Royal Bank of Canada (RBC) will deploy up to C$1 billion for a new growth fund and direct equity investments. CEO Dave McKay announced the initiative at the bank's annual meeting to support homegrown companies.
The fund aims to help Canadian businesses scale domestically. This strategy addresses a trend where entrepreneurs seek foreign capital and eventually exit the home market.
RBC expects the investment to close a significant national funding gap. The bank will complement the capital with its existing lending, underwriting, and advisory services.
RBC is also expanding its specialized teams to focus on sectors of national importance. These sectors include defense, infrastructure, and project finance.