CDPQ and CGF invest in MKB’s $145m energy transition fund

The Canada Growth Fund (CGF) and Caisse de dépôt et placement du Québec (CDPQ) are two of the investors supporting MKB’s latest energy transition fund, which has raised $145m (€131m).

The MKB Partners Fund III fund secured a commitment of up to $50m from CGF, $35m each from CDPQ and Investissement Québec (IQ) and a $25m commitment from BDC Capital.

North American private investment firm MBK said the fund will focus on investing in growth-stage companies that are commercialsing innovative, proven technologies designed to reduce emissions in sectors such as clean energy, mobility, built environment and industrials.

Patrick Charbonneau, president and CEO of Canada Growth Fund Investment Management, said: “Through its cleantech funds strategy, CGF is seeking to provide further investable capital to Canadian managers to speed up the growth of Canadian cleantech champions.

“CGF is pleased to invest $50m in MKB’s energy transition fund to scale the impact of its strategy and to foster growth and innovation in the Canadian clean technology sector.”

Kim Thomassin, EVP and head of Québec at CDPQ, said: “This additional investment in MKB – a Montréal-based firm focused on accelerating the energy transition – not only positions our capital in a promising and profitable sector for our economy, but also confirms our ambition to encourage the sustainable growth of companies.

“It’s an opportunity for us to support climate technology that will have an impact on decarbonisation and will shape our future.”

Bicha Ngo, president and CEO, Investissement Québec, said: “Along with key partners in Québec’s financial ecosystem, Investissement Québec is proud to take part in this round initial closure, which is completely in line with its mission.

“Acting in a sector that is strategically important for the sustainable development of our economy, MKB Partners Fund III will help consolidate the capital chain and accelerate investments in the energy transition.”

Paula Cruickshank, SVP of fund investments at BDC Capital, said: “BDC is delighted to co-anchor MKB’s third fund, recognising the team’s commitment to Canadian clean technology companies and the clear alignment with our corporate values. 

“The fund’s orientation on late and growth-stage opportunities responds to a critical need in the Canadian market, supporting the often-complex capital requirements of homegrown cleantech ventures and facilitating their expansion.”

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