Protecting shareholders' interests and supporting Quebec businesses
MONTREAL, Aug. 22, 2025 /CNW/ - Capital régional et coopératif Desjardins (CRCD) is announcing a strategic shift in its business model that will come into effect on January 1, 2026, in collaboration with the fund's manager, Desjardins Capital Management Inc. (Desjardins Capital). The new business model will allow CRCD to continue playing a key role in Quebec's business ecosystem by meeting the needs and expectations of its shareholders and increasing its investments in the growth and sustainability of local businesses.
"As CRCD nears its 25th anniversary, this new business model is a major milestone in the fund's evolution. It's a change that reflects the board of directors' commitment to improving performance management and fostering sustainable value creation, both of which are critical to CRCD's long-term success. Some details are still being finalized, but it's clear that this strategic shift will open the door to new market opportunities and strengthen our governance, for the benefit of all our shareholders. We're embarking on this new chapter with confidence and determination."
Jean-Guy Senécal, Chair, CRCD Board of Directors
Indirect investment model
Starting on January 1, 2026, CRCD will carry out all of its investments impacting the Quebec economy activities exclusively through indirect means, by investing in private partner funds established and managed by Desjardins Capital. These partner funds will primarily invest directly in Quebec businesses, both in debt and equity, as well as in external private funds managed by firms other than Desjardins Capital. These changes to the business model will not affect the management of CRCD's other investments portfolio.
As part of the transition, CRCD plans to invest in three partner funds managed par Desjardins Capital that aim to support economic development in Quebec by fostering the growth and development of businesses across the province in all sectors.
Each partner fund will have a distinct investment strategy that targets specific sectors or asset classes (debt and/or equity). One of these funds will be exclusive to CRCD, while other institutional investors will be able to invest alongside CRCD in the other two funds. In the future, CRCD may also invest in any other partner fund set up and managed by Desjardins Capital, provided it meets CRCD's needs and its objectives for investing in the Quebec economy.
Updated fee structure
As a result of these changes to CRCD's business model, the fund's fee structure will also shift. Although the method used to calculate the total fees paid by CRCD to Desjardins Capital will change as of January 1, 2026, the management and administration fees it pays to Desjardins Capital will remain capped at 1.75% of CRCD's annual average assets' value, after deducting any amounts payable related to investments impacting the Québec economy and other investments and the adjustment made to avoid double billing relative to CRCD's interests in other investment funds, whether in the investments impacting the Québec economy portfolio or in the other investments portfolio.
Under the new fee structure, CRCD, as a limited partner in the partner funds managed by Desjardins Capital, will pay separate management fees for each fund in which it invests according to a specific rate for that fund. These management fees will be paid for services provided by Desjardins Capital as manager of these funds, based on the amount CRCD invests in each of the funds. They will also include fees based on the performance of each fund. These management fees will include IT development and maintenance costs related to the management of the funds, and they will be deducted from each of the fund's returns.
CRCD will also pay Desjardins Capital administration fees for services it provides as an investment fund manager to meet CRCD's needs in terms of operations, financial strategies, assets, share ownership, risk, capitalization, shareholder relations, governance and reporting. These administration fees will include IT development and maintenance costs related to these services, and they will be included in CRCD's operating expenses.
CRCD is in the midst of finalizing negotiations with Desjardins Capital over the fee structure, making sure it is in line with the fees of comparable products and services on the market. If the total fees under the new fee structure turn out to be higher than the 1.75% cap, the new structure will not come into effect until December 31, 2027, once all required regulatory processes have been completed.
About Capital régional et coopératif Desjardins
With more than 109,000 shareholders, Capital régional et coopératif Desjardins (CRCD) invests its pooled capital in Quebec businesses to promote wealth creation across all regions and for future generations. A public company with net assets of $2,665 million, CRCD leverages the financial tools it has developed alongside Desjardins Capital, which manages it. This foundational ecosystem aims to boost, showcase and firmly establish Quebec's top entrepreneurial talent. As at June 30, 2025, $2,184 million has been committed to support more than 700 businesses, cooperatives and funds from all sectors and regions across Quebec. www.capitalregional.com
SOURCE Desjardins Group
For more information: Media inquiries only: Desjardins Group Public Relations, 514-281-7000, ext. 5553436, [email protected]; For investors: Shareholder services, 1-888-522-3222, [email protected]
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