CAPE (Capital for Aboriginal Prosperity and Entrepreneurship) Fund is a $50 million private-sector investment fund recently launched by the former Prime Minister of Canada, Rt. Honourable Paul Martin and his son David Martin. CAPE Fund will be focused on mid-market opportunities with a strong degree of Aboriginal involvement and connection to Aboriginal communities throughout Canada.

The Fund’s sole investment focus will be to partner with Aboriginal groups and individuals to promote Aboriginal business, entrepreneurship and prosperity.  The Fund will partner in businesses by providing equity and quasi equity investment in varying amounts in the range of $1 million and $7.5 million (with most investments expected to be in the $3-5m range). These investments may be "one time" or "staged" depending on the growth and business requirements of the Fund's investee companies. CAPE Fund will not make investments in start-ups, unless they are backed by a strong and credible operating partner or that, at the very least, there is complete depth and experience in the management of the investee company.

The Fund was initiated by 21 of Canada’s leading companies, individuals and US-based Foundations, and will remain open to additional new investors for up to six months. Current investors include:

• Financial institutions: BMO, Sunlife, Scotiabank, TD, CIBC, Standard Life, RBC, Edco Financial
• Industry: Xstrata, Goldcorp, Barrick, Vale Inco, Teck, Nexen, SNC-Lavalin, Canada Steamship Lines
• Foundations: Skoll Foundation, Johnson Scholarship Foundation, Li Ka Shing Foundation

This is a milestone in social finance in Canada, with notable representation from Canada's largest financial and mining companies. The opportunities for investment in Aboriginal business remain strong, and the establishment of the Fund to promote Aboriginal entrepreneurship provides a mechanism to strengthen local economies while incorporating both a financial and social return. Though there are often inherent social, environmental and cultural benefits from investing in Aboriginal businesses, the Fund itself is clear about the nature of its operations: "(The Fund's) mission will require that it act with the same rigour, discipline and best practices with regards to the application of its investment guidelines, processes, and corporate governance standards applied in the private sector."

Find out more about the CAPE Fund at their website, and visit the Canadian Council for Aboriginal Business (CCAB) for relevant information on Aboriginal business.

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