MAGNUM Capital Partners has secured new backing for its debut private equity fund, including a $2 million commitment from the Business Development Bank of Canada (BDC) via its Thrive Entrepreneurship through Acquisition Fund. The investment marks BDC’s first entry into the search fund space, supporting what MAGNUM describes as Canada’s first women-led private equity fund focused on this model.
The funding forms part of Magnum Capital Fund I and represents a key step for both the firm and the search fund segment in Canada. The partnership aims to support entrepreneurs acquiring and managing established Canadian companies, with particular attention on succession opportunities across the market.
“We are thrilled to partner with a pioneering firm like MAGNUM,” said Sévrine Labelle, Managing Director, Thrive Lab & Thrive ETA Fund, BDC. “We believe the search fund model offers a powerful pathway to entrepreneurship and we are proud to make our first investment in this asset class with a firm led by a trailblazing woman who knows firsthand the challenges and opportunities of being a search fund entrepreneur. We launched our Thrive ETA Fund last month to accelerate business acquisitions by women entrepreneurs. Supporting the growing wave of business ownership transitions is part of our mission as Canada’s development bank.”
The search fund model, widely used in other regions, allows entrepreneurs to acquire mature businesses with proven track records and then take on leadership roles within them. Although the approach is gaining traction, it remains relatively new in Quebec.
MAGNUM said interest in the model is strengthening, supported by contributions from well-known Quebec investors Patrick Pérus, through Capital d’Expérience, and Éric Lemieux via his family office Eclo Investissements, who have joined as limited partners.
Citing figures from Repreneuriat Québec, the firm noted that 9,700 private companies in the province intend to transfer ownership within the next 12 months. “The search fund model provides a vital solution to the succession crisis facing many Quebec businesses,” said Patricia Riopel, Founding Partner at MAGNUM. “It empowers the next generation of leaders to build upon the legacy of successful companies, ensuring their continued growth and contribution to the Quebec economy. The support from seasoned entrepreneurs like Patrick and Éric is a testament to the model’s potential. Our goal is to demystify this path to entrepreneurship.”
MAGNUM stated that the commitments reflect rising confidence in the model and its potential to support business continuity in the region.
