active and key player in the local Quebec economy.