In Budget 2022, the Minister of Finance announced the creation of the $15 billion Canada Growth Fund (“CGF”), which was stood up as a subsidiary of Canada Development Investment Corporation (“CDEV”) in December 2022. CGF has been formed for the purpose of making investments that catalyze substantial private sector investment in Canadian businesses and projects to help transform and grow Canada’s economy at speed and scale to net zero.
This new fund will help attract private capital to build Canada’s clean economy by using investment instruments that absorb certain risks in order to encourage private investment in low carbon projects, technologies, businesses, and supply chains.
Budget 2023 announced that CGF will engage the services and expertise of the Public Sector Pension Investment Board (“PSP Investments”) and its personnel in the implementation of the CGF mandate. PSP Investments will act as the independent investment manager of CGF.
CDEV will oversee the performance of the investment manager but will not be directly involved in CGF’s investment activities.
The Department of Finance released a Technical Backgrounder in 2022 with additional information about the fund.