Canadian Imperial Bank of Commerce (CIBC) and other Canadian financial firms have been in talks for months to establish a fund that will assist smaller companies. As soon as Thursday, a fund worth at least C$500 million to help small and medium-sized companies grow where other funding options are limited.
The country’s six biggest banks, insurance companies and regional lenders will back the fund. CIBC Chief Executive Office Victor Dodig has been pushing for such a fund for over a year, with the idea gaining traction among business leaders and public servants more recently.
In February Prime Minister Justin Trudeau’s external Advisory Council on Economic Growth recommended the government aid private investors in creating a C$1 billion fund to take minority stakes in “established” and fast-growing companies.