The Caisse de dépôt et placement du Québec and AXA, via its subsidiary AXA Private Equity, have decided to step up their joint private equity efforts on the key markets of North America, Europe and Asia.

The two organizations have been partners since 1996

The agreement signed today in Paris between the two groups has several components. First, the two organizations will consolidate their joint position on Europe’s mid-sized enterprise market through direct investments, funds of funds or a co-investment fund.

The second component of the agreement calls for development, through AXA Private Equity in Asia, of a fund specializing in the Asian market. AXA Private Equity and the Caisse de dépôt et placement du Québec will be the two main partners in the fund.

AXA Private Equity and the Caisse will also work together to develop an investment structure for the mid-sized market in the United States, through a fund of funds and a co-investment fund.

Finally, the Caisse and AXA Private Equity intend to pool their resources to ensure more effective coverage of market intelligence and will share information on best management practices, especially through exchanges of personnel. It should be noted, however, that both partners will maintain their independence in terms of conduct of business. Together, the two organizations will provide more than 1.5 billion euros ($2.09 billion) to implement this agreement.

According to Henri-Paul Rousseau, president and CEO of the Caisse, this agreement will be beneficial for the institution. “Together, our two institutions have the ability to provide substantial amounts of capital and respond quickly to business financing needs.” Normand Provost, executive vp, private equity, added that “by combining the expertise of our teams, we’re convinced that the synergies will swiftly generate added value for both organizations.”