The Regional Economic Intervention Fund (FIER) is a development fund designed to help companies obtain financing (equity or quasi-equity) at the start-up, development, succession and turnaround stages. It also aims to support the creation of sector funds and the implementation of development projects, mainly in the regions.

The initial capitalization of the fund is mixed (public-private) and totals $408 million drawn from the following sources:

• $318 million from the Québec government, via a subsidiary of Investissement Québec, IQ FIER inc.;
• $50 million from the Fonds de solidarité FTQ;
• $25 million from Capital régional et coopératif Desjardins;
  $15 million from Fondaction (CSN).

This capitalization is completed by private investments so that the FIER can reach $682 million.

2009-2011 BALANCE SHEET

The number of investments made and amounts invested by the FIER-Régions (Regional Economic Intervention Funds) and the Fonds-Soutien (Support Funds) in companies experiencing significant growth.

FIERS-Régions and Fonds-Soutien Summary

For more details, please consult the National Assembly's website (French Website).

THE THREE COMPONENTS OF THE FIER

Support Funds

Support Funds are set up under the aegis of regional conferences of elected officials (CRÉ) that select their management entity.

• The maximum government contribution is $2 million per CRÉ (total government contribution of $36 million. An amount of $6 million was transferred to the FIER-Régions.).
• For each dollar invested by the community, the government injects $2 (the total envelope of the funds can reach $54 million).
• As an incentive measure, the government waives its right to the yield on its share of capital invested during a period of five years.
• The maximum investment is $250 000 per business, consisting of equity or quasi-equity.
• The entity responsible is selected by the CRÉ and accredited by IQ FIER inc.

FIER-Regions

Regional investment funds are designed to help the capitalization of businesses in the start-up, development, succession and turnaround phases. These funds are managed by limited partnerships in which the sector of the regional community holds a majority.

• Maximum government contribution of $10 million per funds (total government contribution of $192 million. An amount of $6 million has been transferred from the Support Funds.).
• For each dollar invested by the private sector, the government injects $2 (the total envelope of the funds can reach $288 million).
• As an incentive measure, the government waives its right to the yield on its share of capital invested during a period of five years.
• The maximum assistance amount is $750,000 per company, in the form of equity or quasi-equity, for a Fund with maximum subscribed capital of less than $15 million. For Funds with maximum subscribed capital of $15 million and more, the maximum investment is $1 million.
• The limited partnerships are accredited by IQ FIER inc.

FIER Partners l.p.

www.fierpartenaires.com/en

The objective of the FIER Partners limited partnership, the third component of the Regional Economic Intervention Fund (FIER), is to support the creation of sector development funds and seed investment funds, in addition to financing development projects.

Sector Fund

Fund consisting of venture capital designed to support a traditional, technology or emerging sector in certain fields of excellence in the regions.

• The capital outlay of the limited partnership is $85 million.
• The capital outlay of FIER Partners in a sector development fund must not exceed $10 million.
• For every $2 invested by the private sector, FIER Partners injects $1.
• Sector development funds must be created and managed in Québec.
• The fund can invest in every region of Québec.

Seed Investment Fund

Fund designed to satisfy the financing needs of seeding-stage technology companies.

• The capital outlay of the limited partnership must not exceed $55 million.
• Participation in a seeding-stage fund cannot exceed $25 million.
• For every $1 invested by the private sector, FIER Partners injects up to $1.
• The seed investment fund must be created and managed in Québec.

Regional Development Project

Fund designed to support developmental, strategic and catalyst projects in the regions.

• The capital outlay of the limited partnership is $30 million.
• The contribution of FIER Partners ranges from $5 million to $20 million per project.
• The total participation of the limited partnership in a developmental project must correspond to roughly 30%, but never exceed 50%, of the project's total non-secured financing.
• The fund is intended chiefly for projects in the regions.

ROLE OF THE IQ FIER INC. SUBSIDIARY

• Accredit Support Funds and FIER-Regions by prioritizing management and governance rules.
• Coordinate follow-up and ensure public accountability of each fund.
• Forward the amounts to the appropriate funds.
• Participate as a partner in the FIER PARTNERS limited partnership.

PROCEDURE

FIER-Regions and Support Funds

If you require any information about FIER-REGIONS  and SUPPORT FUNDS, please contact us at 1 866 870-0437.

FIER Partners

Contact us at 1 866 870-0437  to find out how to proceed.

March 2013