The QEMP and CDPQ are renewing their collaboration to accelerate the development of emerging managers
Evovest Inc. obtains second QEMP mandate to develop its global market neutral equity strategy
Montréal, April 20, 2023 – The Québec Emerging Managers Program (QEMP) and CDPQ are proud to renew their collaboration to accelerate the development of emerging managers. This additional investment will bring CDPQ’s commitment in the QEMP to $250 million, or $50 million annually over the next five years. If needed, this contribution may reach a total of $500 million over five years.
With nearly $420 million in assets under management, the PGEQ Fund L.P. supports the creation of new active management firms in Québec, thanks to capital contributions by institutional investors and the support of established industry players. These include Innocap, a QEMP founding partner, which provides a rigorous institutional framework in terms of due diligence, risk management and continuous monitoring of the program.
“Through this commitment, CDPQ is reiterating its support for the QEMP to ensure the program’s long-term viability and to support the growth of emerging manager firms and Québec’s financial ecosystem,” said Mario Therrien, Head of Investment Funds and External Management at CDPQ. “Thanks to this investment, CDPQ will contribute to the development of a coaching program that seeks to drive the growth of emerging manager firms and build a network around them providing guidance throughout their growth.”
“We are delighted to receive the renewed support of CDPQ, one of QEMP’s core investors. CDPQ’s commitment underscores its confidence in the potential of emerging managers and gives us the means to match our ambitions by earmarking resources to assist managers with their growth and to raise their profile both at home and abroad,” added Carolyn Cartier-Hawrish, Director, QEMP.
Over the past few months, various initiatives were undertaken to enhance the QEMP and its practices and internal procedures. For example, the QEMP completed its Board of Directors review, a key milestone in efforts to strengthen its governance system with a more effective assignment of committee responsibilities, more agile decision making and greater Board diversity.
CDPQ’s additional commitment will also facilitate the creation of a coaching program designed to drive the firms’ growth while building a network around them and increasing their visibility to drive for faster growth. Marking a pivotal moment in terms of the QEMP’s future growth prospects, this progression is a testament to the program’s scope and standing.
Evovest: global development prospects
In addition, the QEMP announces the selection of Evovest Inc. (Evovest), an innovative equity portfolio manager, for a second structured mandate. The commitment announced by CDPQ and the capital contributed by co-investors will serve to launch the Evovest Global Market Neutral Fund L.P. for approximately $75 million.
This new global market neutral equity strategy will use a combination of long positions and short selling to diversify market risks while targeting a low correlation with traditional equity indexes and maintaining low volatility. Evovest’s systematic investment process will offer a blend of fundamental analysis expertise and deep knowledge of machine learning while seeking to generate diversified returns. Guided by a strong entrepreneurial vision and social conscience, the firm was recently certified B Corp and is a signatory of the Principles for Responsible Investment (PRI). In addition, this new fund will enhance the QEMP’s current alternative strategy offering by making more extensive use of artificial intelligence and ESG factors.
“We are very pleased to have obtained a second allocation for our global market neutral equity strategy. Being able to work closely with the QEMP and Innocap is a powerful tool that supports our growth and guides us towards the adoption of institutional best practices, boosting our credibility and recognition in the eyes of potential investors. Since it was launched, our traditional global equity strategy has already demonstrated the viability of our investment process, with value added of 13% as at the end of March 2023. We are convinced that this second mandate will build on that success. Aligning the interests of the various stakeholders is essential for our ecosystem and we are proud to pioneer this program,” said Carl Dussault, CEO of Evovest.
At CDPQ, we invest constructively to generate sustainable returns over the long term. As a global investment group managing funds for public pension and insurance plans, we work alongside our partners to build enterprises that drive performance and progress. We are active in the major financial markets, private equity, infrastructure, real estate and private debt. As at December 31, 2022, CDPQ’s net assets totalled CAD $402 billion. For more information about CDPQ, visit cdpq.com, follow us on Twitter or consult our Facebook or LinkedIn pages.
CDPQ is a registered trademark owned by Caisse de depôt and placement du Québec and licensed for use by its subsidiaries.
About the QEMP
Created in 2016, the QEMP’s mandate is to promote the growth of financial entrepreneurship in Québec by offering institutional investors diversified investment strategies managed by independent Québec-based emerging managers. This project was developed in connection with the work of Finance Montréal’s Entrepreneurship Work Group, in collaboration with established portfolio management firms. The QEMP seeks emerging managers offering traditional strategies (fixed income, Canadian equity, US equity, global equity, sustainable or ESG strategies, etc.) and alternative strategies (hedge funds, sustainable or ESG strategies and real asset funds, etc.) For more information about the QEMP, visit www.pgeq.ca/en or consult our LinkedIn page.
About Evovest Inc.
Evovest is an equity portfolio manager that targets a source of differentiated returns by combining investment expertise with artificial intelligence and machine learning for global equity products. In addition to being a certified B Corp, Evovest is a signatory of the United Nations’ Principles for Responsible Investment (PRI) and the Tobacco-Free Finance Pledge. For more information about Evovest and its mission, visit www.evovest.com or consult our LinkedIn page.
Since 1996, Innocap has offered institutional investors a superior model for structuring, monitoring and accessing their alternative investments thanks to its dedicated managed account platform. Innocap is the world’s premier dedicated managed account platform, with USD 53 billion in assets as at December 31, 2022, >235 funds and >USD 900 billion in assets held by clients using its technology. Innocap benefits from solid and committed long-term institutional shareholders such as CDPQ, BNY Mellon, BNP Paribas, Fonds de solidarité FTQ and Walter Global Asset Management. Innocap’s team is made up of over 300 innovative and talented individuals backed by robust financial technology. The company has seven offices worldwide, including its headquarters in Montréal. For more information about Innocap, visit www.innocap.com or consult our LinkedIn page.
For more information:
Senior Advisor, Media Relations, CDPQ
Director, Québec Emerging Managers Program
Head of Business Development, Evovest
Global Head of ESG and Impact Solutions, Innocap