Canada Growth Fund
Canada Growth Fund Inc. (“CGF”), is a $15 billion independent investment fund, operating at arm’s length from the Government of Canada. To keep Canada competitive on the global stage and to ensure it continues to be a leading destination for investment, CGF was established to drive innovation across new and traditional sectors of Canada’s industrial base.
Our Mandate and Strategic Objectives
The CGF Mandate consists of building a financially prudent portfolio of investments that unlock private sector investment in Canadian businesses and projects to help grow Canada’s economy at speed and scale on the path to emissions reductions, in the interest of remaining competitive globally over the longer term. CGF is intended to help Canada meet the following national economic and environmental goals (“Strategic Objectives”).
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Our Verticals and Investment Criteria
Projects that use technologies and processes (that have been proven in pilots but not yet widely adopted) to efficiently reduce emissions across the Canadian economy, including but not limited to, CCS, electrification and low-carbon electricity, as well as hydrogen and biofuels. CGF will take direct minority or control positions through a mix of debt, equity, hybrid instruments, and Contracts.
Clean technology companies, including small and medium enterprises, which are scaling less mature but proven technologies that are in the demonstration or commercialization stages of development. CGF will invest through i) direct investments focusing on minority growth equity positions, and ii) select commitments to third party fund managers and/or co-investment opportunities, where the strategy and objectives align with those of CGF.
Projects, companies, and technologies across low-carbon supply chains, including critical minerals, that will allow Canada to leverage its abundance of natural resources, help secure Canada’s supply chains, and improve Canada’s domestic and global competitiveness. CGF will invest through i) direct investments in projects and companies; ii) funds, whereby it commits to, and, where applicable, co-invests alongside, mining-focused specialist investment managers, and iii) co-investment alongside corporates, developing strategic partnerships with builders, operators, processing/refining partners and manufacturers.
Investment Criteria
When evaluating investment opportunities on behalf of CGF, CGFIM uses a set of Investment Criteria that supports a rigorous, fair, and consistent evaluation, while evaluating the alignment of opportunities with relevant aspects of the CGF Mandate. Notably, any one individual investment may not fully satisfy all Investment Criteria and Strategic Objectives of the CGF Mandate.
- Consistency with goals: The investment will advance the CGF Mandate and Strategic Objectives.
- Long-term benefits for Canada: The investment has a reasonable chance to strengthen the development of Canadian workers and generate knowledge that will produce long-term benefits for the Canadian economy. For example:
- Canadian presence: activities related to the project or company are done in Canada and/or may generate widely shared economic benefits in Canada.
- Intellectual property: the activity will enable the development, utilization, or commercialization of Canadian IP, or maintain Canadian ownership.
- Value chain creation: the investment will develop or strengthen Canadian competitiveness by participating in a new or existing value chain.
- Additionality: The investment may attract private sector investment, immediately or in the future, that would likely not have been secured without the participation of CGF.
- Financial soundness: The investment will fit within a portfolio that will target preservation of capital.
- Consistency with public disclosure sustainability-related principles: The investment will fit within a portfolio that will assist CGF in meeting internationally recognized standards of sustainability-related measurement, disclosure, and performance.
About us
To keep Canada competitive on the global stage and to ensure it continues to be a leading destination for investment, CGF was established to drive innovation across new and traditional sectors of Canada’s industrial base. Its investment mandate is focused on accelerating efficient emission reduction projects, helping Canadian clean technology companies scale up successfully, and capitalizing on Canada’s abundant natural resources and strengthening low-carbon supply chains.
By investing in and supporting the development of domestic expertise, intellectual property, knowledge, and technologies aligned with the CGF Mandate, CGF seeks to help Canadian businesses compete and win as global leaders. CGF achieves this through rigorous and proven investment discipline, fiscal prudence, effective governance, and an arm’s length operational model. CGF expects to deliver against its Strategic Objectives while preserving its capital and recycling its capital base over the long term.
CGF takes a unique value-add role in the investor ecosystem by deploying innovative financial structures–including through equity, debt, and hybrid instruments– to unlock new investment in an efficient and effective Canadian energy transition. It takes on carefully considered risks that help attract private capital and ultimately accelerate investment in Canadian projects and technologies. It aims to improve the risk profile of investment opportunities and attract additional private capital to projects, technologies, businesses and supply chains aligned with the CGF Mandate and Strategic Objectives.
Canada Growth Fund Investment Management Inc. (“CGFIM”), a wholly-owned subsidiary of PSP Investments, acts as the exclusive, arm’s length and independent investment manager of CGF. The CGFIM team has full discretionary authority over all aspects of investment management and transactions. Individual investment decisions are made by CGFIM’s investment committee based on investment acumen and fit with the CGF Mandate. All investment decisions are made in strict independence from the Government of Canada. The CGFIM team is comprised of investment professionals with extensive experience across a range of sectors and strategies, as well as expertise in structuring and executing complex investments.
By partnering with PSP Investments, CGF benefits from PSP Investments’ deep investment expertise and track record across a broad range of sectors and strategies, a mature and scalable operational ecosystem and a governance framework that is independent and at arm’s length from the Government of Canada, allowing CGF to rapidly and successfully deliver its mandate. CGF Investment Management’s activities are operationally distinct from PSP Investments’ pension investment mandate, and the assets of CGF and of PSP Investments are not commingled.
By partnering with PSP Investments, CGF benefits from PSP Investments’ deep investment expertise and track record across a broad range of sectors and strategies, a mature and scalable operational ecosystem and a governance framework that is independent and at arm’s length from the Government of Canada, allowing CGF to rapidly and successfully deliver its mandate. CGF Investment Management’s activities are operationally distinct from PSP Investments’ pension investment mandate, and the assets of CGF and of PSP Investments are not commingled.
As the parent of CGF Investment Management, PSP Investments’ Board of Directors has adopted the PSP Investments and Canada Growth Fund Conflicts Policy to address the risk of any real, potential or perceived conflicts of interest in the context of the investment management services provided by CGF Investment Management to CGF. The policy and any disclosure made pursuant to the terms thereof can be found here.