Date Closed

September 26, 2023

Lead Office

Québec City

Value

71.00 Million CAD

On September 26, 2023, Desjardins Financial Holding Inc. ("Desjardins"), Caisse de dépôt et placement du Québec ("CPDQ"), BDC Capital, Industrial Alliance Financial Group ("iA Financial Group"), and Fonds de solidarité FTQ invested as limited partners in the first close of the newly-created Luge Capital Fund II (the "Fund"). This first closing of the Fund reached C$71 million towards an ultimate fund size of C$100 million. The Fund is the second fund of Luge Capital and will invest in early-stage fintech startups in Canada and the United States including verticalized fintech startups that operate at the intersection of financial services and other large industries, as well as fintech-oriented environmental, social and corporate governance (ESG) startups.

Desjardins, headquartered in Levis, Quebec, is a cooperative financial group that provides insurance services such as life and health insurance, credit insurance, and retirement savings products, as well as assistance and financial planning services.

CPDQ, based in Quebec City, Quebec, is a long-term institutional investor that manages funds primarily for public and parapublic pension and insurance plans.

BDC Capital, headquartered in Montreal, Quebec, is the investment arm of the Business Development Bank of Canada, a Crown corporation.

iA Financial Group, based in Quebec City, Quebec, is one of the largest insurance and wealth management groups in Canada, with operations in the United States.

Fonds de solidarité FTQ, headquartered in Montreal, Quebec, is a development capital investment fund that deploys the savings of Quebecers.

Luge Capital, based in Montreal, Quebec, is a fintech-focused venture capital firm that invests in early-stage companies in Canada and the United States.

McCarthy Tétrault represented Desjardins, CPDQ, BDC Capital, Sun Life, Industrial Alliance Financial Group, and Fonds de solidarité FTQ with a team led by Mathieu Laflamme that included Alexandre Saulnier-Marceau, Ahmed Kisserli, Kim Godbout (Business), Kassandra Grenier, Julien Leblanc and Christian Meighen (Tax).