la « notice d`offre

Les parts décrites dans la présente notice d’offre (la « notice d’offre ») sont offertes dans le cadre d’un
placement privé aux termes de dispenses des exigences d’établissement et de dépôt d’un prospectus auprès des
autorités en valeurs mobilières. Les parts décrites dans la présente notice d’offre ne sont offertes que là où
l’autorité compétente a accordé son visa et qu’aux personnes auxquelles elles peuvent être légalement offertes.
La présente notice d’offre ne constitue pas un prospectus ni une publicité visant un placement public de ces
parts et ne devrait en aucun cas être interprétée comme tel. Aucune autorité en valeurs mobilières du Canada
ne s’est prononcée sur la qualité des parts offertes ni n’a examiné la présente notice d’offre. Quiconque
donne à entendre le contraire commet une infraction.
___________________________________________________________
FONDS FIERA D’INFRASTRUCTURE PRIVÉ
___________________________________________________________
NOTICE D’OFFRE
Le 16 juin 2014
TABLE DES MATIÈRES
SOMMAIRE DU PLACEMENT ............................................................................................................... I
LE FONDS D’INFRASTRUCTURES ...................................................................................................... 1
POLITIQUE DE PLACEMENT ............................................................................................................... 2
GESTION DU FONDS D’INFRASTRUCTURES ................................................................................... 4
PARTS DU FONDS D’INFRASTRUCTURES........................................................................................ 8
DÉTERMINATION DE LA VALEUR LIQUIDATIVE ........................................................................ 10
PLACEMENT DANS LE FONDS D’INFRASTRUCTURES ............................................................... 10
RACHAT DE PARTS ............................................................................................................................. 12
TRANSFERT DE PARTS ....................................................................................................................... 15
RÉMUNÉRATION ET FRAIS ............................................................................................................... 15
RÉMUNÉRATION DES COURTIERS .................................................................................................. 17
DISTRIBUTIONS ................................................................................................................................... 18
INCIDENCES FISCALES FÉDÉRALES CANADIENNES ................................................................. 19
ADMISSIBILITÉ AUX FINS DE PLACEMENT .................................................................................. 24
FACTEURS DE RISQUE ....................................................................................................................... 24
RAPPORT AUX PORTEURS DE PARTS ET ASSEMBLÉES DES PORTEURS DE PARTS ........... 34
MODIFICATION DE LA CONVENTION DE FIDUCIE ET DISSOLUTION DU FONDS DE
PLACEMENT.......................................................................................................................................... 35
AUDITEURS ........................................................................................................................................... 36
DÉPOSITAIRE ET ADMINISTRATEUR ............................................................................................. 36
CONSEILLERS JURIDIQUES ............................................................................................................... 36
CONTRATS IMPORTANTS .................................................................................................................. 36
DROITS D’ACTION PRÉVUS PAR LA LOI ET DROITS D’ACTION CONTRACTUELS .............. 36
RÉPERTOIRE ......................................................................................................................................... 48
ANNEXE A ............................................................................................................................................. 49
ANNEXE B ............................................................................................................................................. 57
SOMMAIRE DU PLACEMENT
Le texte qui suit constitue un sommaire des modalités d’un placement dans le Fonds d’infrastructures (défini
ci-après). Il doit être lu en entier à la lumière des renseignements plus précis figurant dans la présente notice
d’offre et des renseignements figurant dans la convention de fiducie du Fonds d’infrastructures (définie
ci-après). Les investisseurs éventuels sont priés de consulter leurs propres conseillers professionnels quant aux
conséquences fiscales et juridiques d’un placement dans le Fonds d’infrastructures. À moins d’indication
contraire, tous les montants sont exprimés en dollars canadiens. À moins d’indication contraire, l’expression
« part » désigne de façon générale les parts du Fonds Fiera d’infrastructure privé et (ou) les parts du Fonds
Fiera court terme Plus, selon le contexte.
Le Fonds d’infrastructures
Le fonds d’investissement offert aux présentes est le FONDS FIERA
D’INFRASTRUCTURE PRIVÉ (le « Fonds d’infrastructures »).
Le Fonds d’infrastructures est une fiducie créée le 28 février 2014 sous le régime
des lois du Québec aux termes d’une convention de fiducie modifiée et mise à
jour, datée du 28 février 2014, dans sa version modifiée, mise à jour ou
complétée à l’occasion (la « convention de fiducie »). TRUST BANQUE
NATIONALE INC. (le « fiduciaire ») est le fiduciaire du Fonds d’infrastructures, et
CORPORATION FIERA CAPITAL (« Fiera » ou le « gestionnaire ») est le
gestionnaire du Fonds d’infrastructures aux termes de la convention de fiducie.
Séries et parts
Les placements dans le Fonds d’infrastructures sont représentés par des parts de
fiducie d’une série du Fonds d’infrastructures. Le Fonds d’infrastructures est
autorisé à avoir un nombre illimité de séries de parts (chacune une « série »),
émises en un nombre illimité de sous-séries (les « sous-séries »), dont le
gestionnaire peut établir les modalités. Chaque part d’une série ou d’une soussérie représente une participation véritable indivise dans les actifs nets du Fonds
d’infrastructures attribuables à cette série de parts. Le nombre de parts de
chaque série et de chaque sous-série est illimité.
Le Fonds d’infrastructures comporte actuellement les deux séries de parts
suivantes :
i) Parts de série A : Cette série de parts est émise au moyen du produit de
rachat provenant du rachat des parts de catégorie IA du Fonds du marché
monétaire (tel qu’il est décrit ci-après). Les parts de série A sont conçues
pour les investisseurs qui ne sont pas admissibles à l’acquisition des parts
de série F;
ii) Parts de série F : Cette série de parts est émise au moyen du produit de
rachat provenant du rachat des parts de catégorie IF du Fonds du marché
monétaire (tel qu’il est décrit ci-dessous). Les parts de série F sont conçues
pour les investisseurs qui ont adhéré à un programme de services assortis
de frais ou à un programme intégré parrainé par un courtier et qui doivent
payer des frais annuels en fonction des actifs gérés plutôt que des
commissions sur chaque opération ou, à l’appréciation du gestionnaire,
pour tout autre investisseur pour lequel le gestionnaire n’engage aucuns
frais de placement.
Des séries de parts supplémentaires pourront être créées à l’avenir sans que les
porteurs de parts existants du Fonds d’infrastructures (les « porteurs de parts »)
en soient avisés et que leur approbation soit obtenue. Veuillez vous reporter à la
rubrique « Parts du Fonds d’infrastructures ».
Certains frais, y compris les frais de gestion et la rémunération liée au
rendement, et les passifs du Fonds d’infrastructures, tels qu’ils sont indiqués
dans la présente notice d’offre ou déterminés par le fiduciaire ou le gestionnaire
à leur seule appréciation, sont attribués exclusivement à une série particulière de
parts du Fonds d’infrastructures (les « frais de la série »). Veuillez vous
reporter à la rubrique « Parts du Fonds d’infrastructures ».
Politique de placement du
Fonds d’infrastructures
Objectif de placement fondamental
L’objectif de placement fondamental du Fonds d’infrastructures consiste à
dégager des rendements intéressants qui sont rajustés en fonction du risque au
moyen de placements dans des actifs d’infrastructure situés au Canada et aux
États-Unis.
Stratégie de placement
Pour atteindre son objectif de placement fondamental, le Fonds d’infrastructures
cherchera à composer un portefeuille diversifié d’actifs d’infrastructure
directement, au moyen de l’acquisition de capitaux propres, de titres de créance
assimilables à des titres de capitaux propres, de dettes subordonnées et
convertibles et d’autres placements connexes à des capitaux propres dans des
actifs d’infrastructure au Canada et (ou) aux États-Unis et (ou) indirectement, au
moyen de placement dans des structures d’accueil ou des fonds de placement qui
se concentrent sur l’investissement dans des actifs d’infrastructure au Canada
et (ou) aux États-Unis (chacun d’eux étant un « Fonds sous-jacent »).
Le gestionnaire prévoit investir une partie importante des actifs du Fonds
d’infrastructures, directement ou indirectement, dans l’une ou l’autre de :
Société en commandite Fiera Axium Infrastructure Amérique du Nord, Société
en commandite Fiera Axium Infrastructure Canada II et (ou) Fiera Axium
Infrastructure US Limited Partnership (les « Fonds Fiera Axium »). Les Fonds
Fiera Axium sont gérés par Fiera Axium Infrastructure Inc. et par sa filiale en
propriété exclusive, Fiera Axium US Inc. (collectivement, « Fiera Axium »).
Fiera est propriétaire actuellement d’une partie importante (35 %) des actions de
Fiera Axium. Pour de plus amples renseignements sur Fiera Axium et les Fonds
Fiera Axium, veuillez vous reporter à la notice d’information confidentielle
jointe à la présente notice d’offre uniquement à des fins de renseignements à
l’Annexe B. Voir également « Gestion du Fonds d’infrastructures – Conflits
d’intérêts ».
Le Fonds d’infrastructures peut également rechercher une exposition directe ou
indirecte (au moyen d’instruments dérivés, notamment des contrats à terme) à
d’autres Fonds sous-jacents, lesquels peuvent inclure des fonds gérés par le
gestionnaire ou les membres de son groupe.
Afin d’accroître la liquidité du Fonds d’infrastructures, le gestionnaire veillera à
maintenir environ 20 % des actifs du Fonds d’infrastructures dans un
portefeuille liquide composé d’instruments du marché monétaire et de titres à
revenu fixe (le « portefeuille de liquidités »).
Objectif de rendement
Le gestionnaire cherche à dégager un rendement total d’entre 8 % et 10 % l’an
pendant des périodes mobiles de cinq ans.
Placements autorisés
Le Fonds d’infrastructures ne peut investir que dans des titres déterminés.
Veuillez vous reporter à la rubrique « Politique de placement – Placements
autorisés ».
Gestion des risques
Des lignes directrices en matière de placement ont été élaborées pour le Fonds
d’infrastructures afin que les risques soient gérés. Se reporter à la rubrique
« Politique de placement – À moins de mention contraire dans la notice d’offre,
le Fonds d’infrastructures n’investira pas dans un fonds géré par le gestionnaire
ou l’un des membres de son groupe, sauf s’il a pris les mesures appropriées pour
s’assurer qu’aucuns frais de gestion ne seront versés au gestionnaire ou à l’un
des membres de son groupe relativement au placement du Fonds
d’infrastructures dans un tel fonds.
Gestion des risques – Portefeuille de liquidité ».
Restrictions en matière de placement
Le Fonds d’infrastructures est assujetti à plusieurs restrictions en matière de
placement. Veuillez vous reporter à la rubrique « Politique de placement –
Restrictions en matière de placement ».
Le gestionnaire
Fiera est le gestionnaire du Fonds d’infrastructures et est chargé de ses activités
quotidiennes, dont la gestion de ses portefeuilles de placement. Fiera est
également le gestionnaire du Fonds du marché monétaire (au sens donné à cette
expression ci-après).
Le siège social du gestionnaire est situé au 1501, avenue McGill College,
bureau 800, Montréal (Québec) H3A 3M8, et son bureau principal est situé au
1 Adelaide Street East, Suite 600, Toronto (Ontario) M5C 2V9. Le gestionnaire
est inscrit comme gestionnaire de portefeuille et courtier sur le marché dispensé
dans toutes les provinces et tous les territoires du Canada. Fiera est également
inscrite comme gestionnaire de fonds d’investissement dans les provinces
d’Ontario et du Québec. De plus, le gestionnaire est inscrit au Québec comme
gestionnaire de portefeuille d’instruments dérivés en vertu de la Loi sur les
instruments dérivés (Québec), et en Ontario et au Manitoba comme gestionnaire
d’opérations sur marchandises en vertu de la Loi sur les contrats à terme sur
marchandises (Ontario) et de la Loi sur les contrats à terme de marchandises
(Manitoba). Le gestionnaire est l’entreprise combinée qui a résulté de la fusion
en 2010 de Fiera Capital Inc. et de Sceptre Investment Counsel Limited,
chacune ayant été créée respectivement en 2003 et 1955. Avec prise d’effet le
2 avril 2012, le gestionnaire a acquis les activités de Gestion de portefeuille
Natcan inc. (« Natcan ») et a changé sa dénomination pour Corporation Fiera
Capital. Par suite de cette opération, Banque Nationale du Canada, par
l’entremise de Natcan, détient environ 35 % des actions en circulation du
gestionnaire et, en date de la notice d’offre, une option permettant d’acquérir des
actions supplémentaires. Si cette option est exercée intégralement, cette
participation passerait à au plus 37,5 % des actions en circulation du
gestionnaire. Fiera est un gestionnaire financier indépendant inscrit en bourse et
doté d’un actif sous gestion d’environ 67 G$ en novembre 2013. Fiera offre des
solutions de placement de styles multiples par l’intermédiaire de stratégies de
placement diversifiées aux investisseurs institutionnels, aux clients détenteurs de
patrimoine et aux épargnants.
Le fiduciaire
Trust Banque Nationale Inc. est le fiduciaire du Fonds d’infrastructures.
Placement dans le Fonds
d’infrastructures au moyen
du Fonds du marché
monétaire
Les parts du Fonds d’infrastructures ne sont pas directement offertes aux
investisseurs. Les investisseurs qui souhaitent investir dans le Fonds
d’infrastructures doivent préalablement souscrire des parts du FONDS FIERA
COURT TERME PLUS (le « Fonds du marché monétaire ») jusqu’à ce que le
gestionnaire décide, à son seul gré, d’accepter les souscriptions pour le Fonds
d’infrastructures. L’offre de souscription décrivant les caractéristiques du Fonds
du marché monétaire est annexée à la présente notice d’offre en Annexe A
(l’« offre de souscription du marché monétaire »).
Comme il est décrit dans l’offre de souscription du marché monétaire, les parts
de catégorie IA et les parts de catégorie IF du Fonds du marché monétaire seront
offertes à leur valeur liquidative applicable de la catégorie calculée à la
prochaine date d’évaluation applicable du Fonds du marché monétaire.
La décision d’accepter les souscriptions pour le Fonds d’infrastructures sera
prise en fonction des possibilités de placement pour le Fonds d’infrastructures,
des engagements d’apport de capital de tout Fonds sous-jacent (y compris les
Fonds Fiera Axium), et des autres facteurs que le gestionnaire peut déterminer à
son seul gré.
Si le gestionnaire décide d’accepter des souscriptions pour le Fonds
d’infrastructures (le « moment du transfert »), celui-ci rachètera, pour le
compte de chaque investisseur admissible à souscrire des parts du Fonds
d’infrastructures, des parts de catégorie IA et des parts de catégorie IF du Fonds
du marché monétaire détenues par cet investisseur et affectera le produit de ce
rachat, après déduction des frais initiaux (tels qu’ils sont décrits ci-après), à la
souscription de parts de la série équivalente du Fonds d’infrastructures.
La priorité de souscription des parts du Fonds d’infrastructures sera donnée aux
investisseurs en fonction de la date à laquelle ils ont investi dans le Fond du
marché monétaire; les investisseurs qui ont investi le même jour seront traités au
prorata avec les autres investisseurs qui ont également investi le même jour.
Le gestionnaire doit recevoir du courtier de l’investisseur les demandes de
souscription pour les placements initiaux ou les demandes de placement
supplémentaires par l’entremise du réseau FundSERV avant 16 h (heure de
l’Est) le jour ouvrable précédant le jour d’évaluation applicable. Toutes les
souscriptions de parts de catégorie IA et de catégorie IF du Fonds du marché
monétaire doivent être effectuées par un placeur sur le réseau FundSERV. Le
gestionnaire n’acceptera aucune souscription directe. Les parts du Fonds du
marché monétaire ne peuvent être achetées qu’en dollars canadiens.
Les parts sont offertes uniquement aux investisseurs résidant dans une province
du Canada (les « territoires du placement ») admissibles à une dispense des
exigences de prospectus applicables prévues dans la législation sur les valeurs
mobilières de chaque territoire du placement et admissibles à la souscription de
parts du Fonds du marché monétaire et du Fonds d’infrastructures. Le
gestionnaire se réserve le droit d’accepter ou de refuser des ordres, de modifier
le montant minimal des placements dans une série du Fonds d’infrastructures, de
permettre des distributions au comptant à tous les investisseurs et de mettre fin
au placement de parts d’une catégorie du Fonds d’infrastructures en tout temps
et à l’occasion.
Au moment du transfert, un investisseur qui n’est pas admissible à souscrire des
parts du Fonds d’infrastructures se fera racheter ses parts du Fonds du marché
monétaire.
Veuillez vous reporter à l’offre de souscription du marché monétaire annexée à
la présente notice d’offre, pour de plus amples renseignements sur la
souscription de parts du Fonds du marché monétaire.
Veuillez vous reporter aux rubriques « Le Fonds d’infrastructures » et
« Placement dans le Fonds d’infrastructures ».
Rachats
Renseignements au sujet des parts de catégorie IA et de catégorie IF du Fonds
du marché monétaire
Le Fonds du marché monétaire offre un droit limité de rachat aux porteurs de
parts de catégorie IA et de catégorie IF dont les parts n’ont pas été transférées
dans le Fonds d’infrastructures dans les deux ans de leur souscription. Ces
rachats seront uniquement honorés dans la mesure où le gestionnaire estime, à
son seul gré, que ces rachats ne compromettront d’aucune façon la capacité du
Fonds d’infrastructures d’honorer ses engagements de capitaux envers les Fonds
sous-jacents (y compris les Fonds Fiera Axium).
En plus ce qui précède, le gestionnaire peut, à l’occasion, à son gré, offrir un
droit limité de rachat aux porteurs de parts selon les conditions établies, à
l’occasion, par le gestionnaire.
La convention de fiducie du Fonds du marché monétaire prévoit que le
gestionnaire peut, à son seul gré, forcer le rachat des parts de catégorie IA et de
catégorie IF. Ces parts seraient rachetées à la valeur liquidative par part de la
catégorie.
Renseignements au sujet des parts de série A et de série F du Fonds
d’infrastructures
Les parts du Fonds d’infrastructures peuvent être remises au gestionnaire en vue
de leur rachat sur présentation d’une demande de rachat sur le réseau
FundSERV avant l’heure d’évaluation (au sens donné à cette expression
ci-après) 60 jours avant le jour d’évaluation visé (au sens donné à cette
expression ci-après) au cours duquel le détenteur demande le rachat de ces parts
(la « date de rachat »).
Ces demandes de rachat sont honorées par le Fonds d’infrastructures dans la
mesure uniquement où, de l’avis du gestionnaire, le Fonds d’infrastructures
possède suffisamment de liquidités pour régler ses dettes et où le rachat n’aura
pas d’incidence défavorable importante sur les porteurs de parts restants du
Fonds d’infrastructures.
Le rachat de parts du Fonds d’infrastructures peut faire l’objet d’un escompte de
rachat (tel qu’il est décrit ci-après).
Le gestionnaire déploie des efforts commercialement raisonnables pour faire en
sorte que le Fonds d’infrastructures obtienne les liquidités nécessaires pour
honorer les demandes de rachat. Pour ce faire, le gestionnaire a mis en place une
stratégie visant à maximiser le profil de liquidité du Fonds d’infrastructures. Le
gestionnaire : (i) cherchera à conserver environ 20 % des actifs du Fonds
d’infrastructures dans le portefeuille de liquidités; (ii) déploiera des efforts
commercialement raisonnables pour assortir les investisseurs qui cherchent à
faire racheter leurs parts du Fonds d’infrastructures à des investisseurs qui
détiennent alors des parts du Fonds du marché monétaire et qui cherchent à
souscrire des parts du Fonds d’infrastructures; (iii) cherchera à affecter une
partie du rendement de placement du Fonds d’infrastructures (y compris les
rendements découlant de la disposition d’actifs des Fonds sous-jacents) aux
demandes de rachat; et (iv) envisagera la possibilité de faire racheter ou de
vendre la participation du Fonds d’infrastructures dans les Fonds sous-jacents
(pourvu qu’un tel rachat n’ait pas d’incidence défavorable importante sur les
porteurs de parts restants du Fonds d’infrastructures).
Veuillez vous reporter à la rubrique « Rachat de parts ».
Escompte au rachat
La valeur liquidative par part de la série (au sens donné à cette expression ciaprès) des parts du Fonds d’infrastructures rachetées avant la cinquième date
d’anniversaire de la souscription par le porteur de parts du Fonds du marché
monétaire (la « date de souscription initiale ») est assujettie à l’escompte
applicable à leur valeur liquidative par part de la série établi à la date de rachat
visée :

la valeur liquidative par part de la série des parts rachetées dans la première
année suivant la date de souscription initiale fera l’objet d’un escompte de
5 %;

la valeur liquidative par part de la série des parts rachetées après la première
année, mais avant la fin de la deuxième année suivant la date de souscription
initiale fera l’objet d’un escompte de 4 %;

la valeur liquidative par part de la série des parts rachetées après la
deuxième année, mais avant la fin de la troisième année suivant la date de
souscription initiale fera l’objet d’un escompte de 3 %;

la valeur liquidative par part de la série des parts rachetées après la troisième
année, mais avant la fin de la quatrième année suivant la date de
souscription initiale fera l’objet d’un escompte de 2 %;

la valeur liquidative par part de la série des parts rachetées après la
quatrième année, mais avant la fin de la cinquième année suivant la date de
souscription initiale fera l’objet d’un escompte de 1 %;

la valeur liquidative par part de la série des parts rachetées après la
cinquième année suivant la date de souscription initiale ne fera pas l’objet
d’un escompte.
Veuillez vous reporter à la rubrique « Rachat de parts ».
Transfert de parts
Aucun transfert de parts du Fonds d’infrastructures ne peut être effectué
autrement que par l’effet de la loi ou du consentement du gestionnaire. Les parts
peuvent également être soumises à certaines restrictions quant à leur revente aux
termes des lois sur les valeurs mobilières applicables. Veuillez vous reporter à la
rubrique « Transfert de parts ».
Frais
Le Fonds d’infrastructures acquittera les frais habituels et ordinaires relatifs à
son exploitation, y compris les frais administratifs, la rémunération et les frais de
l’agent chargé de la tenue des registres et agent des transferts, les honoraires du
fiduciaire (le cas échéant) et du dépositaire, les honoraires et frais d’audit, de
comptabilité et ceux des conseillers juridiques, les frais de communication,
d’impression et d’envoi par la poste, l’ensemble des frais associés à la vente ou
au rachat de parts, y compris les droits de dépôt (le cas échéant) et les frais de
service des courtiers (sauf les commissions de service des courtiers dont il est
question ci-après, qui sont à la charge du gestionnaire), les frais se rapportant à
la remise de rapports financiers et autres aux porteurs de parts et à la
convocation et à la tenue d’assemblées des porteurs de parts, l’ensemble des
impôts et des taxes, des cotisations ou autres charges imposées par le
gouvernement au Fonds d’infrastructures, les intérêts débiteurs ainsi que
l’ensemble des courtages et autres frais concernant l’achat et la vente des actifs
du Fonds d’infrastructures.
Le gestionnaire a convenu de payer les frais qui sont engagés par le Fonds
d’infrastructures relativement à la prise d’engagements de capitaux par le Fonds
d’infrastructures dans un Fonds sous-jacent (les « frais initiaux du Fonds sous-
jacent »), y compris la contribution pour le partage des coûts de l’organisation
et tous les frais d’engagement imputés en fonction du capital engagé mais non
encore investi. Par exemple, dans le cas d’un engagement de capitaux effectué
dans l’un des Fonds Axium Fiera, le gestionnaire assumera la contribution pour
le partage des coûts de l’organisation de 0,3 % de l’engagement de capitaux et
de 0,75 % des frais d’engagement annuel sur le capital engagé mais non encore
investi par le Fonds d’infrastructures.
Veuillez vous reporter à la rubrique « Rémunération et frais».
Frais de gestion
En contrepartie des services qu’il rend au Fonds d’infrastructures, le
gestionnaire recevra des frais de gestion mensuels (les « frais de gestion ») du
Fonds d’infrastructures. Les frais de gestion sont, dans le cas de chaque série,
des frais de la série attribuables à la série en question.
Des frais de gestion correspondant à un douzième des pourcentages suivants par
mois de la valeur liquidative de la série visée du Fonds d’infrastructures,
calculés, accumulés et payables mensuellement, sont imposés aux parts du
Fonds d’infrastructures :
Série A
1,5 %
Série F
0,75 %
Les frais de gestion perçus par le gestionnaire s’ajoutent aux autres frais payés
indirectement par le Fonds d’infrastructures en raison de sa détention des autres
Fonds sous-jacents. Par exemple, le Fonds d’infrastructures pourrait devoir
payer à Fiera Axium, de façon indirecte en raison de son placement dans les
Fonds Fiera Axium, des frais de gestion annuels pouvant atteindre 1,25 % ainsi
que certaines primes incitatives (tel qu’il est décrit en détail dans la notice
d’offre confidentielle jointe à la présente notice d’offre à l’Annexe B).
Par conséquent, aucun rajustement ne sera apporté aux frais de gestion afin de
tenir compte des frais payés par les Fonds Fiera Axium à Fiera Axium. Le
gestionnaire touche également des frais de gestion du Fonds du marché
monétaire, tels qu’ils sont décrits plus précisément dans l’offre de souscription
du marché monétaire.
Le gestionnaire peut, à l’occasion, à son seul gré, renoncer à la totalité ou à une
partie des frais de gestion qui lui sont payables par le Fonds d’infrastructures
et (ou) le Fonds du marché monétaire.
Les frais de gestion sont assujettis aux taxes applicables, dont la TVQ et la TPS
ou la TVH.
Pour obtenir des renseignements sur les frais de gestion payés au gestionnaire
par le Fonds du marché monétaire, veuillez vous reporter à l’offre de
souscription du marché monétaire, laquelle est jointe aux présentes à
l’Annexe A.
Frais d’entrée du Fonds
d’infrastructures
En contrepartie du paiement par le gestionnaire des frais initiaux du Fonds sousjacent, chaque investisseur souscrivant des parts du Fonds d’infrastructures
acquittera des frais d’entrée unique de 0,75 % (les « frais d’entrée ») sur la
valeur des parts du Fonds du marché monétaire qui sont rachetées à des fins de
souscription dans le Fonds d’infrastructures.
Le gestionnaire peut, à l’occasion, à son seul gré, renoncer à la totalité ou à une
partie des frais d’entrée qui lui sont payables par un investisseur souscrivant des
parts du Fonds d’infrastructures.
Les frais d’entrée sont assujettis aux taxes applicables, dont la TVQ et la TPS ou
la TVH.
Rémunération des
courtiers
Les courtiers inscrits (les « courtiers ») qui placent les parts du Fonds du
marché monétaire en vue d’un placement dans le Fonds d’infrastructures
peuvent recevoir un courtage pouvant aller jusqu’à 5 %, qui sera déduit de
l’ordre de souscription et versé par l’investisseur au courtier. Le courtage peut
être négocié entre le courtier et l’investisseur.
Le gestionnaire versera aux courtiers des commissions de service en contrepartie
des conseils et des services permanents fournis à l’égard des parts de série A du
Fonds d’infrastructures et des parts de catégorie IA du Fonds du marché
monétaire.
Les commissions de service sont accumulées chaque jour d’évaluation et sont
versées tous les trimestres au taux annuel actuel de 0,75 % de la valeur
liquidative de la série des parts de la série A détenues par les clients du courtier.
Veuillez vous reporter à la rubrique « Rémunération des courtiers ».
Pour obtenir des renseignements sur les commissions de service payables aux
courtiers à l’égard des parts de catégorie IA du Fonds du marché monétaire,
veuillez vous reporter à l’offre de souscription du marché monétaire, laquelle est
jointe aux présentes à l’Annexe A.
Conflits d’intérêts
Tel qu’il est divulgué dans la politique de placement, le gestionnaire compte
investir, directement ou indirectement, une part importante des actifs du Fonds
d’infrastructures dans l’un ou l’autre des Fonds Fiera Axium, qui sont tous des
fonds privés d’infrastructures gérés par Fiera Axium. Fiera détient à l’heure
actuelle une partie importante (35 %) des actions de Fiera Axium, et Jean-Guy
Desjardins (président du conseil et chef de la direction du gestionnaire), Sylvain
Brosseau (président et chef de l’exploitation du gestionnaire) ainsi que Lise
Pistono (membre du conseil d’administration du gestionnaire) sont membres du
conseil d’administration de Fiera Axium. Jean-Guy Desjardins est également
membre du comité d’investissement de Fiera Axium.
Les frais de gestion perçus par le gestionnaire s’ajoutent à tous frais versés
indirectement par le Fonds d’infrastructures à Fiera Axium en raison de sa
détention des Fonds Fiera Axium. Aucun rajustement ne sera apporté aux frais
de gestion pour tenir compte des frais versés par les Fonds Fiera Axium à Fiera
Axium.
Fiera Axium et le gestionnaire ont conclu une entente d’arrangement sur les frais
(la « convention d’arrangement sur les frais ») aux termes de laquelle Fiera
Axium versera au gestionnaire une rémunération pour les clients qu’il lui réfère,
y compris des fonds d’investissement gérés par le gestionnaire. Aux termes de la
convention d’arrangement sur les frais, Fiera Axium versera au gestionnaire une
rémunération correspondant au plus à 0,35 % du total des placements effectués
dans les Fonds Fiera Axium par un fonds d’investissement géré par le
gestionnaire.
Le Fonds d’infrastructures peut également investir dans d’autres fonds gérés par
le gestionnaire ou les membres de son groupe, y compris le Fonds Fiera
d’infrastructures, le Fonds Fiera court terme « Core », le Fonds Fiera de
placement à court terme, le Fonds Fiera court terme Plus, le Fonds Fiera de
gestion active d’encaisse et le Fonds Fiera de gestion d’encaisse. Aucuns autres
frais de gestion ne seront versés par le Fonds d’infrastructures au gestionnaire à
l’égard des placements effectués par le Fonds d’infrastructures dans ces fonds.
Pour obtenir plus de renseignements, veuillez vous reporter à la rubrique
« Gestion du Fonds d’infrastructures – Conflits d’intérêts ».
Distributions
Le Fonds d’infrastructures compte distribuer un montant suffisant de revenu net
et de gains en capital réalisés nets, s’il y a lieu, aux porteurs de parts au cours de
chaque année civile pour s’assurer de ne pas être assujetti à l’impôt sur le revenu
aux termes de la Partie I de la Loi de l’impôt sur le revenu (Canada) (la « Loi de
l’impôt »), après avoir tenu compte de tous les reports de perte prospectifs. Le
Fonds d’infrastructures peut également, à l’occasion lorsque le gestionnaire
l’estime approprié, effectuer des remboursements de capital aux porteurs de
parts.
Toutes les distributions (sauf les distributions sur les frais décrits à la rubrique
« Rémunération et frais ») seront versées en proportion de chaque série à chaque
porteur de parts inscrit à la fermeture des bureaux le jour d’évaluation
applicable.
Le Fonds d’infrastructures versera des distributions, le cas échéant,
trimestriellement, le dernier jour d’évaluation de chaque trimestre civil, et aux
autres dates que le gestionnaire estime convenables.
Bien que le gestionnaire s’attende à ce que les distributions aux porteurs de parts
soient généralement versées au comptant, le gestionnaire pourra, à son gré,
utiliser une partie ou la totalité des rendements de placement du Fonds
d’infrastructures pour honorer des demandes de rachat, renflouer le portefeuille
de liquidités et effectuer de nouveaux placements ou des placements de suivi.
Dans un tel cas, les distributions seront investies dans des parts du Fonds
d’infrastructures. Veuillez vous reporter à la rubrique « Distributions ».
Évaluation
La valeur liquidative du Fonds d’infrastructures (la « valeur liquidative »)
correspond à la valeur de l’actif du Fonds d’infrastructures, après déduction de
ses passifs, calculée à une date donnée conformément à la convention de fiducie.
Le gestionnaire calculera la valeur liquidative du Fonds d’infrastructures le
dernier jour ouvrable (un jour où la Bourse de Toronto (« Bourse de Toronto »)
est ouverte, est appelé ci-après un « jour ouvrable ») de chaque mois, le
31 décembre de chaque année et au moment du transfert (chacun étant un « jour
d’évaluation »), à la clôture de la séance de négociation à la Bourse de Toronto,
qui est habituellement à 16 h (heure de l’Est) (l’« heure d’évaluation »).
Le gestionnaire calculera également, à l’heure d’évaluation chaque jour
d’évaluation, la valeur liquidative du Fonds d’infrastructures attribuable à
chaque série de parts du Fonds d’infrastructures (la « valeur liquidative de la
série ») et la valeur liquidative par part pour chaque série de parts du Fonds
d’infrastructures (la « valeur liquidative par part de la série »), tel qu’il est
prévu dans la convention de fiducie et les présentes. Veuillez vous reporter à la
rubrique « Détermination de la valeur liquidative ».
Conséquences fiscales
Les investisseurs éventuels devraient évaluer avec soin l’ensemble des
conséquences fiscales éventuelles d’un placement dans le Fonds
d’infrastructures (y compris le placement conséquent dans le Fonds du marché
monétaire) et devraient consulter leur conseiller en fiscalité avant de souscrire
des parts. Pour obtenir un exposé de certaines conséquences fiscales d’un tel
placement, veuillez vous reporter à la rubrique « Incidences fiscales fédérales
canadiennes ».
Admissibilité aux fins de
placement
Puisque le Fonds d’infrastructures n’est ni une fiducie de fonds commun de
placement ni un placement enregistré aux fins de la Loi de l’impôt, les parts du
Fonds d’infrastructures ne sont pas des placements admissibles pour les fiducies
régies par des régimes enregistrés d’épargne-retraite, des fonds enregistrés de
revenu de retraite, des régimes de participation différée aux bénéfices, des
régimes enregistrés d’épargne-invalidité, des régimes enregistrés d’épargneétudes et des comptes d’épargne libre d’impôt, au sens de la Loi de l’impôt, et
ne devraient être détenues dans de tels régimes.
Facteurs de risque
Le Fonds d’infrastructures est soumis à divers facteurs de risque. Veuillez vous
reporter à la rubrique « Facteurs de risque ».
Exercice
L’exercice du Fonds d’infrastructures prendra fin le 31 décembre de chaque
année.
Rapports
Les porteurs de parts recevront des états financiers annuels audités dans un délai
de 90 jours de la fin de l’exercice et des états financiers semestriels non audités
dans les 60 jours suivant le 30 juin ou comme la loi le prescrit par ailleurs. Les
rapports intermédiaires supplémentaires aux porteurs de parts seront à
l’appréciation du gestionnaire. Le Fonds d’infrastructures peut conclure d’autres
ententes avec des porteurs de parts qui peuvent donner le droit à ceux-ci de
recevoir d’autres rapports. Les porteurs de parts recevront tous les formulaires
fiscaux requis dans le délai prescrit par la loi applicable pour les aider à faire les
déclarations de revenus nécessaires.
Le gestionnaire a convenu de préserver la confidentialité de certains des
renseignements reçus par Fiera Axium relatifs aux Fonds Fiera Axium, y
compris l’information qu’il peut recevoir au sujet de la valeur liquidative de tout
Fonds Fiera Axium et l’information au sujet des actifs détenus par les Fonds
Fiera Axium. Par conséquent, le gestionnaire ne peut fournir ces renseignements
aux porteurs de parts. De plus, les porteurs de parts n’auront pas le droit
d’obtenir ces renseignements auprès du gestionnaire, de Fiera Axium, de l’un ou
l’autre des Fonds Fiera Axium, ou auprès du Fonds du marché monétaire ou du
Fonds d’infrastructures.
LE FONDS D’INFRASTRUCTURES
Le fonds d’investissement offert aux présentes est le FONDS FIERA D’INFRASTRUCTURE PRIVÉ (le « Fonds
d’infrastructures »).
Le Fonds d’infrastructures est une fiducie créée le 28 février 2014 sous le régime des lois du Québec aux termes
d’une convention de fiducie modifiée et mise à jour, datée du 28 février 2014, dans sa version modifiée, mise à
jour ou complétée à l’occasion (la « convention de fiducie »). TRUST BANQUE NATIONALE INC.
(le « fiduciaire ») est le fiduciaire du Fonds d’infrastructures, et CORPORATION FIERA CAPITAL (« Fiera » ou le
« gestionnaire ») est le gestionnaire du Fonds d’infrastructures aux termes de la convention de fiducie.
Le bureau du Fonds d’infrastructures est situé au bureau du gestionnaire à Montréal, soit au 1501, avenue
McGill College, bureau 800, Montréal (Québec) H3A 3M8.
La description des dispositions de la convention de fiducie figurant aux présentes doit être lue à la lumière de la
convention de fiducie.
Les placements dans le Fonds d’infrastructures sont représentés par des parts de fiducie d’une série du Fonds
d’infrastructures (les « parts »). Le Fonds d’infrastructures est autorisé à posséder un nombre illimité de séries
de parts (chacune une « série »), émises en un nombre illimité de sous-séries (les « sous-séries »), dont le
gestionnaire peut établir les modalités. Chaque part d’une série ou d’une sous-série représente une participation
véritable indivise dans les actifs nets du Fonds d’infrastructures attribuables à cette série de parts. Le nombre de
parts de chaque série et de chaque sous-série est illimité.
Le Fonds d’infrastructures comporte actuellement les deux séries de parts suivantes :

Parts de série A : cette série de parts est émise au moyen du produit de rachat provenant du rachat des
parts de catégorie IA du Fonds du marché monétaire (tel qu’il est décrit ci-après). Les parts de série A
sont conçues pour les investisseurs qui ne sont pas admissibles à l’acquisition des parts de série F.

Parts de série F : cette série de parts est émise au moyen du produit de rachat provenant du rachat des
parts de catégorie IF du Fonds du marché monétaire (tel qu’il est décrit ci-dessous). Les parts de série F
sont conçues pour les investisseurs qui ont adhéré à un programme de services assortis de frais ou à un
programme intégré parrainé par un courtier et qui doivent payer des frais annuels en fonction des actifs
gérés plutôt que des commissions sur chaque opération ou, à l’appréciation du gestionnaire, pour tout
autre investisseur pour lequel le gestionnaire n’engage aucuns frais de placement.
Des séries de parts supplémentaires peuvent être offertes à l’avenir sans que les porteurs de parts existants
(les « porteurs de parts ») en soient avisés et sans que leur approbation soit obtenue.
POLITIQUE DE PLACEMENT
Objectif de placement fondamental
L’objectif de placement fondamental du Fonds d’infrastructures consiste à dégager des rendements intéressants
qui sont rajustés en fonction du risque au moyen de placements dans des actifs d’infrastructure situés au Canada
et aux États-Unis.
Stratégie de placement
Pour atteindre son objectif de placement fondamental, le Fonds d’infrastructures cherchera à composer un
portefeuille diversifié d’actifs d’infrastructure directement, au moyen de l’acquisition de capitaux propres, de
quasi-capitaux propres, de dettes subordonnées et convertibles et d’autres placements connexes à des capitaux
propres dans des actifs d’infrastructure au Canada et (ou) aux États-Unis, et (ou) indirectement, au moyen de
placements dans des structures d’accueil ou des fonds de placement qui se concentrent sur l’investissement dans
des actifs d’infrastructure au Canada et (ou) aux États-Unis (chacun d’eux étant un « Fonds sous-jacent »).
Le gestionnaire prévoit investir une partie importante des actifs du Fonds d’infrastructures, directement ou
indirectement, dans l’une ou l’autre de : Société en commandite Fiera Axium Infrastructure Amérique du Nord,
Société en commandite Fiera Axium Infrastructure Canada II et (ou) Fiera Axium Infrastructure US Limited
Partnership (les « Fonds Fiera Axium »). Les Fonds Fiera Axium sont gérés par Fiera Axium Infrastructure
Inc. et par sa filiale en propriété exclusive, Fiera Axium US Inc. (collectivement, « Fiera Axium »). Fiera est
propriétaire actuellement d’une partie importante (35 %) des actions de Fiera Axium. Pour de plus amples
renseignements sur Fiera Axium et les Fonds Fiera Axium, veuillez vous reporter à la notice d’information
confidentielle jointe à la présente notice d’offre uniquement à des fins de renseignements à l’Annexe B. Les
investisseurs dans les parts du Fonds d’infrastructures n’auront aucun droit aux termes de la notice
d’information confidentielle des Fonds Fiera Axium. Voir également « Gestion du Fonds d’infrastructures –
Conflits d’intérêts ».
Le Fonds d’infrastructures peut également rechercher une exposition directe ou indirecte (au moyen
d’instruments dérivés, notamment des contrats à terme) à d’autres entités à vocation précise ou fonds
d’investissement, lesquels peuvent inclure d’autres fonds d’investissement gérés par le gestionnaire ou les
membres de son groupe.
Afin d’accroître la liquidité du Fonds d’infrastructures, le gestionnaire veillera à conserver environ 20 % des
actifs du Fonds d’infrastructures dans un portefeuille liquide composé d’instruments du marché monétaire et de
titres à revenu fixe (le « portefeuille de liquidités »).
Objectif de rendement
Le gestionnaire cherche à dégager un rendement total d’entre 8 % et 10 % l’an pendant des périodes mobiles de
cinq ans.
Placements autorisés
Seuls les placements énoncés ci-après sont autorisés, conformément aux limites fixées pour chaque catégorie
d’actif. À moins d’indication contraire, toutes les limites fixées sont établies selon la valeur marchande.
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Liquidités et titres du marché monétaire

Titres autorisés : les liquidités, les dépôts à vue, les bons du Trésor, les billets à court terme, les
obligations, les acceptations bancaires, les effets publics, les dépôts à terme, les certificats de placement
garantis ou autres instruments financiers émis par des banques, des compagnies d’assurance, des
sociétés de fiducie ou des caisses d’épargne, le papier commercial, les coupons détachés et les
obligations à coupons détachés ainsi que les titres à taux variable (rajusté au moins deux fois par année).

La durée à l’échéance moyenne des titres à court terme ne peut pas dépasser un an.

Tous les titres de sociétés doivent avoir obtenu une note de crédit minimale de R1-faible ou l’équivalent
par DBRS ou une autre agence de notation.

Le montant maximal investi dans une société émettrice, à l’exception des reçus de dépôt venant à
échéance 15 jours suivant l’achat, ne doit pas excéder 10 % de la valeur marchande des titres à court
terme si sa note de crédit est R1-moyen ou plus élevée, et 5 % autrement.
Titres à revenu fixe
Titres autorisés : les obligations (non convertibles), les coupons détachés et les résidus d’obligations garantis ou
soutenus par le gouvernement du Canada, une province ou une municipalité, les débentures ou les obligations de
sociétés canadiennes, les titres adossés à des actifs, les titres adossés à des hypothèques, les prêts hypothécaires,
les dépôts à terme, les certificats de placement garantis et les contrats honorés par des compagnies d’assurance.
Des prêts indirects consentis au moyen de véhicules de placement qui fournissent du financement de relais à des
entrepreneurs généraux du secteur de la construction résidentielle, ainsi que d’autres produits comme des
fiducies de placement à capital variable ou fixe non constituées en personne morale.
Infrastructures
Le Fonds d’infrastructures est autorisé à investir dans des structures d’accueil ou des fonds de placement, tels
que les sociétés en commandite, qui se concentrent sur le placement dans des actifs d’infrastructure au Canada
et (ou) aux États-Unis. Le Fonds d’infrastructures est également autorisé à investir directement dans des actifs
d’infrastructure au moyen de l’acquisition de capitaux propres, de titres de créances assimilables à des titres de
capitaux propres, de dettes subordonnées et convertibles et de placements connexes à des capitaux propres dans
des actifs d’infrastructure.
Couverture de change
Le Fonds d’infrastructures peut recourir aux instruments dérivés, y compris les contrats à terme standardisés ou
contrats à terme de gré à gré, à des fins de couverture de change.
Fonds communs de placement et fonds mis en commun
Le Fonds d’infrastructures peut investir dans des titres des véhicules d’investissement en gestion commune tels
que, notamment, les fonds communs de placement, les fonds mis en commun (à capital variable ou à capital
fixe), les structures d’accueil, les sociétés en commandite ou les fiducies de placement. Plus précisément, le
Fonds d’infrastructures peut investir dans le Fonds Fiera d’infrastructures, le Fonds Fiera court terme « Core »,
le Fonds Fiera de placement court terme, le Fonds Fiera court terme Plus, le Fonds Fiera de gestion active
d’encaisse et le Fonds Fiera de gestion d’encaisse.
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Le Fonds d’infrastructures n’investira dans des véhicules d’investissement en gestion commune que lorsque ceci
est conforme à son objectif et à sa stratégie de placement énoncés ci-dessus et à la présente politique de
placement. Lorsqu’une décision est prise d’investir des actifs du Fonds d’infrastructures dans des véhicules
d’investissement en gestion commune, le gestionnaire choisira les véhicules d’investissement en gestion
commune en fonction de différents critères, notamment leur convenance pour le Fonds d’infrastructures, le style
de gestion, le rendement des placements, le risque et la volatilité.
À moins de mention contraire dans la notice d’offre, le Fonds d’infrastructures n’investira pas dans un fonds
géré par le gestionnaire ou l’un des membres de son groupe, sauf s’il a pris les mesures appropriées pour
s’assurer qu’aucuns frais de gestion ne seront versés au gestionnaire ou à l’un des membres de son groupe
relativement au placement du Fonds d’infrastructures dans un tel fonds.
Gestion des risques – Portefeuille de liquidités
En ce qui concerne le portefeuille de liquidités, le risque lié à la liquidité sera géré par la mesure du pourcentage
des titres qui pourraient être liquidés au cours des opérations d’un jour de bourse en fonction de la valeur
médiane des volumes d’opérations quotidiens au cours des 10 dernières semaines. Ce calcul tiendra compte de
la totalité des avoirs du portefeuille de liquidités du Fonds d’infrastructures et de tous les autres portefeuilles
gérés par le gestionnaire ayant le même mandat (c’est-à-dire, le même processus, style et gestionnaire de
portefeuille). Au moins 60 % des actifs liés au portefeuille de liquidités d’après la valeur en dollars doivent
pouvoir être liquidés au cours des opérations d’un jour de bourse en fonction d’une valeur de 100 % de la
médiane du volume d’opérations de négociation.
Restrictions en matière de placement
Les activités de placement du Fonds d’infrastructures seront effectuées conformément à certaines restrictions,
lesquelles comprennent les suivantes :
Activité unique
Le Fonds d’infrastructures n’exercera aucune autre activité que le placement des actifs du Fonds
d’infrastructures conformément à l’objectif et aux stratégies de placement du Fonds d’infrastructures.
Ventes à découvert et achats sur marge
Le Fonds d’infrastructures n’achètera pas des titres sur marge ni d’effectuera de ventes de titres à découvert.
GESTION DU FONDS D’INFRASTRUCTURES
Le gestionnaire
Fiera est le gestionnaire du Fonds d’infrastructures et est responsable de ses activités quotidiennes depuis sa
création le 28 février 2014, y compris en ce qui concerne la gestion de son portefeuille de placement. Le siège
social du gestionnaire est situé au 1501, avenue McGill College, bureau 800, Montréal (Québec) H3A 3M8, et
son bureau principal est situé au 1 Adelaide Street East, Suite 600, Toronto (Ontario) M5C 2V9.
Le gestionnaire est inscrit comme gestionnaire de portefeuille et courtier sur le marché dispensé dans toutes les
provinces et tous les territoires du Canada. Fiera est également inscrite comme gestionnaire de fonds
d’investissement dans les provinces d’Ontario et du Québec. De plus, le gestionnaire est inscrit au Québec
comme gestionnaire de portefeuille d’instruments dérivés en vertu de la Loi sur les instruments dérivés
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(Québec), et en Ontario et au Manitoba comme gestionnaire d’opérations sur marchandises en vertu de la Loi
sur les contrats à terme sur marchandises (Ontario) et de la Loi sur les contrats à terme de marchandises
(Manitoba). Le gestionnaire est l’entreprise combinée qui a résulté de la fusion de Fiera Capital Inc. et de
Sceptre Investment Counsel Limited, chacune ayant été créée respectivement en 2003 et 1955. Avec prise
d’effet le 2 avril 2012, le gestionnaire a acquis les activités de Gestion de portefeuille Natcan inc. (« Natcan »)
et a changé sa dénomination pour Corporation Fiera Capital. Par suite de cette opération, Banque Nationale du
Canada, par l’entremise de Natcan, détient environ 35 % des actions en circulation du gestionnaire et, en date de
la notice d’offre, une option permettant d’acquérir des actions supplémentaires. Si cette option est exercée
intégralement, cette participation passerait à au plus 37,5 % des actions en circulation du gestionnaire. Fiera est
un gestionnaire financier indépendant inscrit en bourse et doté d’un actif sous gestion d’environ 67 G$
en novembre 2013. Fiera offre des solutions de placement de styles multiples par l’intermédiaire de stratégies de
placement diversifiées aux investisseurs institutionnels, aux clients détenteurs de patrimoine et aux épargnants.
Conformément à la convention de fiducie, le gestionnaire dispose de tous les pouvoirs d’administration requis
pour gérer le Fonds d’infrastructures dans le but de réaliser un profit au moyen de placements conformément
aux objectifs de placement, et fournir au Fonds d’infrastructures tous les services de bureau, services
administratifs et services d’exploitation nécessaires, avec pleins pouvoirs de sous-délégation de ces pouvoirs
d’administration. Le gestionnaire est tenu d’exercer les pouvoirs et de s’acquitter des devoirs propres à sa
charge, honnêtement, de bonne foi et dans l’intérêt véritable du Fonds d’infrastructures et de ses porteurs de
parts et, dans ce contexte, de faire preuve du degré de soin, de la diligence et de la compétence dont ferait
preuve un gestionnaire de portefeuille professionnel prudent dans des circonstances analogues.
La convention de fiducie prévoit que le gestionnaire ne saurait être tenu responsable de toute perte ou
dépréciation d’un investissement ou d’un réinvestissement conformément aux dispositions de la convention de
fiducie, ni de tout acte ou de toute omission dans le cadre de ses fonctions ou obligations aux termes de la
convention de fiducie, sauf si une telle perte ou dépréciation relative à ce qui précède résulte d’un manquement
du gestionnaire à ses normes de diligence en conséquence d’une faute lourde, d’une inconduite volontaire ou
d’une fraude du gestionnaire.
La convention de fiducie prévoit que le gestionnaire et certains membres de son groupe disposent d’un droit
d’indemnisation envers le Fonds d’infrastructures quant aux frais juridiques, aux jugements et aux montants de
règlement qui ont été réellement versés et raisonnablement engagés par eux dans le cadre des services fournis
aux termes des présentes, sauf dans les cas où (i) il y a eu une faute lourde, une inconduite volontaire ou une
fraude de la part du gestionnaire ou d’un membre de son groupe; (ii) une réclamation est présentée en raison
d’une information fausse ou trompeuse figurant dans la présente notice d’offre et les dirigeants ou les associés,
ou les deux, du gestionnaire ont accordé un droit d’action contractuel; ou (iii) le gestionnaire a omis de respecter
sa norme de soin telle qu’elle est établie dans la convention de fiducie.
Dirigeants et gestionnaires de portefeuille clés du gestionnaire
La liste de personnes suivante comprend les principaux dirigeants du gestionnaire et le gestionnaire de
portefeuille qui est principalement responsable de la gestion du portefeuille du Fonds d’infrastructures.
Jean-Guy Desjardins. M. Desjardins est président du conseil et chef de la direction de Fiera. Il est analyste
financier agréé et titulaire d’une MBA de l’École des hautes études commerciales (HEC) de l’Université de
Montréal. En 1972, M. Desjardins a cofondé TAL Gestion globale d’actifs, une société devenue l’une des plus
grandes entreprises de gestion d’actifs au Canada. Il a été président et chef de la direction de cette société de
1987 à 2001, président du conseil et chef de la direction de Gestion privée TAL de 1989 à 2001 et président du
conseil et chef de la direction de Gestion financière Talvest de 1985 à 2001. M. Desjardins a fondé Fiera Capital
Inc. (l’une des sociétés dont Fiera est issue) en 2003, où il a occupé les mêmes postes que ceux qu’il occupe
actuellement auprès de Fiera.
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Sylvain Brosseau. M. Brosseau est président et chef de l’exploitation de Fiera, postes qui lui confèrent la
responsabilité d’ensemble de la gestion quotidienne de l’entreprise. Après avoir travaillé huit ans pour les Fonds
communs de placement Talvest, d’abord comme vice-président de la technologie et de l’exploitation et plus tard
comme vice-président de la commercialisation, il est entré au service de TAL International où il était en charge
des services de placement et d’exploitation. Il a ensuite été vice-président directeur des marchés institutionnels
chez TAL Gestion globale d’actifs pendant deux ans avant d’entrer au service de Fiera Capital Inc. (l’une des
sociétés dont Fiera est issue) en 2003, où il a exercé les mêmes fonctions que celles qu’il exerce actuellement
chez le droit de vote ra Fiera. M. Brosseau est titulaire d’une maîtrise ès sciences de l’Université McGill et d’un
baccalauréat ès sciences de la University of Vermont.
Sylvain Roy. À titre de chef des placements et vice-président exécutif, stratégies alternatives, M. Roy participe
aux décisions stratégiques liées aux équipes d’investissements et assure leur suivi, leur soutien ainsi que
l’allocation adéquate des ressources. M. Roy compte 16 années d’expérience dans le domaine du placement et
s’est joint à la firme en 2004. Son expérience comprend des postes de gestionnaire de portefeuilles principal –
Stratégies quantitatives et ingénierie financière, de vice-président – Allocation globale des actifs ainsi que des
rôles d’analyste quantitatif auprès d’importantes sociétés de gestion de placements canadiennes. M. Roy a
obtenu un baccalauréat en administration des affaires (B.A.A.) de l’Université de Sherbrooke, avec une majeure
en finance. Il a par la suite obtenu une maîtrise en administration (M.Sc.) en finance de l’Université de
Sherbrooke ainsi que la désignation d’analyste financier agréé (CFA).
François Bourdon. M. Bourdon est chef des solutions de placement de Fiera. Il est responsable de la gestion des
stratégies d’obligations mondiales, du fonds Global Macro ainsi que de certaines stratégies spécialisées liées à la
répartition de l’actif et stratégies de revenu non traditionnelles. Il est également membre du comité de
Répartition de l’actif et responsable du développement des stratégies de placement de la firme. M. Bourdon
compte 18 années d’expérience dans le domaine du placement et il est à l’emploi de Fiera depuis sa création. Au
cours de sa carrière, M. Bourdon a occupé divers postes dont chef-adjoint des placements, gestionnaire de
portefeuilles en recherche quantitative, directeur des stratégies de vente et développement de produits ainsi que
consultant auprès de sociétés canadiennes de gestion de placements et d’assurance-vie de premier plan.
Fiera Axium
Fiera Axium Infrastructure Inc. est un gestionnaire de fonds d’infrastructures indépendant dédié aux
investissements en infrastructure. Créée en 2008 en tant que société par actions sous le régime des lois du
Canada, Fiera Axium est actuellement le gestionnaire de Société en commandite Fiera Axium Infrastructure
Amérique du Nord et de Société en commandite Fiera Axium Infrastructure Canada II.
Fiera Axium Infrastructure US Inc., une filiale en propriété exclusive de Fiera Axium Infrastructure Inc., a été
créée sous le régime des lois de l’État du Delaware en 2012 et agit en qualité de gestionnaire de Fiera Axium
Infrastructure US LP.
Fiera Axium est sous le contrôle conjoint du gestionnaire (qui détient 35 % des actions de Fiera Axium) et de
Gestion d’infrastructure Axium Inc.
Pour de plus amples renseignements sur Fiera Axium Infrastructure Inc. et Fiera Axium Infrastructure US Inc.,
veuillez vous reporter à la notice d’information confidentielle jointe aux présentes à l’Annexe B.
Le fiduciaire
TRUST BANQUE NATIONALE INC. est le fiduciaire du Fonds d’infrastructures aux termes de la convention de
fiducie. Le fiduciaire a les pouvoirs et les responsabilités à l’égard du Fonds d’infrastructures qui sont décrits
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dans la convention de fiducie. Le fiduciaire est tenu d’exercer ses pouvoirs et de s’acquitter de ses devoirs
découlant de sa charge honnêtement et de bonne foi et dans ce contexte, de faire preuve du degré de soin, de la
diligence et de la compétence dont ferait preuve une société de fiducie canadienne raisonnablement prudente
dans des circonstances semblables.
Aux termes de la convention de fiducie, le gestionnaire peut destituer le fiduciaire à tout moment en lui donnant
un avis d’au moins 60 jours avant la date de destitution, à condition d’avoir nommé un fiduciaire successeur. Si
aucun fiduciaire successeur n’est nommé, le Fonds d’infrastructures sera dissous conformément aux modalités
de la convention de fiducie. Le fiduciaire peut démissionner, à son entière appréciation, en donnant un préavis
écrit d’au moins 60 jours au gestionnaire et aux porteurs de parts du Fonds d’infrastructures.
La convention de fiducie prévoit que le fiduciaire ne sera pas tenu responsable d’une mesure ou d’une décision
qu’il a prise conformément à un avis, à une résolution, à une directive, à un consentement, à une attestation, à
une déclaration sous serment, à une déclaration ou à tout autre document ou texte qu’il croit véridique, qui a été
adopté ou signé par les parties intéressées ou porte le sceau de celles-ci. Sans restreindre la portée générale de ce
qui précède, le fiduciaire n’engage pas sa responsabilité en agissant conformément aux instructions du
gestionnaire.
La convention de fiducie prévoit que le fiduciaire, ses administrateurs, dirigeants et employés seront en tout
temps dégagés de toute responsabilité et indemnisés, par le Fonds d’infrastructures, à même ses biens, à l’égard
(i) de toutes les réclamations quelles qu’elles soient, y compris les coûts, dépens, charges, frais, dépenses et
dettes relatifs à celles-ci, qui leur sont présentées ou opposées relativement à tout acte, question ou chose, de
quelque nature que ce soit qui a été fait, accompli, omis ou accepté dans le cadre de l’exécution de ses
obligations de fiduciaire ou relativement à celles-ci, et (ii) de tous coûts, dépens, charges, frais, dépenses et
dettes raisonnables qu’il subit ou engage dans le cadre des activités d’un Fonds ou relativement à celles-ci; sont
toutefois exclus les réclamations, coûts, dépens, frais, charges, dépenses et dettes découlant d’une faute lourde,
d’une inconduite volontaire ou d’une fraude de la part du fiduciaire ou d’une inobservation de sa norme de soin.
Conflits d’intérêts
Les services du gestionnaire et de ses dirigeants, administrateurs et membres de son groupe ne sont pas exclusifs
au Fonds d’infrastructures. Le gestionnaire ainsi que les membres de son groupe et les personnes avec qui il a
des liens peuvent, en tout temps, se livrer à la promotion, à la gestion ou à la gestion des placements de tout
autre Fonds d’infrastructures ou fiducie et procurer des services semblables à d’autres fonds d’investissement et
d’autres clients et se livrer à d’autres activités. Les décisions de placement prises pour le Fonds d’infrastructures
ne tiendront pas compte de celles prises pour d’autres clients et des placements du gestionnaire. À l’occasion,
toutefois, le gestionnaire peut effectuer les mêmes placements pour le Fonds d’infrastructures et pour un ou
plusieurs de ses autres clients. Si le Fonds d’infrastructures et un ou plusieurs des autres clients du gestionnaire
procèdent à la vente ou à l’achat du même titre, les opérations seront effectuées d’une façon équitable. Le
gestionnaire a adopté une politique de conflit d’intérêts pour régler les conflits d’intérêts éventuels qui peuvent
découler de cette situation et pour les atténuer. La politique indique que le gestionnaire traitera de façon honnête
et juste et agira de bonne foi avec tous les clients et ne conférera aucun avantage particulier à un client sans
l’accorder à d’autres.
Tel qu’il est divulgué dans la politique de placement, le gestionnaire compte investir, directement ou
indirectement, une part importante des actifs du Fonds d’infrastructures dans l’un ou l’autre des Fonds Fiera
Axium, qui sont tous des fonds privés d’infrastructures gérés par Fiera Axium. Fiera détient à l’heure actuelle
une partie importante (35 %) des actions de Fiera Axium, et Jean-Guy Desjardins (président du conseil et chef
de la direction du gestionnaire), Sylvain Brosseau (président et chef de l’exploitation du gestionnaire) et Lise
Pistono (membre du conseil d’administration du gestionnaire) sont membres du conseil d’administration de
Fiera Axium. Jean-Guy Desjardins est également membre du comité d’investissement de Fiera Axium.
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Les frais de gestion perçus par le gestionnaire s’ajoutent à tous frais versés indirectement par le Fonds
d’infrastructures à Fiera Axium en raison de sa détention des Fonds Fiera Axium. Par exemple, le Fonds
d’infrastructures pourrait devoir payer à Fiera Axium, de façon indirecte en raison de son placement dans les
Fonds Fiera Axium, des frais de gestion annuels pouvant atteindre 1,25 % ainsi que certaines primes incitatives
(tel qu’il est décrit en détail dans la notice d’offre confidentielle jointe à la présente notice d’offre à l’Annexe
B).
Aucun rajustement ne sera apporté aux frais de gestion pour tenir compte des frais versés par les Fonds Fiera
Axium à Fiera Axium.
Fiera Axium et le gestionnaire ont conclu une entente d’arrangement sur les frais (la « convention
d’arrangement sur les frais ») aux termes de laquelle Fiera Axium versera au gestionnaire une rémunération
pour les clients qu’il lui réfère, y compris des fonds d’investissement gérés par le gestionnaire. Aux termes de la
convention d’arrangement sur les frais, Fiera Axium versera au gestionnaire une rémunération correspondant au
plus à 0,35 % du total des placements effectués dans les Fonds Fiera Axium par un fonds d’investissement géré
par le gestionnaire.
Le Fonds d’infrastructures peut également investir dans d’autres fonds gérés par le gestionnaire ou les membres
de son groupe, y compris le Fonds Fiera d’infrastructures, le Fonds Fiera court terme « Core », le Fonds Fiera de
placement à court terme, le Fonds Fiera court terme Plus, le Fonds Fiera de gestion active d’encaisse et le Fonds
Fiera de gestion d’encaisse. Aucuns autres frais de gestion ne seront versés par le Fonds d’infrastructures au
gestionnaire à l’égard des placements effectués par le Fonds d’infrastructures dans ces fonds.
Les lois canadiennes sur les valeurs mobilières applicables obligent les courtiers et les conseillers inscrits,
lorsqu’ils négocient des titres d’un émetteur ou donnent des conseils au sujet d’un émetteur dont une personne
responsable ou une personne ayant des liens avec elle est associé, dirigeant ou administrateur, à aviser leurs
clients de leur relation avec une telle personne et à obtenir leur consentement écrit avant d’effectuer un achat
pour eux. De plus, les lois canadiennes sur les valeurs mobilières applicables prévoient que les sociétés inscrites
avisent leurs clients de tout conflit d’intérêts existant ou potentiel important lorsqu’un investisseur raisonnable
s’attendrait à être informé de celui-ci. Tous les renseignements pertinents à ces questions figurent dans le
document rédigé par le gestionnaire intitulé Divulgation en matière de conflits d’intérêts (la « divulgation en
matière de conflits »), dont une copie est fournie aux porteurs de parts dans la demande de souscription. En
effectuant un placement dans les parts du Fonds d’infrastructures (y compris le placement conséquent dans le
Fonds Fiera court terme Plus) les investisseurs autorisent le gestionnaire à investir le portefeuille du Fonds
d’infrastructures dans tout fonds ou émetteur indiqué dans la divulgation en matière de conflits, pourvu qu’un tel
placement soit conforme à la politique de placement du Fonds d’infrastructures.
Emploi des courtages
Conformément aux lois sur les valeurs mobilières canadiennes applicables, Fiera peut, à l’occasion, confier à un
courtier la réalisation d’une opération entraînant des courtages en échange de la prestation de biens ou de
services, de biens et de services d’exécution d’ordres comme des conseils ou des rapports de recherche. Pour
surveiller son emploi des courtages, Fiera a créé un comité et établi une politique et des procédures. Des
exemplaires de la politique de Fiera sur l’emploi des courtages peuvent être transmis aux porteurs de parts à leur
demande.
PARTS DU FONDS D’INFRASTRUCTURES
Les placements dans le Fonds d’infrastructures sont représentés par des parts. Le Fonds d’infrastructures est
autorisé à avoir un nombre illimité de séries de parts, émises parfois en un nombre illimité de sous-séries dont le
gestionnaire peut établir les modalités. Chaque part d’une série ou d’une sous-série représente une participation
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véritable indivise dans les actifs nets du Fonds d’infrastructures attribuables à cette série ou sous-série de parts.
Le gestionnaire, à son appréciation, établit le nombre de séries de parts ainsi que les caractéristiques de chaque
série, y compris l’admissibilité des investisseurs aux parts et l’opportunité d’émettre les parts en sous-séries, la
désignation et la monnaie de chaque série et sous-série, la date de clôture initiale et le prix d’offre initial de la
première émission de parts de la série ou de la sous-série, tout seuil de placement minimal initial ou ultérieur, le
montant des rachats minimum ou le solde minimum du compte, la fréquence des évaluations, les frais de la série
ou de la sous-série, les frais de souscription ou de rachat payables à l’égard de la série ou de la sous-série, les
droits de rachat, la capacité d’effectuer des conversions entre les séries et les caractéristiques supplémentaires
propres à la série ou à la sous-série. Le fiduciaire et le gestionnaire peuvent modifier la convention de fiducie
s’ils estiment, à leur entière appréciation, que cela est nécessaire afin de tenir compte de la création d’une autre
série ou sous-série de parts, sans avoir à en aviser les porteurs de parts. Les séries de parts du Fonds
d’infrastructures ne comportent actuellement aucune sous-série.
Le Fonds d’infrastructures comporte actuellement les deux séries de parts suivantes :
i) Parts de série A : cette série de parts est émise au moyen du produit de rachat provenant du rachat des
parts de catégorie IA du Fonds du marché monétaire (tel qu’il est décrit ci-après). Les parts de série A sont
conçues pour les investisseurs qui ne sont pas admissibles à l’acquisition des parts de série F.
ii) Parts de série F : cette série de parts est émise au moyen du produit de rachat provenant du rachat des
parts de catégorie IF du Fonds du marché monétaire (tel qu’il est décrit ci-dessous). Les parts de série F
sont conçues pour les investisseurs qui ont adhéré à un programme de services assortis de frais ou à un
programme intégré parrainé par un courtier et qui doivent payer des frais annuels en fonction des actifs
gérés plutôt que des commissions sur chaque opération ou, à l’appréciation du gestionnaire, pour tout autre
investisseur pour lequel le gestionnaire n’engage aucuns frais de placement.
Certains frais, y compris les frais de gestion et la rémunération liée au rendement, et les passifs du Fonds
d’infrastructures, tels qu’ils figurent dans la présente notice d’offre ou sont déterminés par le fiduciaire ou le
gestionnaire, à leur seule appréciation, sont attribués exclusivement à une série particulière de parts du Fonds
d’infrastructures (les « frais de la série »).
Bien que les sommes d’argent investies par les investisseurs dans le Fonds d’infrastructures soient
comptabilisées par série dans les registres administratifs du Fonds d’infrastructures, les actifs de toutes les séries
du Fonds d’infrastructures seront regroupés en vue de créer un seul portefeuille aux fins de placement.
Si un point d’ordre général devant être soumis à l’assemblée des porteurs de parts se rapporte à une question
pertinente pour tous les porteurs de parts du Fonds d’infrastructures, les droits de vote rattachés aux parts de
toutes les séries du Fonds d’infrastructures seront exercés ensemble. Si une question peut avoir une incidence
sur les porteurs d’une série particulière qui est très différente de celle qu’elle aurait sur les porteurs d’une autre
série, seuls les porteurs de parts des séries touchées par la question auront le droit de voter, et le droit de vote
rattaché à ces parts sera exercé de façon distincte en tant que série.
Toutes les parts de la même série confèrent le droit de participer en proportion : (i) aux paiements ou aux
distributions (sauf s’il s’agit de distributions sur les frais de gestion décrits à la rubrique « Rémunération et
frais ») faits par le Fonds d’infrastructures aux porteurs de parts dans la même série; et (ii) au moment de la
liquidation du Fonds d’infrastructures, aux distributions versées aux porteurs de la même série des actifs nets du
Fonds d’infrastructures attribuables à la série qui restent après l’acquittement des passifs impayés de cette série.
Les parts ne sont pas transférables, sauf par effet de la loi (par exemple, dans le cas d’un décès ou de la faillite
d’un porteur de parts) ou du consentement du gestionnaire. Pour aliéner ses parts du Fonds d’infrastructures, un
porteur de parts doit les faire racheter.
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Une fraction de part confère les mêmes droits et est assujettie aux mêmes conditions qu’une part entière (sauf en
ce qui concerne le droit de vote) dans la proportion qu’elle représente par rapport à une part entière. Les parts
d’une série en circulation peuvent être subdivisées ou regroupées à l’appréciation du gestionnaire sur remise
d’un préavis écrit de 21 jours; toutefois, aucune subdivision ou ni aucun regroupement ne peut viser les parts
d’une série à moins qu’une subdivision ou un regroupement identique soit effectué à l’égard de toutes les autres
séries du Fonds d’infrastructures. Le gestionnaire peut changer la désignation des parts d’une série pour qu’elles
deviennent des parts d’une autre série en fonction de la valeur liquidative de la série ou de la valeur liquidative
(définies à la rubrique « Détermination de la valeur liquidative »).
DÉTERMINATION DE LA VALEUR LIQUIDATIVE
La valeur liquidative du Fonds d’infrastructures (la « valeur liquidative ») correspond à la valeur de l’actif du
Fonds d’infrastructures, après déduction de ses passifs, calculée à une date donnée conformément à la
convention de fiducie. Le gestionnaire calculera la valeur liquidative du Fonds d’infrastructures le dernier jour
ouvrable (un jour au cours duquel la Bourse de Toronto (« Bourse de Toronto ») est ouverte, est aux présentes
un « jour ouvrable ») de chaque mois, le 31 décembre de chaque année au moment du transfert (dans chaque
cas, un « jour d’évaluation »), à la clôture de la séance à la Bourse de Toronto, habituellement à 16 h (heure de
l’Est) (l’« heure d’évaluation »).
Le gestionnaire calculera également, à l’heure d’évaluation chaque jour d’évaluation, la valeur liquidative du
Fonds d’infrastructures attribuable à chaque série de parts du Fonds d’infrastructures (la « valeur liquidative de
la série ») et la valeur liquidative par part de chaque série de parts du Fonds d’infrastructures (la « valeur
liquidative par part de la série »).
La valeur liquidative de la série correspondra, pour chaque série du Fonds d’infrastructures, à la quote-part de la
valeur liquidative du Fonds d’infrastructures attribuable à cette série, après déduction des frais de la série
imputables à cette série.
La valeur liquidative par part de la série dans le cas des parts de chaque série du Fonds d’infrastructures
correspondra au quotient obtenu en divisant le montant de la valeur liquidative de la série par le nombre total de
parts en circulation de la série en question, y compris les fractions de part de cette série, avec rajustement du
résultat jusqu’à trois décimales.
Le nombre de parts, la valeur des actifs et le montant des passifs du Fonds d’infrastructures sont établis par le
gestionnaire selon son bon jugement, conformément aux lois sur les valeurs mobilières applicables, aux
principes comptables généralement reconnus et aux pratiques du marché courantes en pareilles circonstances,
appliquées de manière uniforme.
Le Fonds d’infrastructures n’évaluera pas de façon indépendante les titres des Fonds sous-jacents (ni d’aucun
autre fonds) qu’il acquiert. Le Fonds d’infrastructures se fondera plutôt sur l’évaluation de ces titres établie par
le gestionnaire, le commandité ou le fiduciaire des Fonds sous-jacents.
PLACEMENT DANS LE FONDS D’INFRASTRUCTURES
Placement dans le Fonds d’infrastructures au moyen du Fonds du marché monétaire
Les parts du Fonds d’infrastructures ne sont pas directement offertes aux investisseurs. Les investisseurs qui
souhaitent investir dans le Fonds d’infrastructures doivent préalablement souscrire des parts du FONDS FIERA
COURT TERME PLUS (le « Fonds du marché monétaire ») jusqu’à ce que le gestionnaire décide, à son seul gré,
d’accepter les souscriptions pour le Fonds d’infrastructures. L’offre de souscription décrivant les
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caractéristiques du Fonds du marché monétaire est annexée à la présente notice d’offre en Annexe A (l’« offre
de souscription du marché monétaire »).
Comme il est décrit dans l’offre de souscription du marché monétaire, jointe à la présente notice d’offre à
l’Annexe A, les parts de catégorie IA et les parts de catégorie IF du Fonds du marché monétaire seront offertes à
leur valeur liquidative de la catégorie visée calculée à la prochaine date d’évaluation pertinente du Fonds du
marché monétaire.
La décision d’accepter les souscriptions pour le Fonds d’infrastructures sera prise en fonction des possibilités de
placement pour le Fonds d’infrastructures, des engagements d’apport de capital de tout Fonds sous-jacent (y
compris les Fonds Fiera Axium), et d’autres facteurs que le gestionnaire peut déterminer à son seul gré.
Si le gestionnaire décide d’accepter des souscriptions pour le Fonds d’infrastructures (le « moment du
transfert »), il rachètera, pour le compte de chaque investisseur admissible à souscrire des parts du Fonds
d’infrastructures, des parts de catégorie IA et des parts de catégorie IF du Fonds du marché monétaire détenues
par cet investisseur et affectera le produit de ce rachat, après déduction des frais initiaux (au sens donné à ceuxci à la rubrique « Frais d’entrée du Fonds d’infrastructures »), à la souscription de parts de la série équivalente
du Fonds d’infrastructures.
Priorité pour la souscription des parts du Fonds d’infrastructures sera donnée aux investisseurs en fonction de la
date à laquelle ils ont investi dans le Fond du marché monétaire; les investisseurs qui ont souscrit des parts de
catégorie IA et des parts de catégorie IF du Fonds du marché monétaire le même jour seront traités au prorata
avec les autres investisseurs qui ont également investi le même jour, peu importe la catégorie de parts du Fonds
du marché monétaire qu’ils ont acquises.
Les parts de catégorie IA et les parts de catégorie IF du Fonds du marché monétaire (les « parts offertes ») sont
offertes au moyen de FundSERV, le système d’inscription des ordres des organismes de placement collectif. Les
souscriptions de parts du Fonds du marché monétaire doivent être effectuées par un placeur sur le réseau
FundSERV sous le code de fabricant attribué à FIERA CAPITAL CORPORATION « FIA » et les codes d’ordres
suivants :
Parts de catégorie IA
« FIA285 »
Parts de catégorie IF
« FIA385 »
Les investisseurs qui souhaitent effectuer un placement dans le Fonds d’infrastructures (au moyen d’un
placement conséquent dans le Fonds du marché monétaire) peuvent le faire en remettant une demande de
souscription (essentiellement selon le modèle de demande de souscription joint à la notice d’offre ou selon un
autre formulaire de demande de souscription que le gestionnaire peut approuver à l’occasion) au gestionnaire
par l’intermédiaire de courtiers (définis ci-après) ou d’autres personnes autorisées par les lois sur les valeurs
mobilières applicables à vendre des parts offertes, accompagnée d’un virement électronique de fonds d’un
montant correspondant au prix de souscription par l’intermédiaire du réseau FundSERV. Les souscriptions
supplémentaires de parts offertes doivent être effectuées en remettant une demande à cet effet par l’entremise du
réseau FundSERV.
Le gestionnaire doit recevoir du courtier de l’investisseur les demandes de souscription pour les placements
initiaux ou les demandes de placement supplémentaires par l’entremise du réseau FundSERV avant 16 h (heure
de l’Est) le jour ouvrable précédant le jour d’évaluation applicable. Toutes les souscriptions de parts de
catégorie IA et de catégorie IF du Fonds du marché monétaire doivent être effectuées par un placeur sur le
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réseau FundSERV. Le gestionnaire n’acceptera aucune souscription directe. Les parts du Fonds du marché
monétaire ne peuvent être achetées qu’en dollars canadiens.
Le gestionnaire peut limiter la valeur globale des souscriptions à une date de souscription particulière
(la « valeur maximale des souscriptions »). S’il reçoit, pour une date de souscription donnée, un ou plusieurs
ordres dont la valeur excède la valeur maximale des souscriptions pour la date de souscription en question, le
gestionnaire réduira équitablement la valeur des ordres, selon ce qu’il détermine, à son entière appréciation. Les
ordres de souscription réduits (ou rejetés) ne sont pas reportés à la date de souscription suivante.
Le gestionnaire se réserve le droit d’accepter ou de refuser les ordres, et toutes les sommes d’argent reçues avec
un ordre refusé seront remboursées sans délai, sans intérêt, autre contrepartie ou déduction après que le
gestionnaire aura pris cette décision. Le gestionnaire n’acceptera aucune souscription de la part des personnes
suivantes ni ne donnera instruction que des parts leur soient émises ou transférées : a) une personne qui est ou
pourrait être un « bénéficiaire étranger ou assimilé » du Fonds d’infrastructures, au sens de cette expression à la
Partie XII.2 de la Loi de l’impôt sur le revenu (Canada) (la « Loi de l’impôt ») si, en conséquence de ce fait, le
Fonds d’infrastructures pourrait être susceptible de payer de l’impôt en vertu de la Partie XII.2 de la Loi de
l’impôt; ou b) à une « institution financière » au sens de la Loi de l’impôt aux fins des règles d’évaluation à la
valeur du marché, si le Fonds d’infrastructures lui-même devait être réputé constituer une « institution
financière » aux termes de ces règles du fait de cette souscription ou émission de parts. Si à un moment
quelconque le gestionnaire apprend que des parts sont la propriété véritable d’une ou de plusieurs des entités
décrites précédemment, le Fonds d’infrastructures peut racheter la totalité ou une partie des parts selon les
modalités que le gestionnaire estime convenables dans les circonstances. Toutes les souscriptions de parts
et (ou) leur transfert seront, si le gestionnaire l’exige, accompagnés d’une preuve que le gestionnaire estime
satisfaisante confirmant que l’investisseur qui effectue la souscription ou le transfert n’est pas ni ne sera un
« bénéficiaire étranger ou assimilé » du Fonds d’infrastructures. Toutes les souscriptions seront irrévocables.
Des fractions de part comportant jusqu’à trois décimales seront émises.
Un système d’inscription en compte est tenu à l’égard du Fonds d’infrastructures. Aucun certificat de parts ne
sera émis. Le registre des parts est tenu au bureau du fiduciaire.
Veuillez vous reporter à l’offre de souscription du marché monétaire, jointe aux présentes à l’Annexe A, pour
plus de détails sur la souscription de parts de catégorie IA et de catégorie IF du Fonds du marché monétaire.
Admissibilité du placement dans le Fonds d’infrastructures et le Fonds du marché monétaire
Seuls les investisseurs résidents dans une province du Canada (les « territoires du placement ») qui profitent
d’une dispense des exigences de prospectus figurant dans les lois sur les valeurs mobilières de chaque territoire
du placement sont admissibles à souscrire des parts du Fonds du marché monétaire et des parts du Fonds
d’infrastructures. Par conséquent, le Fonds d’infrastructures et le Fonds du marché monétaire sont uniquement
offerts aux investisseurs qui sont des « investisseurs qualifiés » au sens donné à cette expression dans le
Règlement 45-106 sur les dispenses de prospectus et d’inscription. Les investisseurs devront également aviser le
gestionnaire si leur situation d’« investisseur qualifié » change. Au moment du transfert, un investisseur qui
n’est pas admissible à souscrire des parts du Fonds d’infrastructures se fera racheter ses parts du Fonds du
marché monétaire.
RACHAT DE PARTS
Rachat de parts de catégorie IA et de catégorie IF du Fonds du marché monétaire
Le Fonds du marché monétaire offre un droit limité de rachat aux porteurs de parts de catégorie IA et de
catégorie IF dont les parts n’ont pas été transférées dans le Fonds d’infrastructures dans les deux ans suivant leur
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souscription. Ces rachats seront uniquement honorés dans la mesure où le gestionnaire estime, à son seul gré,
que ces rachats ne compromettront d’aucune façon la capacité du Fonds d’infrastructures d’honorer ses
engagements de capitaux envers les Fonds sous-jacents (y compris les Fonds Fiera Axium).
En plus ce qui précède, le gestionnaire peut, à l’occasion, à son gré, offrir un droit limité de rachat aux porteurs
de parts selon les conditions établies, à l’occasion, par le gestionnaire.
La convention de fiducie du Fonds du marché monétaire prévoit que le gestionnaire, à son seul gré, peut forcer
le rachat des parts de catégorie IA et de catégorie IF. Ces parts seraient rachetées à la valeur liquidative par part
de la catégorie.
Rachat de parts de série A et de série F du Fonds d’infrastructures
Les rachats de parts de série A et de série F du Fonds d’infrastructures doivent être effectués par un placeur sur
le réseau FundSERV sous le code de fabricant se rapportant à FIERA CAPITAL CORPORATION « FIA » et les
codes d’ordres suivants :
Parts de série A
« FIA286 »
Parts de série F
« FIA386 »
Les parts du Fonds d’infrastructures peuvent être remises au gestionnaire en vue de leur rachat sur présentation
d’une demande de rachat sur le réseau FundSERV avant l’heure d’évaluation 60 jours avant le jour d’évaluation
applicable au cours duquel le détenteur demande le rachat de ces parts (la « date de rachat »). Toute demande
de rachat remise après cette heure sera traitée le jour d’évaluation suivant. Les demandes de rachat seront
acceptées dans l’ordre selon lequel elles sont reçues.
Ces demandes de rachat sont honorées par le Fonds d’infrastructures dans la mesure uniquement où, de l’avis du
gestionnaire, le Fonds d’infrastructures possède suffisamment de liquidités pour régler ses dettes et où le rachat
n’aura pas d’incidence défavorable importante sur les porteurs de parts restants du Fonds d’infrastructures.
Le gestionnaire déploie des efforts commercialement raisonnables pour faire en sorte que le Fonds
d’infrastructures obtienne les liquidités nécessaires pour honorer les demandes de rachat. Pour ce faire, le
gestionnaire a mis en place une stratégie visant à maximiser le profil de liquidité du Fonds d’infrastructures. Le
gestionnaire : (i) cherchera à conserver environ 20 % des actifs du Fonds d’infrastructures dans le portefeuille de
liquidités; (ii) déploiera des efforts commercialement raisonnables pour assortir les investisseurs qui cherchent à
faire racheter leurs parts du Fonds d’infrastructures à des investisseurs qui détiennent alors des parts du Fonds
du marché monétaire et qui cherchent à souscrire des parts du Fonds d’infrastructures; (iii) cherchera à appliquer
une partie du rendement de placement du Fonds d’infrastructures (y compris les rendements découlant de
l’aliénation d’actifs des Fonds sous-jacents) aux demandes de rachat; et (iv) envisagera la possibilité de faire
racheter ou de vendre la participation du Fonds d’infrastructures dans les Fonds sous-jacents (pourvu qu’un tel
rachat n’ait pas d’incidence défavorable importante sur les porteurs de parts restants du Fonds d’infrastructures).
Advenant que le Fonds d’infrastructures soit incapable d’honorer une demande de rachat (ou que la demande de
rachat ne puisse être honorée qu’en partie), la demande de rachat sera reportée au prochain jour d’évaluation.
Les demandes de rachat sont traitées dans l’ordre dans lequel elles sont reçues.
Si le Fonds d’infrastructures est en mesure d’honorer la demande de rachat (en totalité ou en partie), le
gestionnaire, dans les 15 jours suivant le calcul de la valeur liquidative par part de la série à la date de rachat
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applicable, distribuera un montant correspondant à la valeur liquidative par part de la série (compte tenu de
l’escompte au rachat décrit ci-après, le cas échéant) calculée à la date de rachat pertinente. Le paiement du
produit du rachat sera effectué en utilisant le réseau FundSERV. Tout paiement auquel il est fait référence
ci-dessus, à moins qu’il ne soit pas accepté, libérera le Fonds d’infrastructures, le fiduciaire, le gestionnaire et
leurs mandataires de toute responsabilité envers le porteur de parts qui demande le rachat pour ce qui est du
paiement et des parts rachetées, et le porteur de parts cessera d’avoir d’autres droits quant à ces parts à la date de
rachat.
Escompte au rachat
La valeur liquidative par part de la série des parts du Fonds d’infrastructures rachetées avant la cinquième date
d’anniversaire de la souscription par le porteur de parts du Fonds du marché monétaire (la « date de
souscription initiale ») est assujettie à l’escompte applicable à leur valeur liquidative par part de la série à la
date de rachat visée (l’« escompte au rachat ») :

la valeur liquidative par part de la série des parts rachetées dans la première année suivant la date de
souscription initiale fera l’objet d’un escompte de 5 %;

la valeur liquidative par part de la série des parts rachetées après la première année, mais avant la fin
de la deuxième année de la date de souscription initiale fera l’objet d’un escompte de 4 %;

la valeur liquidative par part de la série des parts rachetées après la deuxième année, mais avant la fin
de la troisième année de la date de souscription initiale fera l’objet d’un escompte de 3 %;

la valeur liquidative par part de la série des parts rachetées après la troisième année, mais avant la fin
de la quatrième année de la date de souscription initiale fera l’objet d’un escompte de 2 %;

la valeur liquidative par part de la série des parts rachetées après la quatrième année, mais avant la fin
de la cinquième année de la date de souscription initiale fera l’objet d’un escompte de 1 %;

la valeur liquidative par part de la série des parts rachetées après la cinquième année suivant la date de
souscription initiale ne fera pas l’objet d’un escompte.
Suspension des rachats de parts du Fonds d’infrastructures
Le gestionnaire peut suspendre les rachats de toute série de parts du Fonds d’infrastructures ou le paiement du
produit de rachat à l’égard de telles parts, s’il se voit obligé de le faire en vertu des lois sur les valeurs
mobilières applicables, ou s’il estime que les conditions en vigueur font en sorte (i) qu’il n’est pas
raisonnablement pratique de calculer équitablement la valeur par part de ces parts, (ii) qu’il ne serait pas
équitable de permettre les rachats pour les autres porteurs de parts des Fonds dans leur ensemble, ou (iii) que le
droit du Fonds d’infrastructures de faire racheter ses placements dans un Fonds sous-jacent pourrait être
suspendu par ce Fonds sous-jacent, pourvu qu’une telle suspension ne soit pas interdite en vertu des lois sur les
valeurs mobilières applicables.
La suspension s’applique à toutes les demandes de rachat reçues avant la période de suspension du rachat de
parts décrétée par le gestionnaire (la « période de suspension »), mais pour lesquelles un paiement n’a pas été
effectué, ainsi qu’à toutes les demandes reçues pendant la période de suspension. Tous les porteurs de parts qui
font de telles demandes de rachat seront avisés par le gestionnaire de la suspension et du fait que les rachats
seront effectués en fonction de la valeur liquidative par part de la série calculée à la première date d’évaluation
après la fin de la période de suspension. Toute pareille suspension prendra fin le jour déterminé par le
gestionnaire conformément aux lois sur les valeurs mobilières applicables.
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Déduction applicable aux opérations à court terme
Afin de protéger l’intérêt de la majorité des porteurs de parts du Fonds d’infrastructures et de décourager les
opérations à court terme dans le Fonds d’infrastructures, les porteurs de parts peuvent être assujettis à une
déduction applicable aux opérations à court terme. Si un porteur de parts fait racheter des parts du Fonds
d’infrastructures dans un délai de 120 jours de leur acquisition, le Fonds d’infrastructures peut déduire et
conserver, au bénéfice des porteurs de parts restants du Fonds d’infrastructures, cinq pour cent (5 %) de la
valeur liquidative des parts de la série qui font l’objet du rachat.
Rachat à la demande du gestionnaire
Le gestionnaire peut, à son appréciation, faire en sorte que le Fonds d’infrastructures rachète la totalité ou une
partie des parts d’un porteur de parts en donnant un préavis écrit de 30 jours au porteur de parts qui précise le
nombre ou la valeur des parts qui doivent être rachetées. Ainsi, le gestionnaire peut faire en sorte que les parts
de tout porteur de parts soient rachetées si, en tout temps en raison des rachats, la valeur du placement d’un
porteur de parts dans le Fonds d’infrastructures est inférieure au montant de la souscription initiale minimale. Si
à un moment quelconque, le porteur de parts est en situation de manquement face aux déclarations faites, aux
garanties données et aux engagements pris dans la demande de souscription, Fiera peut faire en sorte que le
Fonds d’infrastructures rachète les parts dont ce porteur de parts est propriétaire immédiatement et sans aucun
avis. En outre, le gestionnaire peut faire en sorte que le Fonds d’infrastructures rachète sans avis des parts dont
est propriétaire i) une personne ou une société de personnes qui est un « bénéficiaire étranger ou assimilé », au
sens de la Partie XII.2 de la Loi de l’impôt, si le maintien de la propriété de parts par cette personne ou société
de personnes devait avoir des conséquences fiscales défavorables pour le Fonds d’infrastructures; ou ii) une
institution financière si le maintien de la propriété de parts de cette institution financière pouvait faire en sorte
que le Fonds d’infrastructures devienne une institution financière au sens de l’article 142.2 de la Loi de l’impôt.
TRANSFERT DE PARTS
Les parts ne sont transférables que par effet de la loi ou du consentement du gestionnaire. Il n’y a aucun marché
officiel pour les parts et il n’est pas prévu qu’un tel marché se crée. En outre, le présent placement de parts n’est
pas visé au moyen d’un prospectus et, par conséquent, la revente des parts sera assujettie à des restrictions aux
termes des lois sur les valeurs mobilières applicables. Les porteurs de parts pourraient ne pas être en mesure de
revendre les parts et n’être en mesure que de les faire racheter. Les rachats de parts sont assujettis aux
restrictions décrites aux rubriques « Rachat de parts » et « Placement dans le Fonds d’infrastructures ». Les
investisseurs sont priés d’obtenir des conseils juridiques avant de revendre les parts.
RÉMUNÉRATION ET FRAIS
Frais – Généralités
Le Fonds d’infrastructures acquittera la totalité des frais habituels et ordinaires relatifs à son exploitation, y
compris les frais administratifs, la rémunération et les frais de l’agent chargé de la tenue des registres et agent
des transferts, les honoraires du fiduciaire (le cas échéant) et du dépositaire, les honoraires et frais d’audit, de
comptabilité et ceux de conseillers juridiques, les frais de communication, d’impression et d’envoi par la poste,
l’ensemble des frais associés à la vente ou au rachat de parts, y compris les droits de dépôt (le cas échéant) et les
frais de service des courtiers (sauf les commissions de service des courtiers dont il est question à la rubrique
« Rémunération des courtiers » qui sont à la charge du gestionnaire), les frais se rapportant à la remise de
rapports financiers et autres aux porteurs de parts et à la convocation et à la tenue d’assemblées des porteurs de
parts, l’ensemble des impôts et taxes, des cotisations ou autres charges imposées par le gouvernement au Fonds
d’infrastructures, les intérêts débiteurs ainsi que l’ensemble des courtages et autres frais concernant l’achat et la
vente des actifs du Fonds d’infrastructures. En outre, le Fonds d’infrastructures acquittera les frais associés aux
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relations avec les investisseurs et à l’information concernant le Fonds d’infrastructures. Les frais associés au
placement des parts au moyen de la présente notice d’offre seront des frais de la série attribuables aux séries
offertes aux termes des présentes.
À chaque série de parts correspondent des frais de la série qui se rapportent précisément à cette série et la quotepart des frais qui sont communs à toutes les séries de parts. Le gestionnaire répartira les frais entre chaque série
de parts selon ce qu’il estime équitable et raisonnable dans les circonstances, à sa seule appréciation.
Le gestionnaire peut, à l’occasion, renoncer à une partie des frais et au remboursement des dépenses qui lui sont
par ailleurs payables, mais une telle renonciation n’a aucune incidence sur son droit de recevoir des frais et le
remboursement des dépenses qui s’accumulent ultérieurement en sa faveur.
Dépenses se rapportant à la prise d’engagements
Le gestionnaire a convenu de payer les frais qui sont engagés par le Fonds d’infrastructures relativement à la
prise d’engagements de capitaux de ce dernier dans un Fonds sous-jacent (les « frais initiaux du Fonds sousjacent »), y compris la contribution pour le partage des coûts de l’organisation et tous les frais d’engagement
imputés en fonction du capital engagé, mais non encore investi. Par exemple, dans le cas d’un engagement de
capitaux effectué par le Fonds d’infrastructures dans l’un des Fonds Axium Fiera, le gestionnaire prendra en
charge la contribution pour le partage des coûts de l’organisation de 0,3 % de l’engagement de capitaux et de
0,75 % des frais d’engagement annuels sur le capital engagé, mais non encore investi par le Fonds
d’infrastructures.
Frais d’entrée du Fonds d’infrastructures
En contrepartie du paiement par le gestionnaire des frais initiaux du Fonds sous-jacent, le gestionnaire facturera
à chaque investisseur souscrivant des parts du Fonds d’infrastructures des frais d’entrée uniques de 0,75 % (les
« frais d’entrée ») sur la valeur des parts du Fonds du marché monétaire qui sont rachetées à des fins de
souscription dans le Fonds d’infrastructures.
Le gestionnaire peut, à l’occasion, à son seul gré, renoncer à la totalité ou à une partie des frais d’entrée qui lui
sont payables par un investisseur souscrivant des parts du Fonds d’infrastructures.
Les frais d’entrée sont assujettis aux taxes applicables, dont la TVQ et la TPS ou la TVH.
Frais de gestion
En contrepartie des services qu’il rend au Fonds d’infrastructures, le gestionnaire recevra du Fonds
d’infrastructures des frais de gestion mensuels (les « frais de gestion ») attribuables aux parts des séries
offertes. Les frais de gestion sont, dans le cas de chaque série offerte, les frais de la série attribuables à la série
visée. Des frais de gestion correspondant à un douzième des pourcentages suivants par mois de la valeur
liquidative de la série du Fonds d’infrastructures, calculés, accumulés et payables mensuellement, sont appliqués
aux parts des séries offertes :
Série A
Série F
1,50 %
0,75 %
Les frais de gestion perçus par le gestionnaire s’ajoutent aux autres frais payés indirectement par le Fonds
d’infrastructures en raison de sa détention des autres Fonds sous-jacents. Par exemple, le Fonds d’infrastructures
- 16 -
pourrait devoir payer à Fiera Axium, de façon indirecte en raison de son placement dans les Fonds Fiera Axium,
des frais de gestion annuels pouvant atteindre 1,25 % ainsi que certaines primes incitatives (tel qu’il est décrit en
détail dans la notice d’offre confidentielle jointe à la présente notice d’offre à l’Annexe B). Par conséquent,
aucun rajustement ne sera apporté aux frais de gestion afin de tenir compte des frais payés par les Fonds Fiera
Axium à Fiera Axium. Le gestionnaire touche également des frais de gestion du Fonds du marché monétaire,
tels qu’ils sont décrits plus précisément dans l’offre de souscription du marché monétaire.
Le gestionnaire peut, à l’occasion, à son seul gré, renoncer à la totalité ou à une partie des frais de gestion qui lui
sont payables par le Fonds d’infrastructures et (ou) le Fonds du marché monétaire.
Les frais de gestion sont assujettis aux taxes applicables, dont la TVQ et la TPS ou la TVH.
Remise sur les frais
Pour encourager les placements importants dans le Fonds d’infrastructures et pour être en mesure d’offrir des
frais qui sont concurrentiels pour les placements d’une telle taille et dans certaines autres circonstances, le
gestionnaire peut à l’occasion (i) réduire les frais de gestion auxquels il pourrait avoir par ailleurs droit, et
(ii) rembourser certaines des dépenses du Fonds d’infrastructures, à l’égard d’un placement d’un investisseur
dans le Fonds d’infrastructures, pourvu que la remise sur les frais ou le remboursement des dépenses soit
distribué (une « distribution sur les frais ») à ce porteur de parts. Les distributions sur les frais du Fonds
d’infrastructures, le cas échéant, seront calculées chaque jour d’évaluation et seront payables tous les trimestres,
ou aux autres moments que le gestionnaire peut établir, d’abord à partir du revenu net et des gains en capital nets
du Fonds d’infrastructures et par la suite comme remboursement de capital. Une telle réduction des frais de
gestion ou un tel remboursement des dépenses en ce qui concerne un placement important dans le Fonds
d’infrastructures sera négocié par le gestionnaire et l’investisseur ou le courtier de l’investisseur et sera fonction
principalement de la taille du placement de l’investisseur dans le Fonds d’infrastructures et de la quantité totale
des services fournis à l’investisseur relativement à son placement dans le Fonds d’infrastructures. Le
gestionnaire peut également réduire d’abord ses frais et rembourser des dépenses pour encourage les placements
d’amorçage dans le Fonds d’infrastructures. Un investisseur admissible peut choisir de recevoir la distribution
sur les frais au comptant ou sous forme de parts supplémentaires du Fonds d’infrastructures. Le montant de toute
distribution sur les frais est imposable pour le porteur de parts qui le reçoit, dans la mesure où il est payé à partir
du revenu net ou des gains en capital nets du Fonds d’infrastructures. Veuillez vous reporter aux rubriques
« Incidences fiscales fédérales canadiennes » et « Distributions ».
RÉMUNÉRATION DES COURTIERS
Les parts seront placées dans les territoires du placement par l’entremise de courtiers inscrits (les « courtiers »),
y compris le gestionnaire et les autres personnes qui peuvent être autorisées à le faire par le droit applicable.
Dans le cas d’un tel placement, les courtiers (sauf le gestionnaire) sont en droit de recevoir la rémunération
décrite ci-après.
Commissions de vente
Les courtiers inscrits (les « courtiers ») qui placent des parts du Fonds du marché monétaire en vue d’un
placement dans le Fonds d’infrastructures peuvent recevoir une commission de vente pouvant atteindre 5 %, qui
sera déduite de l’ordre de souscription et payée par l’investisseur au courtier. Les commissions de vente peuvent
être négociées entre le courtier et l’investisseur.
Les parts du Fonds du marché monétaire émises au moment du réinvestissement de distributions, ainsi qu’il est
décrit dans l’offre de souscription du marché monétaire, ne seront pas assujetties à une commission de vente.
- 17 -
La souscription de parts du Fonds d’infrastructures effectuée au moment du transfert au moyen du produit de
rachat du Fonds du marché monétaire ne sera pas assujettie à une commission de vente.
Le mode avec frais de souscription reportés n’est pas offert.
Frais de service
Le gestionnaire versera aux courtiers des commissions de service en contrepartie des conseils et des services
permanents fournis à l’égard des parts de catégorie IA du Fonds du marché monétaire et des parts de série A du
Fonds d’infrastructures.
Les commissions de service sont accumulées chaque jour d’évaluation et sont versées tous les trimestres au taux
annuel actuel de 0,75 % de la valeur liquidative de la série des parts de la série A, et au taux de 0,20 % de la
valeur liquidative de la catégorie des parts de catégorie IA du Fonds du marché monétaire, détenues par les
clients du courtier.
Le gestionnaire ne verse aucune commission de service en ce qui concerne les parts de catégorie IF du Fonds du
marché monétaire ni en ce qui concerne les parts de série F du Fonds d’infrastructures.
Le gestionnaire peut en tout temps modifier les commissions de service ou y mettre fin.
DISTRIBUTIONS
Le Fonds d’infrastructures compte distribuer un montant suffisant de revenu net et de gains en capital réalisés
nets, le cas échéant, aux porteurs de parts au cours de chaque année civile pour s’assurer de ne pas être assujetti
à l’impôt sur le revenu aux termes de la Partie I de la Loi de l’impôt, après avoir tenu compte de tout report de
perte prospectif. Le Fonds d’infrastructures peut également à l’occasion, lorsque le gestionnaire l’estime
opportun, effectuer un remboursement de capital aux porteurs de parts.
Toutes les distributions (sauf les distributions sur les frais) seront versées en proportion de chaque série, à
chaque porteur de parts inscrit à la fermeture des bureaux le jour d’évaluation applicable.
Le Fonds d’infrastructures versera des distributions, le cas échéant, trimestriellement, le dernier jour
d’évaluation de chaque trimestre civil, et aux autres dates que le gestionnaire estime convenables.
Bien que le gestionnaire s’attende à ce que les distributions aux porteurs de parts soient généralement versées au
comptant, le gestionnaire pourra, à son seul gré, utiliser une partie ou la totalité des rendements de placement du
Fonds d’infrastructures pour honorer des demandes de rachat, renflouer le portefeuille de liquidités et effectuer
de nouveaux placements ou des placements de suivi. Dans un tel cas, les distributions seront investies dans des
parts du Fonds d’infrastructures. Les parts acquises au moment du réinvestissement des distributions ne
comportent aucuns frais de vente.
Le gestionnaire, après avoir consulté le fiduciaire, peut faire les attributions, les déterminations et les répartitions
aux fins de l’impôt d’un montant ou d’une partie d’un montant que le Fonds d’infrastructures a reçu, payé,
déclaré payable ou attribué à un porteur de parts comme distributions ou produit de rachat.
Les frais afférents aux distributions, le cas échéant, seront acquittés par le Fonds d’infrastructures.
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INCIDENCES FISCALES FÉDÉRALES CANADIENNES
Le texte suivant constitue, en date des présentes, un résumé des principales incidences fiscales fédérales
canadiennes découlant généralement d’un placement dans les parts. À moins d’indication contraire, le présent
résumé ne s’applique qu’aux placements effectués par un particulier (sauf une fiducie) qui, aux fins de la Loi de
l’impôt, réside au Canada, traite sans lien de dépendance avec le Fonds d’infrastructures, n’est pas une personne
affiliée au Fonds d’infrastructures et détient ses parts comme immobilisations. En règle générale, les parts seront
considérées comme des immobilisations pour un porteur, pourvu que le porteur ne détienne pas les parts dans le
cadre de l’exploitation d’une entreprise et ne les ait pas acquises dans le cadre d’une ou de plusieurs opérations
considérées comme un projet comportant un risque ou une affaire de caractère commercial. Les incidences
fiscales pour un porteur de parts découlant de l’acquisition, de la détention et de la disposition de parts
dépendront de nombreux facteurs, dont le territoire de résidence du porteur de parts et la manière dont il acquiert
et dispose des parts et la fréquence à laquelle il le fait.
La présente description repose sur les dispositions actuelles de la Loi de l’impôt, les propositions précises visant
à modifier la Loi de l’impôt (les « propositions fiscales ») annoncées par le ministre des Finances du Canada ou
pour son compte avant la date des présentes et les pratiques et les politiques administratives et de cotisation
actuelles rendues accessibles par l’Agence du revenu du Canada (« ARC ») et publiées par écrit. Si l’une ou
l’autre des propositions fiscales n’est pas adoptée sous sa forme actuellement envisagée, les incidences fiscales
pour le Fonds d’infrastructures et les porteurs de parts pourraient dans certains cas différer de celles décrites aux
présentes. La présente description n’aborde pas toutes les incidences fiscales fédérales canadiennes possibles
applicables et, sauf en ce qui concerne les propositions fiscales, ne tient pas compte ni ne prévoit de
modifications des lois, que ce soit au moyen d’une mesure législative, gouvernementale ou judiciaire, ni des
conséquences fiscales provinciales ou étrangères, qui pourraient différer sensiblement de celles dont il est
question dans les présentes. Rien ne garantit que les propositions fiscales seront adoptées ni qu’elles le seront
dans la version dans laquelle elles ont été annoncées publiquement.
Le présent résumé est fondé sur l’hypothèse selon laquelle le Fonds d’infrastructures ne sera considéré à aucun
moment comme une « fiducie EIPD », au sens donné à cette expression dans les règles de la Loi de l’impôt se
rapportant aux fiducies EIPD et aux sociétés de personnes intermédiaires de placement déterminées. Cette
hypothèse est fondée, à son tour, sur l’hypothèse selon laquelle les parts ne seront à aucun moment inscrites à la
cote d’une bourse ou négociées sur un marché public, aux fins de l’application de la Loi de l’impôt. Pour
l’application de ces règles, le mécanisme de rachat prévu aux présentes ne fait pas en sorte que les parts soient
considérées comme des titres négociés sur un marché public. Le présent résumé est également fondé sur
l’hypothèse voulant qu’aucun des biens du Fonds d’infrastructures ne constitue un « abri fiscal » ni un « abri
fiscal déterminé », tous deux au sens de la Loi de l’impôt.
Il est présumé que le Fonds d’infrastructures ne possèdera pas de placement important dans des participations
dans des fiducies non résidentes qui seraient réputées être un résident du Canada aux fins de l’application de la
Loi de l’impôt. En outre, il est présumé que le Fonds n’investira pas dans des titres d’émetteurs non canadiens
qui tirent leur valeur principalement des placements du portefeuille, mais s’il investit malgré cela, aucun des
principaux motifs pour un tel placement ne visera à réduire de façon importante le montant de l’impôt qui serait
autrement payable aux termes de la Loi de l’impôt si le Fonds d’infrastructures détenait ces placements du
portefeuille directement. De plus, il est présumé que le Fonds d’infrastructures (ainsi que toute personne ou
société en commandite ayant un lien de dépendance avec le Fonds d’infrastructures) détiendra au moins 10 % de
la juste valeur marchande des participations dans une fiducie non canadienne.
Le présent résumé ne s’applique pas à un porteur de parts qui a conclu ou conclura un « contrat dérivé à terme »,
au sens donné à cette expression dans les propositions fiscales figurant dans les propositions législatives
concernant la Loi de l’impôt sur le revenu, la Loi sur la taxe d’accise et le Règlement de l’impôt sur le revenu
publiées le 13 septembre 2013 relativement aux parts.
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La présente description est de nature générale seulement et ne décrit pas les incidences fiscales se
rapportant à la déductibilité de l’intérêt sur les fonds empruntés pour acquérir des parts. Elle ne se veut
pas ni ne devrait être interprétée comme étant un avis juridique ou fiscal à l’intention d’un souscripteur
éventuel et aucune déclaration n’est formulée concernant les incidences fiscales pour un souscripteur. Les
souscripteurs éventuels devraient consulter leurs propres conseillers fiscaux pour obtenir des conseils au
sujet des incidences fiscales, pour eux, d’un placement proposé dans le Fonds d’infrastructures compte
tenu de leur situation personnelle.
Imposition du Fonds d’infrastructures
En date des présentes, le Fonds d’infrastructures n’est pas et ne devrait pas être une fiducie de fonds commun de
placement au sens de la Loi de l’impôt. Il est présumé qu’en aucun temps les « institutions financières » (au sens
de l’article 142.2 de la Loi de l’impôt) détiendront plus de 50 % de la juste valeur marchande de toutes les parts.
Si des institutions financières détenaient plus de 50 % de la juste valeur marchande de toutes les parts, aux
termes de la Loi de l’impôt, le Fonds d’infrastructures, au cours de toute période au cours de laquelle il n’est pas
une fiducie de fonds commun de placement, serait notamment assujetti aux règles sur les « biens évalués à la
valeur du marché » sur ses « biens évalués à la valeur du marché » qui donneraient lieu à la réalisation par le
Fonds d’infrastructures d’un revenu ordinaire ou de pertes ordinaires en opposition à des gains en capital ou à
des pertes en capital, sur ces biens sur une base annuelle peu importe si le Fonds d’infrastructures a réellement
aliéné ces biens au cours de l’année.
En règle générale, le Fonds d’infrastructures ne sera pas assujetti à l’impôt en vertu de la partie I de la Loi de
l’impôt à l’égard de son revenu net ou des gains en capital réalisés nets pour chaque année d’imposition dans la
mesure où ce revenu net ou ces gains en capital réalisés nets sont payés ou payables dans l’année aux porteurs
de parts du Fonds d’infrastructures. Comme il est mentionné à la rubrique « Distributions », le Fonds
d’infrastructures distribuera au plus tard le 31 décembre de chaque année une partie de son revenu net et des
gains en capital réalisés nets qui n’ont pas été déjà distribués de sorte que le Fonds d’infrastructures ne sera pas
imposé en vertu de la partie I de la Loi de l’impôt. Pour les années d’imposition pendant lesquelles le Fonds
d’infrastructures n’est pas une fiducie de fonds commun de placement aux termes de la Loi de l’impôt, il peut
dans certaines circonstances être assujetti à un impôt minimum de remplacement, même si la totalité de son
revenu net et de ses gains en capital réalisés nets est payée ou payable à ses porteurs de parts.
Aux fins de l’application de la Loi de l’impôt, tous les montants (y compris le coût, le prix de base rajusté et le
produit de disposition) doivent être calculés en dollars canadiens. Les montants exprimés dans une monnaie
étrangère doivent être convertis en dollars canadiens en fonction du taux de change communiqué par la Banque
du Canada à midi le jour durant lequel le montant est créé pour la première fois, ou au moyen de tout autre taux
de change acceptable pour l’ARC. Par conséquent, le montant du revenu et des gains réalisés par le Fonds
d’infrastructures, de même que le montant des pertes qu’il subit, peut être touché par les fluctuations du taux de
change entre ces devises et le dollar canadien.
Si le Fonds d’infrastructures devient associé dans une société en commandite, celui-ci sera tenu d’inclure, dans
le calcul de ses revenus et de ses pertes aux fins de l’impôt, sous réserve des règles relatives à la « fraction à
risques » qui s’appliqueraient si le Fonds était un commanditaire d’une société en commandite, sa quote-part du
revenu ou de la perte de la société en commandite pour chaque période fiscale de la société en commandite, et
ce, peu importe si le Fonds a reçu ou recevra une distribution de la société en commandite.
Le Fonds effectuera des placements dans d’autres pays que le Canada. Dans certains cas, la Loi de l’impôt exige
qu’un résident du Canada comptabilise le revenu qui est assujetti à l’impôt au Canada même si ce revenu n’est
pas encore reçu par le Fonds d’infrastructures. Ces règles pourraient s’appliquer si une société qui n’est pas un
résident du Canada est assimilée à une « société étrangère affiliée contrôlée » du Fonds d’infrastructures et
gagne un revenu qui est assimilé à un « revenu étranger accumulé » aux termes de la Loi de l’impôt.
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Le Fonds d’infrastructures sera tenu, pour chaque année d’imposition, d’inclure dans son revenu aux fins de
l’impôt tous les dividendes reçus (ou réputés avoir été reçus) par celui-ci au cours de cette année à l’égard de
tout titre de son portefeuille. Les distributions et les affectations de certains revenus et gains en capital provenant
de « fiducies intermédiaires de placement déterminées » et de « sociétés de personnes intermédiaires de
placement déterminées » (au sens de la Loi de l’impôt) reçues par le Fonds d’infrastructures seront réputées des
dividendes versés par des sociétés imposables canadiennes. En ce qui a trait aux titres de créance, y compris les
débentures convertibles, le Fonds d’infrastructures sera tenu, pour chaque année d’imposition, d’inclure dans
son revenu tous les intérêts cumulés (ou réputés avoir été cumulés) par celui-ci jusqu’à la fin de cette année (ou
jusqu’à la disposition des titres de créance au cours de l’année), ainsi que tous les intérêts qu’il peut recevoir ou
reçoit avant la fin de l’année, notamment à l’issue d’une conversion, d’un rachat ou d’un remboursement à
l’échéance, sauf dans la mesure où de tels intérêts ont été inclus dans le calcul de son revenu pour une année
d’imposition antérieure et à l’exclusion de tout intérêt qui court avant la date d’acquisition du titre de créance
par le Fonds d’infrastructures.
À la disposition réelle ou réputée d’un titre inclus dans son portefeuille, le Fonds d’infrastructures réalisera un
gain en capital (ou subira une perte en capital) dans la mesure où le produit de disposition, déduction faite de
tous frais de disposition, est supérieur (ou inférieur) au prix de base rajusté de ce titre, à moins que le Fonds
d’infrastructures soit considéré comme négociant des titres ou exploitant une entreprise qui achète ou vend des
titres, ou que le Fonds d’infrastructures ait acquis le titre dans le cadre d’une ou de plusieurs opérations
comportant un risque ou d’une affaire de caractère commercial. Dans de telles circonstances, le Fonds
d’infrastructures réalisera un revenu ordinaire (ou subira une perte ordinaire). Si le Fonds d’infrastructures
acquiert ses titres de portefeuille dans le but de recevoir des distributions ou d’autres revenus sur ces titres, il
peut adopter la position selon laquelle les gains réalisés et les pertes subies à la disposition de ces titres
constituent des gains en capital et des pertes en capital. Les gains ou les pertes à l’égard des opérations de
couverture du risque de change conclues relativement aux titres du portefeuille du Fonds d’infrastructures
constitueront probablement des gains en capital et des pertes en capital pour le Fonds d’infrastructures si ces
titres sont des immobilisations pour le Fonds d’infrastructures. Les gains et les pertes à l’égard d’autres
instruments dérivés pourront habituellement être traités par le Fonds d’infrastructures à titre de revenu.
Le Fonds d’infrastructures obtiendra un revenu ou réalisera des gains à partir de placements effectués dans des
pays autres que le Canada et, par conséquent, peut être tenu de payer de l’impôt sur le revenu ou sur les
bénéfices à de tels pays. Le Fonds d’infrastructures peut attribuer à un porteur de parts une tranche de son
revenu de source étrangère pouvant raisonnablement être considéré faire partie du revenu du Fonds
d’infrastructures distribué à ce porteur de parts, de sorte que ce revenu et une partie de l’impôt étranger payé par
le Fonds d’infrastructures puissent être considérés comme un revenu de source étrangère du porteur de parts et
un impôt étranger qu’il a payé aux termes de la Loi de l’impôt portant sur les crédits pour impôt étranger. Le
montant de tout crédit pour impôt étranger disponible changera selon que le Fonds d’infrastructures est
considéré ou non avoir payé de « l’impôt sur le revenu tiré d’une entreprise » ou de « l’impôt sur le revenu ne
provenant pas d’une entreprise », au sens de la Loi de l’impôt. Si l’impôt étranger constitue de l’impôt sur le
revenu ne provenant pas d’une entreprise payé par le Fonds d’infrastructures, le crédit pour impôt étranger ne
peut être réclamé que si l’impôt étranger payé ne dépasse pas 15 % du montant compris dans le revenu du Fonds
d’infrastructures provenant des placements, et qu’il n’a pas été déduit dans le calcul du revenu du Fonds
d’infrastructures. Si cet impôt étranger excède 15 % du montant inclus dans le revenu du Fonds d’infrastructures
tiré de ces placements, l’excédent peut généralement être déduit par le Fonds d’infrastructures dans le calcul de
son revenu net aux fins de la Loi de l’impôt.
Pour une année d’imposition au cours de laquelle le Fonds d’infrastructures n’a pas qualité de fiducie de fonds
commun de placement aux termes de la Loi de l’impôt, le montant des distributions des gains en capital réalisés
nets versés par le Fonds d’infrastructures aux porteurs de parts dans l’année d’imposition et, par conséquent, le
montant devant être inclus dans le revenu des porteurs de parts du Fonds d’infrastructures, pourraient excéder le
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montant des distributions des gains en capital réalisés nets qu’il serait par ailleurs obligatoire d’effectuer si le
Fonds d’infrastructures avait eu qualité de fiducie de fonds commun de placement.
Pour les années d’imposition au cours desquelles le Fonds d’infrastructures n’est pas une fiducie de fonds
communs de placement aux termes de la Loi de l’impôt, le Fonds d’infrastructures sera redevable d’un impôt
spécial en vertu de la Partie XII.2 de la Loi de l’impôt si ses porteurs de parts comprennent des « bénéficiaires
étrangers ou assimilés » et qu’ils ont un « revenu de distribution ». Si le Fonds d’infrastructures a un
« bénéficiaire étranger ou assimilé » (ce qui comprend un non-résident du Canada, certaines fiducies et certaines
personnes exemptées d’impôt) et affiche un « revenu de distribution » (ce qui comprend les gains en capital
réalisés sur la disposition des « biens canadiens imposables » et un revenu tiré d’une entreprise exploitée au
Canada), le Fonds d’infrastructures sera imposé en vertu de la Partie XII.2 sur ce revenu de distribution. L’impôt
de la Partie XII.2 est déductible aux fins du calcul du revenu d’un porteur de parts aux fins de la Loi de l’impôt.
Les pertes subies par le Fonds d’infrastructures ne peuvent être attribuées aux porteurs de parts, mais elles
peuvent être déduites par le Fonds d’infrastructures au cours d’années futures conformément à la Loi de l’impôt
et sous réserve de l’application possible des propositions de modification de 2003 abordées ci-après. Le
31 octobre 2013, le ministère des Finances (Canada) a diffusé des propositions aux fins de consultations
publiques au sujet de la déductibilité de l’intérêt et d’autres dépenses (les « propositions de modification
de 2003 »). Les propositions de modification de 2003 avançaient la possibilité que la Loi de l’impôt soit
modifiée en vue de prévoir, pour les années d’imposition après 2004, qu’il soit raisonnable de s’attendre à ce
que le contribuable réalise un « bénéfice cumulatif » (établi sans égard aux gains en capital) d’une entreprise ou
d’un bien pour subir une perte découlant de l’entreprise ou du bien aux fins de l’impôt fédéral. Dans le budget
fédéral du 23 février 2005, le ministère des Finances avait indiqué qu’il réagirait aux préoccupations soulevées à
l’égard des propositions de modification de 2003 en proposant une initiative fiscale plus modeste, qu’il
diffuserait ultérieurement aux fins de consultations publiques. Aucune proposition législative de ce genre n’a
encore été publiée. Si ces propositions devaient être adoptées et devaient permettre de refuser des déductions de
pertes qui permettraient autrement de réduire le revenu imposable du Fonds d’infrastructures, le rendement
après impôts qui peut être versé aux porteurs de parts serait réduit en conséquence.
La distribution par le Fonds d’infrastructures de ses biens dans le cadre d’un rachat de parts en nature sera
traitée comme une disposition par le Fonds d’infrastructures des biens ainsi distribués pour un produit de
disposition correspondant à leur juste valeur marchande. En présumant que de tels biens sont détenus à titre
d’immobilisations, le Fonds d’infrastructures réalisera un gain en capital (ou subira une perte en capital).
Imposition des porteurs de parts
Les porteurs de parts devront inclure dans le calcul de leur revenu pour une année d’imposition, en dollars
canadiens, le revenu net et la tranche des gains en capital réalisés nets du Fonds d’infrastructures, payés ou
payables aux porteurs de parts au cours de l’année d’imposition, que ce revenu ou ces gains en capital aient été
versés au comptant ou réinvestis dans des parts supplémentaires du Fonds d’infrastructures.
La valeur liquidative par part de la série du Fonds d’infrastructures tiendra compte de tout revenu et de tout gain
du Fonds d’infrastructures qui s’est accumulé ou qui a été réalisé, mais qui n’est pas payable au moment de
l’acquisition des parts du Fonds d’infrastructures. Par conséquent, la personne qui souscrit des parts peut être
tenue de payer de l’impôt sur sa quote-part du revenu et des gains du Fonds d’infrastructures qui se sont
accumulés ou qui ont été réalisés avant l’acquisition des parts.
Le revenu de source étrangère, les dividendes imposables versés par des sociétés canadiennes imposables et les
gains en capital imposables du Fonds d’infrastructures (dans tous les cas, désignés comme tels par le Fonds
d’infrastructures) conserveront leur nature fiscale entre les mains des porteurs de parts du Fonds
d’infrastructures aux fins de l’impôt sur le revenu. Lorsque le revenu de source étrangère du Fonds
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d’infrastructures aura été ainsi désigné, les porteurs de parts du Fonds d’infrastructures seront généralement
réputés avoir payé, aux fins du crédit pour impôt étranger, leur quote-part des impôts étrangers payés par le
Fonds d’infrastructures sur ce revenu. Dans la mesure où des sommes reçues du Fonds d’infrastructures par un
porteur de parts qui est un particulier sont attribuées à titre de dividendes imposables de sociétés canadiennes
imposables, les règles sur la majoration et le crédit d’impôt pour dividendes s’appliqueront, y compris les règles
prévoyant le crédit d’impôt pour dividendes bonifié à l’égard des « dividendes déterminés » attribués à des
porteurs de parts.
Pour l’application de la Loi de l’impôt, les pertes du Fonds d’infrastructures ne peuvent pas être attribuées à un
porteur de parts ni être traitées comme une perte d’un porteur de parts.
Toutes les distributions versées par Fonds d’infrastructures à un porteur de parts (autres que le produit de
disposition versé au titre de l’ensemble ou d’une partie des parts du porteur de parts) viendront réduire le prix de
base rajusté des parts du porteur de parts, sauf dans la mesure où une telle distribution est comprise dans le
revenu du porteur de parts ou constitue la partie non imposable d’un gain en capital du Fonds d’infrastructures
(désignée comme telle par le Fonds d’infrastructures). Le porteur de parts réalisera un gain en capital dans la
mesure où la réduction du prix de base rajusté des parts du porteur de parts donnerait un montant négatif.
Conformément à la convention de fiducie, pour calculer les sommes payables aux porteurs de parts, le
gestionnaire, ou une entité désignée ou nommée par le gestionnaire, pourra effectuer des attributions à un
porteur de parts ayant fait racheter une part du Fonds d’infrastructures pendant l’année d’imposition du Fonds
d’infrastructures.
À la disposition d’une part, y compris un rachat, le porteur de parts du Fonds d’infrastructures réalisera un gain
en capital (ou subira une perte en capital) dans la mesure où le produit de disposition de la part est supérieur (ou
est inférieur) à la somme du prix de base rajusté de la part et des frais de disposition. Le produit de disposition
ne comprendra pas de montant payable par le Fonds d’infrastructures devant par ailleurs être inclus dans le
revenu du porteur de parts.
La moitié d’un gain en capital (un « gain en capital imposable ») sera prise en compte dans le calcul du revenu
du porteur de parts, et la moitié d’une perte en capital subie (une « perte en capital déductible ») peut être
portée en déduction des gains en capital imposables conformément aux dispositions de la Loi de l’impôt.
Aux fins d’établir le prix de base rajusté pour un porteur de parts, au moment de l’acquisition d’une part, soit
aux termes d’un réinvestissement de distributions ou autrement, la moyenne du coût des parts nouvellement
acquises et du prix de base rajusté de l’ensemble des parts que le porteur de parts détient à titre
d’immobilisations avant l’acquisition sera établie. Le coût pour le porteur de parts des parts reçues au moment
du réinvestissement d’une distribution correspondra au montant de la distribution réinvestie.
En termes généraux, le revenu net du Fonds d’infrastructures payé ou payable au porteur de parts qui est attribué
sous forme de dividendes imposables provenant de sociétés canadiennes imposables ou à titre de gains en capital
imposables nets, ainsi que les gains en capital réalisés par un porteur de parts à la disposition de parts, peuvent
augmenter l’impôt minimum de remplacement payable par le porteur de parts aux termes de la Loi de l’impôt.
Incidences fiscales du transfert du Fonds du marché monétaire vers le Fonds d’infrastructures
Les porteurs de parts doivent savoir que le rachat de leurs parts du Fonds du marché monétaire en vue d’un
placement par le gestionnaire dans le Fonds d’infrastructures au moment du transfert constituera une disposition
des parts aux fins de l’impôt.
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À la disposition réelle ou réputée d’une part du Fonds du marché monétaire, le porteur de parts du Fonds du
marché monétaire réalisera un gain en capital (ou subira une perte en capital) dans la mesure où le produit de
disposition est supérieur (ou est inférieur) à la somme du prix de base rajusté de la part et des frais raisonnables
de disposition. Aux fins d’établir le prix de base rajusté des parts du Fonds du marché monétaire pour un porteur
de parts en particulier, la moyenne du coût des parts nouvellement acquises et du prix de base rajusté de toutes
les autres parts du Fonds du marché monétaire que le porteur de parts détient à titre d’immobilisations avant
l’acquisition sera établie. La moitié de tout gain en capital réalisé à la disposition de parts du Fonds du marché
monétaire sera incluse dans le revenu du porteur de parts, et la moitié de la perte en capital subie pourra être
déduite des gains en capital imposables du porteur de parts pour l’année. Les pertes en capital déductibles pour
une année d’imposition qui excèdent les gains en capital imposables peuvent être reportées rétrospectivement et
déduites des gains en capital imposables de l’une des trois années d’imposition précédentes ou être reportées
prospectivement et déduites des gains en capital imposables de toute année d’imposition subséquente,
conformément aux dispositions de la Loi de l’impôt.
Incidences fiscales de la politique en matière de distributions du Fonds d’infrastructures
Lorsqu’un porteur de parts souscrit des parts, une partie du prix payé peut correspondre à un revenu ou à des
gains en capital accumulés ou réalisés dans le Fonds d’infrastructures avant cette souscription. Lorsque ces
montants sont payés ou payables par le Fonds d’infrastructures à ce porteur de parts à titre de distribution, ils
doivent être inclus dans le revenu du porteur de parts aux fins de l’impôt sous réserve des dispositions de la Loi
de l’impôt, même si ces montants pourraient avoir été gagnés ou accumulés avant la souscription et pris en
compte dans le prix de souscription, ce qui pourrait notamment être le cas si les parts sont souscrites vers la fin
de l’année.
ADMISSIBILITÉ AUX FINS DE PLACEMENT
Puisque le Fonds d’infrastructures n’est ni une fiducie de fonds commun de placement ni un placement
enregistré aux fins de la Loi de l’impôt, les parts ne sont pas des placements admissibles pour les fiducies régies
par des régimes enregistrés d’épargne-retraite, des fonds enregistrés de revenu de retraite, des régimes de
participation différée aux bénéfices, des régimes enregistrés d’épargne-invalidité, des régimes enregistrés
d’épargne-études et des comptes d’épargne libre d’impôt, au sens de la Loi de l’impôt, et ne devraient être
détenues dans de tels régimes.
FACTEURS DE RISQUE
Le texte qui suit sur les facteurs de risque n’est pas censé être une explication complète de tous les risques
que comporte une souscription de parts. Les investisseurs éventuels devraient lire intégralement la
présente notice d’offre et consulter leurs conseillers juridiques ou autres conseillers professionnels avant
de décider d’investir dans les parts.
Risques associés à un placement dans le Fonds d’infrastructures
Un placement dans le Fonds d’infrastructures comporte plusieurs risques, dont certains sont exposés aux
présentes.
Placement spéculatif
Un placement dans le Fonds d’infrastructures peut être considéré comme spéculatif et ne se substitue pas à un
programme de placement complet. Seules les personnes qui, sur le plan financier, sont en mesure de conserver
leur placement et qui peuvent tolérer le risque d’une perte associé à un placement dans le Fonds
d’infrastructures devraient envisager de souscrire des parts. Les investisseurs devraient examiner attentivement
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les objectifs retenus par le Fonds d’infrastructures et les stratégies de placement qu’il applique, ainsi qu’ils sont
exposés aux présentes, afin de se familiariser avec les risques associés à un placement dans le Fonds
d’infrastructures.
Rien ne garantit que le Fonds d’infrastructures sera en mesure d’atteindre son objectif de placement.
Risque de placement général
La valeur liquidative par part de la série peut varier directement en fonction de la valeur au marché et du
rendement du portefeuille de placement du Fonds d’infrastructures. Rien ne garantit que le Fonds
d’infrastructures ne subira pas de perte ni qu’il affichera un rendement.
Frais
Le Fonds d’infrastructures est tenu d’acquitter des frais, des honoraires, des commissions de courtage et des
frais et honoraires juridiques et comptables, ainsi que des frais de dépôt et d’autres frais, qu’il réalise ou non un
profit.
Antécédents d’exploitation limités du Fonds d’infrastructures
Bien que les personnes participant à la gestion du Fonds d’infrastructures et les fournisseurs de services du
Fonds d’infrastructures possèdent une vaste expérience dans leur domaine de spécialisation respectif, le Fonds
d’infrastructures a des antécédents d’exploitation ou de rendement limités en fonction desquels les investisseurs
éventuels peuvent évaluer le rendement probable du Fonds d’infrastructures. Le gestionnaire gère des actifs
depuis le 1er mars 2010 au moyen de la même stratégie de placement qu’utilise le Fonds d’infrastructures. Les
investisseurs devraient savoir que le rendement antérieur obtenu par les personnes chargées de la gestion des
placements du Fonds d’infrastructures ne devrait pas être considéré comme une indication des résultats futurs.
Il ne s’agit pas d’un organisme de placement collectif s’adressant au public
Le Fonds d’infrastructures n’est pas assujetti aux restrictions imposées aux organismes de placement collectif
dont les titres sont offerts au public aux termes d’un prospectus simplifié en vue d’assurer la diversification et la
liquidité du portefeuille du Fonds d’infrastructures.
Capacité limitée à liquider un placement
Il n’y a aucun marché officiel pour les parts et il n’est pas prévu qu’il s’en formera un. Le présent placement de
parts n’est pas visé au moyen d’un prospectus et, par conséquent, la revente des parts fait l’objet de restrictions
aux termes des lois sur les valeurs mobilières applicables. En outre, les parts ne peuvent être cédées, grevées
d’une charge, mises en gage, hypothéquées ou par ailleurs transférées, sauf avec le consentement préalable écrit
du gestionnaire, consentement qu’il peut refuser à sa seule et absolue appréciation. Par conséquent, il est
possible que les porteurs de parts puissent ne pas être en mesure de revendre leurs parts autrement qu’au moyen
d’une demande de rachat de leurs parts au cours d’un jour d’évaluation, lequel rachat est sous réserve des
restrictions décrites à la rubrique « Rachat de parts ». Les porteurs de parts pourraient ne pas être en mesure de
liquider leur placement en temps opportun. Par conséquent, un placement dans les parts ne convient qu’aux
investisseurs avertis qui n’exigent pas la liquidité de leur placement et qui sont en mesure de tolérer le risque
financier d’un placement pendant une période prolongée.
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Évaluation des placements du Fonds d’infrastructures
Bien que le Fonds d’infrastructures soit vérifié de façon indépendante par les auditeurs tous les ans afin
d’assurer une fixation des prix aussi équitable et précise que possible, l’évaluation des titres en portefeuille et
des autres placements peut comporter un certain degré d’incertitude et des décisions discrétionnaires et, si de
telles évaluations se révèlent incorrectes, la valeur liquidative du Fonds d’infrastructures et la valeur liquidative
par part de la série pourraient être gravement touchées. Les renseignements indépendants sur les prix pourraient
parfois ne pas être disponibles à l’égard de certains des titres et autres placements du Fonds d’infrastructures.
Les décisions concernant l’évaluation seront prises de bonne foi conformément à la convention de fiducie.
Le portefeuille du Fonds d’infrastructures comprendra des actifs qui, par leur nature, pourraient être très
difficiles à évaluer avec précision. Dans la mesure où la valeur attribuée par le Fonds d’infrastructures à un tel
placement diffère de la valeur réelle, la valeur liquidative par part de la série peut être sous-estimée ou
surestimée, le cas échéant. Compte tenu de ce qui précède, il se peut qu’un porteur de parts qui fait racheter la
totalité ou une partie de ses parts alors que le Fonds d’infrastructures détient ces placements reçoive un montant
inférieur à ce qu’il aurait par ailleurs reçu si la valeur réelle de ce placement avait été supérieure à la valeur que
lui a attribuée le Fonds d’infrastructures. Dans un même ordre d’idées, il se peut qu’un tel porteur de parts
puisse, de fait, recevoir un montant supérieur si la valeur réelle de tels placements est inférieure à la valeur que
lui a attribuée le Fonds d’infrastructures à l’égard d’un rachat. En outre, un placement dans le Fonds
d’infrastructures par un nouvel investisseur (ou un placement supplémentaire par un porteur de parts existant)
pourrait diluer la valeur des placements pour les autres porteurs de parts si la valeur réelle de ces placements est
supérieure à la valeur que lui a attribuée le Fonds d’infrastructures. De plus, il se peut qu’un nouveau porteur de
parts (ou un porteur de parts existant qui fait un placement supplémentaire) paye plus qu’il ne le devrait si la
valeur réelle de ces placements est inférieure à la valeur que lui a attribuée le Fonds d’infrastructures. Le
gestionnaire n’a pas l’intention de rajuster la valeur liquidative du Fonds d’infrastructures de façon rétroactive.
Le Fonds d’infrastructures n’évaluera pas de façon indépendante les titres des Fonds sous-jacents (ni d’aucun
autre fonds) qu’il acquiert. Le Fonds d’infrastructures se fondera plutôt sur l’évaluation de ces titres établie par
le gestionnaire de placements, le commandité ou le fiduciaire de ces fonds.
L’évaluation des actifs du Fonds d’infrastructures afin d’établir les prix de souscription et de rachat de parts,
ainsi que le calcul des frais applicables, pourraient ne pas être conformes aux Normes internationales
d’information financière (IFRS), mais seront généralement conformes à la pratique suivie au sein du secteur.
Les porteurs de parts n’ont aucun droit de participer à la gestion
Les porteurs de parts n’ont pas le droit de participer à la gestion ou au contrôle du Fonds d’infrastructures ni à
ses activités. Les porteurs de parts n’ont aucun droit de regard sur les opérations du Fonds d’infrastructures. Le
succès ou l’échec du Fonds d’infrastructures dépendra en fin de compte du placement indirect des actifs du
Fonds d’infrastructures par le gestionnaire avec lequel les porteurs de parts n’entretiennent aucun rapport direct.
Confiance envers le gestionnaire et les gestionnaires des Fonds sous-jacents
Le Fonds d’infrastructures dépendra de la capacité du gestionnaire à le gérer de façon dynamique et de la
capacité des gestionnaires des Fonds sous-jacents à les gérer. Rien ne garantit qu’il sera possible de trouver un
remplaçant acceptable pour le gestionnaire ou les gestionnaires des Fonds sous-jacents si ceux-ci cessent d’agir
à ce titre.
La révocation du gestionnaire entraînera la dissolution du Fonds d’infrastructures si aucun remplaçant n’est
nommé. En outre, une telle situation exposera les investisseurs aux risques que comportent les nouvelles
ententes de gestion qui peuvent être conclues.
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Défaut se rapportant en un engagement de capitaux dans un Fonds sous-jacent
En ce qui concerne ses placements dans un Fonds sous-jacent, le Fonds d’infrastructures devra probablement
prendre des engagements de capitaux. Aux termes des modalités du placement dans les Fonds sous-jacents, le
Fonds d’infrastructures pourrait ne pas être en mesure d’annuler, de réduire ou autrement de modifier ses
engagements de capitaux. Le défaut par le Fonds d’infrastructures d’honorer, en totalité, un apport de capital
prévu après qu’un avis de prélèvement est remis par le Fonds sous-jacent exposera le Fonds d’infrastructures à
certaines mesures qui pourraient comprendre, notamment tout ce qui suit :

le retrait de certains droits de l’investisseur du Fonds d’infrastructures, y compris le droit de vote sur
des questions exigeant le consentement des investisseurs et le droit d’injecter d’autres capitaux,
jusqu’à ce que tous les montants en défaut et tout l’intérêt accumulé sur ceux-ci aient été acquittés
en totalité par le Fonds d’infrastructures;

l’imposition de frais d’intérêt à un taux devant être fourni selon les modalités du Fonds sous-jacent
sur les montants en défaut;

l’affectation de montants autrement distribuables au Fonds d’infrastructures en règlement de tous
les montants payables par le Fonds d’infrastructures;

l’obligation de racheter ou de vendre par le Fonds d’infrastructures ses placements dans le Fonds
sous-jacent à un prix devant être actualisé au taux prévu dans la documentation du Fonds
sous-jacent (dont le produit d’une telle vente ou d’un tel rachat serait affecté d’abord au paiement de
tous les montants en défaut).
Un tel défaut par le Fonds d’infrastructures pourrait avoir une incidence défavorable importante sur la valeur des
parts du Fonds d’infrastructures.
Dépendance du gestionnaire envers le personnel clé
Le gestionnaire dépendra, pour une large part, des services d’un nombre limité de particuliers quant à
l’administration des activités du Fonds d’infrastructures. La perte de ceux-ci pour une raison quelconque
pourrait porter atteinte à la capacité du gestionnaire de mener ses activités de gestion pour le compte du Fonds
d’infrastructures.
Risque propre à la série
Puisque le Fonds d’infrastructures peut avoir plusieurs séries de parts, des frais de la série comme les frais de
gestion et la rémunération liée au rendement qui sont précisément attribuables à la série visée seront imputés à
l’égard de chaque série, comme série distincte. Toutefois, le gestionnaire répartira généralement les autres frais
du Fonds d’infrastructures entre les séries de parts d’une façon équitable et le créancier du Fonds
d’infrastructures peut tenter de faire valoir sa réclamation à l’encontre des actifs du Fonds d’infrastructures dans
son ensemble même si la réclamation ne concerne qu’une série de parts particulière.
Obligations d’indemnisation éventuelle
Dans certaines circonstances, le Fonds d’infrastructures peut être tenu à des obligations d’indemnisation
importantes en faveur du fiduciaire, du gestionnaire et d’autres fournisseurs de services du Fonds
d’infrastructures ou de certaines parties qui leur sont reliées. Le Fonds d’infrastructures ne souscrira aucune
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assurance pour couvrir ces obligations éventuelles et, à la connaissance du gestionnaire, aucune des parties
précédentes ne sera assurée de recouvrer les pertes pour lesquelles le Fonds d’infrastructures a convenu de les
indemniser. Toute indemnisation versée par le Fonds d’infrastructures aura pour effet de réduire la valeur
liquidative de ce Fonds d’infrastructures et, par extension, la valeur liquidative par part de la série.
Absence d’experts indépendants représentant les porteurs de parts
Le Fonds d’infrastructures et le gestionnaire ont consulté un seul conseiller juridique en ce qui concerne la
création et les modalités du Fonds d’infrastructures et le placement des parts. Toutefois, les porteurs de parts
n’ont pas eu de représentant indépendant. Par conséquent, dans la mesure où le Fonds d’infrastructures, les
porteurs de parts et le présent placement auraient pu bénéficier d’un autre examen indépendant, cet avantage ne
leur sera pas offert. Chaque investisseur éventuel devrait consulter ses propres conseillers juridiques, fiscaux et
financiers afin de déterminer si la souscription de parts est souhaitable pour eux et si pareil placement leur
convient.
Aucune participation d’un agent de placement non membre du même groupe
Aucun agent de placement externe faisant partie du groupe du gestionnaire n’a examiné les modalités du présent
placement, la structure du Fonds d’infrastructures ou les antécédents du gestionnaire, ni n’a procédé à une
enquête à ces titres.
Erreurs de négociation
Dans le cadre de l’exécution des responsabilités liées aux opérations et aux placements pour le compte du Fonds
d’infrastructures, les membres du personnel du gestionnaire peuvent faire des « erreurs de négociation », c’est-àdire des erreurs d’exécution des directives particulières à une opération. Des exemples de ces erreurs
comprennent i) l’achat ou la vente d’un actif de placement à un prix ou selon un volume qui est incompatible
avec des directives particulières à une opération dictées par une stratégie déterminée ou ii) l’achat plutôt que la
vente d’un actif de placement déterminé (et vice versa). Les erreurs de négociation sont un facteur intrinsèque de
tout processus de placement complexe et surviendront malgré toutes les précautions qui sont prises ou les
procédures spéciales qui sont instaurées pour les empêcher. Par conséquent, les erreurs de négociation sont à
distinguer des erreurs de jugement, de la diligence raisonnable ainsi que d’autres facteurs qui font en sorte
qu’une directive de négociation précise est donnée, ainsi que des opérations non autorisées ou d’autres gestes
inappropriés des membres du personnel du gestionnaire. Par conséquent, le gestionnaire (à moins d’en décider
autrement) considérera toutes les erreurs de négociation (y compris celles qui entraînent des pertes et celles qui
entraînent des gains) comme étant faites pour le compte du Fonds d’infrastructures, à moins qu’elles ne résultent
d’un geste du gestionnaire qui est incompatible avec sa norme de soin.
Incidence défavorable éventuelle de la réglementation des fonds de placement alternatif
Le Fonds d’infrastructures pourrait être considéré comme un fonds de placement alternatif. Le régime de
réglementation des fonds de placement alternatif évolue, et les changements qui y sont apportés pourraient avoir
une incidence défavorable sur le Fonds d’infrastructures. Si les organismes de réglementation adoptent des
politiques de surveillance réglementaire à l’égard des fonds de placement alternatif qui suscitent des frais de
conformité, d’opération, de communication de l’information ou d’autres frais pour les fonds de placement
alternatif, ces frais pourraient avoir une incidence défavorable sur le rendement du Fonds d’infrastructures. En
outre, le régime réglementaire ou fiscal applicable aux instruments dérivés et instruments connexes évolue et
peut faire l’objet de modification par le gouvernement ou entraîner une action en justice qui pourrait avoir une
incidence défavorable sur la valeur des placements que détient le Fonds d’infrastructures. L’effet d’une
modification future d’ordre réglementaire ou fiscal du portefeuille du Fonds d’infrastructures est impossible à
prédire.
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Dissolution anticipée
Advenant la dissolution anticipée du Fonds d’infrastructures, le Fonds d’infrastructures pourrait distribuer en
proportion aux porteurs de parts leur participation dans les actifs du Fonds d’infrastructures qu’il peut distribuer,
sous réserve des droits du fiduciaire ou du gestionnaire de conserver des sommes d’argent pour acquitter leurs
frais. Certains des actifs que détient le Fonds d’infrastructures peuvent être non liquides et pourraient avoir une
valeur marchande minime ou nulle. En outre, les titres que détient le Fonds d’infrastructures devraient être
vendus par le Fonds d’infrastructures ou distribués en nature aux porteurs de parts. Il est possible qu’au moment
d’une telle vente ou distribution, certains titres que détient le Fonds d’infrastructures puissent avoir une valeur
moindre que leur coût initial, provoquant ainsi une perte pour les porteurs de parts.
Risque associé aux placements du Fonds d’infrastructures
Les facteurs de risque suivants associés aux placements du Fonds d’infrastructures auront une incidence directe
ou indirecte sur les investisseurs du Fonds d’infrastructures.
Conjoncture économique et du marché
La conjoncture économique et du marché, comme les taux d’intérêt, la disponibilité du crédit, les taux
d’inflation, l’incertitude économique, les modifications des lois et la conjoncture politique nationale et
internationale peuvent avoir une incidence sur le succès des activités du Fonds d’infrastructures. Ces facteurs
peuvent perturber le niveau et la volatilité des cours et la liquidité des placements du Fonds d’infrastructures.
Une volatilité ou une illiquidité inattendue pourrait nuire à la rentabilité du Fonds d’infrastructures ou entraîner
des pertes.
Risque lié aux fonds de Fonds
Le Fonds d’infrastructures peut investir directement dans des structures d’accueil ou d’autres fonds de
placement ou obtenir une exposition à ceux-ci dans le cadre de sa stratégie de placement. Par conséquent, le
Fonds d’infrastructures est également assujetti aux risques de ces fonds sous-jacents.
Pour le risque se rapportant au placement prévu du Fonds d’infrastructures dans les Fonds Fiera Axium, veuillez
vous reporter à la notice d’information confidentielle jointe à la présente notice d’offre à l’Annexe B. Prenez
note que les investisseurs dans le Fonds d’infrastructures n’auront aucun droit aux termes de la notice
d’information confidentielle des Fonds Fiera Axium.
Risque lié à la concentration dans un secteur et au secteur des infrastructures
Le portefeuille du Fonds d’infrastructures sera investi dans des titres qui sont émis par des émetteurs dans le
secteur des infrastructures. Étant donné la concentration de l’exposition du Fonds d’infrastructures au secteur
des infrastructures, le Fonds d’infrastructures sera plus susceptible d’être exposé à des situations sur les plans de
l’économie ou de la réglementation défavorables à ce secteur qu’un placement du Fonds d’infrastructures qui
n’est pas concentré dans un seul secteur. Cela pourrait avoir une incidence défavorable sur la valeur des parts.
Les émetteurs de titres liés à des infrastructures, notamment les services publics et les sociétés participant à des
projets d’infrastructures, peuvent être exposés à divers facteurs qui pourraient avoir une incidence défavorable
sur leur activité et leur exploitation, y compris les taux d’intérêt élevés pratiqués dans le cadre des programmes
de construction d’immobilisations, un niveau élevé de levier, les coûts reliés à la réglementation
environnementale et à d’autres règlements, les effets d’un ralentissement économique, d’une capacité de surplus,
de la concurrence accrue des autres fournisseurs de services, l’incertitude entourant les coûts de l’énergie (entre
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autres choses), les effets des politiques de conservation de l’énergie et d’autres facteurs. Les émetteurs de titres
liés à des infrastructures peuvent être également touchés par tout ce qui suit :
a)
la réglementation des diverses autorités gouvernementales;
b)
la réglementation gouvernementale des taux imposés aux clients;
c)
l’interruption du service en raison d’événements liés à l’environnement, aux activités
d’exploitation ou d’autres événements;
d)
l’imposition de tarifs spéciaux et de modifications apportées aux lois de l’impôt, les politiques
réglementaires et aux normes comptables;
e)
l’évolution de l’humeur du marché envers les actifs d’infrastructure.
Le secteur des infrastructures présente également certaines caractéristiques qui suscitent certains risques plus
grands que dans d’autres secteurs. Ces risques peuvent être résumés de la façon suivante :
a)
Risque lié à la technologie. Ce risque survient lorsqu’un changement se produit dans la façon
dont un service ou un produit est livré rendant la technologie existante désuète. Bien que ce
risque soit faible dans le secteur des infrastructures compte tenu des coûts fixes considérables
engagés dans les actifs de construction et du fait que plusieurs technologies des infrastructures
soient bien établies, tout changement technologique qui se produit à moyen terme constitue une
menace à la rentabilité de l’émetteur de titres liés à des infrastructures. Si un tel changement se
produisait, il serait difficile de recycler les actifs devenus désuets.
b)
Risque lié à la région ou risque géographique. Ce risque se matérialise lorsque les actifs d’un
émetteur de titres liés à des infrastructures ne peuvent être déplacés. Si un tel événement devait
nuire d’une manière ou d’une autre au rendement des actifs d’un émetteur de titres liés à des
infrastructures dans le secteur géographique où l’émetteur exploite ces actifs, le rendement de
l’émetteur pourrait subir de sérieux contrecoups.
c)
Risque lié au débit. Les produits d’exploitation de plusieurs émetteurs de titres liés à des
infrastructures peuvent être fonction du nombre d’utilisateurs qui utilisent les produits ou les
services produits par les actifs des émetteurs de titres liés à des infrastructures. Toute fluctuation
dans le nombre d’utilisateurs pourrait avoir une incidence défavorable sur la rentabilité de
l’émetteur.
d)
Risque lié à un nouveau projet. Lorsque le Fonds d’infrastructures investit dans des émetteurs
participant à de nouveaux projets d’infrastructures, il existe un certain risque résiduel que le
projet ne se réalise pas selon le budget imparti, dans les délais prévus et conformément aux
devis convenus. Au cours de la phase de construction, les principaux risques comprennent : un
retard dans la réalisation projetée du projet et un retard qui en découle dans le commencement
des flux de trésorerie, une augmentation du capital nécessaire pour terminer les travaux de
construction; et l’insolvabilité de l’entrepreneur chef, d’un sous-traitant important et (ou) d’un
fournisseur clé d’équipement. Les coûts de construction peuvent dépasser les estimations pour
divers motifs, notamment une inexactitude dans les travaux d’ingénierie et la planification, des
coûts de main-d’œuvre et de construction supérieurs aux attentes et des problèmes non prévus
liés au démarrage du projet. Ces augmentations de coûts non prévus peuvent se traduire par une
augmentation des coûts du service de la dette et des fonds insuffisants pour terminer les travaux
de construction. Ces augmentations peuvent compromettre la capacité des propriétaires du
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projet d’honorer des taux d’intérêt plus élevés et les remboursements de capital découlant d’un
besoin supplémentaire d’endettement. Les retards dans la réalisation du projet peuvent entraîner
une augmentation des coûts totaux des travaux de construction du projet en raison de charges
d’intérêt capitalisées plus élevées et de dépenses supplémentaires de main-d’œuvre et de
matériaux et, par conséquent, d’une augmentation des coûts du service de la dette. Les retards
peuvent également avoir une incidence sur le flux prévu des produits d’exploitation tirés du
projet nécessaires pour acquitter les coûts du service de la dette durant la phase d’exploitation
prévue, les dépenses d’exploitation et de maintenance et les dommages-intérêts payés pour
retard de livraison.
Titres à revenu fixe
Le Fonds d’infrastructures peut investir dans des obligations ou d’autres titres à revenu fixe d’émetteurs
américains, canadiens et autres, y compris des obligations, des billets et débentures émis par des sociétés, des
titres d’emprunt émis ou garantis par le gouvernement fédéral du Canada ou des États-Unis ou le gouvernement
d’un État des États-Unis ou d’une province du Canada ou un organisme gouvernemental et le papier
commercial. Les titres à revenu fixe procurent un taux d’intérêt fixe ou variable. La valeur de titres à revenu fixe
dans lesquels le Fonds d’infrastructures investit variera en fonction des fluctuations des taux d’intérêt. En outre,
la valeur de certains titres à revenu fixe peut fluctuer en réaction aux perceptions quant à la solvabilité, à la
stabilité politique ou au bien-fondé des politiques économiques. Les titres à revenu fixe sont soumis au risque lié
à l’incapacité de l’émetteur d’acquitter des versements de capital et d’intérêt quant à ses obligations (c.-à-d. le
risque de crédit) ainsi qu’à la volatilité des cours attribuable à des facteurs comme la sensibilité aux taux
d’intérêt, la perception qu’a le marché de la solvabilité de l’émetteur et la liquidité générale du marché (c.-à-d. le
risque du marché). Si des placements à revenu fixe ne sont pas détenus jusqu’à leur échéance, le Fonds
d’infrastructures pourrait subir une perte au moment de la vente de tels titres.
Risque de change
Le placement dans les titres libellés dans une monnaie autre que les dollars canadiens subira l’influence des
modifications de la valeur du dollar canadien par rapport à la valeur de la monnaie dans laquelle le titre est
libellé. Ainsi, la valeur de titres que détient le Fonds d’infrastructures peut être supérieure ou inférieure en
fonction de leur sensibilité aux taux de change.
Risque associé à la contrepartie
Dans la mesure où une contrepartie avec laquelle ou par l’intermédiaire de laquelle le Fonds d’infrastructures se
livre à des opérations et auprès de laquelle il a des comptes n’effectue pas une distinction à l’égard des actifs du
Fonds d’infrastructures, le Fonds d’infrastructures sera susceptible de subir une perte si une telle personne est
insolvable. Même si les actifs du Fonds d’infrastructures sont gardés de façon distincte, rien ne garantit, s’il
survient une telle insolvabilité, que le Fonds d’infrastructures sera en mesure de recouvrer la totalité de ses
actifs.
Concurrence dans le secteur des placements non traditionnels
Le secteur des placements non traditionnels est fortement concurrentiel. Au cours des dernières années, il y a eu
une augmentation marquée du nombre des moyens de placement ainsi que du volume de capitaux qui y sont
investis, conçus afin de mettre en œuvre des stratégies de placement non traditionnelles ou « alternatives ». Les
investisseurs éventuels doivent comprendre que le Fonds d’infrastructures fait concurrence à d’autres
intervenants sur le marché qui pourraient disposer de ressources financières et autres grandement supérieures et
qui ont un meilleur accès aux occasions de placement que le Fonds d’infrastructures.
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Risque associé à un placement à l’étranger
Le Fonds d’infrastructures peut acquérir des titres étrangers. Un placement dans les titres étrangers comporte des
facteurs et des risques éventuels qui ne sont pas normalement associés à un placement dans les titres canadiens,
y compris l’instabilité de certains gouvernements étrangers, la possibilité d’expropriation, les restrictions quant à
l’utilisation ou au rapatriement de fonds ou d’autres actifs, des changements au sein de l’administration
gouvernementale ou de la politique économique ou monétaire (au Canada ou à l’étranger) ou un changement des
circonstances quant aux relations entre les nations. L’application des lois fiscales étrangères (p. ex., l’imposition
de retenues d’impôt sur les dividendes ou les versements d’intérêt) ou de taxes spoliatrices peut également
influencer les placements dans des titres étrangers. Un placement dans de tels titres peut entraîner des frais
supérieurs en raison des coûts qui doivent être engagés relativement à la conversion de diverses monnaies au
dollar canadien et parce que les courtages payés à l’extérieur du Canada peuvent être supérieurs à ceux payés au
Canada. Les marchés des valeurs mobilières à l’extérieur du Canada peuvent être également moins liquides, plus
volatils et faire l’objet d’une supervision gouvernementale moindre que ce n’est le cas au Canada. Le Fonds
d’infrastructures peut avoir plus de difficulté à intenter une action en justice appropriée devant les tribunaux à
l’extérieur du Canada. D’autres facteurs qui ne s’appliquent pas au Canada peuvent avoir une incidence sur les
placements dans les titres étrangers, y compris l’absence de normes uniformes en matière de comptabilité, de
vérification et de communication de l’information financière et les difficultés éventuelles à faire exécuter des
obligations contractuelles. Par conséquent, la valeur du Fonds d’infrastructures peut subir de plus fortes
fluctuations du fait de placements dans les titres étrangers que si le Fonds d’infrastructures limitait ses
placements à des titres canadiens.
Différence entre les cours affichés et les cours utilisables
De nombreux fonds calculent leur valeur liquidative en tenant compte d’indications reçues de courtiers.
Toutefois, il n’est pas inhabituel, particulièrement dans le cas de certains placements moins classiques, que les
prix affichés par les courtiers dans un but d’information soient très supérieurs aux prix selon lesquels les mêmes
courtiers souhaitent réellement conclure des opérations. Cet écart peut provoquer des perturbations majeures et
des baisses inattendues de la valeur liquidative lorsqu’un fonds est tenu de liquider une position qu’il a évaluée
en fonction des indications reçues de courtiers.
Risques associés aux techniques spéciales
Les techniques spéciales de placement auxquelles le gestionnaire pourrait avoir recours comportent de risques,
notamment ceux résumés ci-après.
Instruments financiers dérivés. Le Fonds d’infrastructures peut utiliser des instruments financiers dérivés, y
compris des options, des swaps, des contrats notionnels, des contrats sur écarts, des contrats à terme standardisés
et des contrats à terme de gré à gré et peut avoir recours à des techniques dérivées à des fins de couverture et à
d’autres fins de négociation, y compris afin d’obtenir l’avantage économique d’un placement dans une entité
sans effectuer un placement direct. Les risques que comportent de tels instruments et techniques, qui peuvent
être complexes, et qui peuvent obliger le Fonds d’infrastructures à avoir recours à ses actifs, comprennent : i) les
risques de crédit (la possibilité d’une perte découlant de l’omission de la contrepartie de s’acquitter de ses
obligations financières); ii) le risque associé au marché (les fluctuations défavorables du prix de l’actif financier
ou de la marchandise); iii) les risques juridiques (la qualification d’une opération ou la capacité juridique de la
partie à la conclure pourrait rendre le contrat financier inexécutable, et l’insolvabilité ou la faillite d’une
contrepartie pourrait empêcher l’exercice de droits contractuels exécutoires); iv) le risque associé aux opérations
(contrôles inadéquats, procédures déficientes, erreur humaine, panne de système ou fraude); v) le risque associé
à la documentation (le risque de perte résultant d’une documentation inadéquate); vi) le risque de non-liquidité
(le risque de perte créé par l’incapacité à mettre fin prématurément à l’instrument dérivé); vii) le risque associé
aux systèmes (le risque que des difficultés financières d’une institution ou d’une perturbation majeure du
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marché provoquent un préjudice financier incontrôlable au système financier); viii) le risque associé à la
concentration (le risque de perte provoqué par la concentration de risques étroitement associés, comme
l’exposition à un secteur particulier ou une exposition à une entité particulière); et ix) le risque associé au
règlement (le risque auquel est confrontée une partie à une opération lorsqu’elle a exécuté ses obligations aux
termes du contrat, mais n’a pas encore reçu une valeur de sa contrepartie).
Puisque de faibles dépôts de couverture sont habituellement requis dans le cas d’opérations, particulièrement
celles sur contrat à terme, les opérations sur contrat à terme du Fonds d’infrastructures peuvent être financées
par des emprunts importants et, par conséquent, une fluctuation relativement faible du prix d’un contrat à terme
peut entraîner une perte immédiate et significative pour le Fonds d’infrastructures. Les opérations sur contrat à
terme comportent également un risque supplémentaire associé au défaut éventuel de la chambre de
compensation et du courtier chargé de la compensation.
Bien que le Fonds d’infrastructures n’envisage actuellement pas d’effectuer des opérations sur des bourses de
marchandises à l’extérieur des États-Unis, il ne lui est pas interdit de le faire. Certaines bourses de marchandises
à l’extérieur des États-Unis sont essentiellement des « marchés de contrepartistes » où la responsabilité de
l’exécution du contrat à terme sur marchandises incombe uniquement au membre individuel avec qui le
négociant a conclu un contrat sur marchandises et non à une bourse ou à une chambre de compensation. Dans de
tels cas, le Fonds d’infrastructures sera exposé au risque associé à l’incapacité ou au refus de la contrepartie de
régler une opération ou de s’acquitter de ses obligations aux termes de ce contrat. En outre, certaines bourses de
marchandises à l’extérieur des États-Unis peuvent imposer des limites à la fluctuation des prix ou des limites
aux positions spéculatives sur le nombre de positions pouvant être détenues dans des marchandises particulières.
Le recours aux instruments dérivés et à d’autres techniques comme les ventes à découvert aux fins de couverture
comporte des risques supplémentaires, y compris i) la dépendance envers la capacité de prédire les fluctuations
du prix des titres couverts, ii) la corrélation imparfaite entre les variations des titres sur lesquelles se fondent les
instruments dérivés et les fluctuations des actifs du portefeuille sous-jacent; et iii) les obstacles éventuels à la
gestion de portefeuille efficace ou à la capacité de respecter des obligations à court terme en raison du
pourcentage des actifs du portefeuille mis de côté pour couvrir ses obligations. En outre, par la couverture d’une
position donnée, tout gain éventuel attribuable à une augmentation de la valeur de cette position peut être limité.
Couverture. Même si une couverture vise à réduire le risque, elle ne l’élimine pas entièrement. Une stratégie de
couverture pourrait ne pas être efficace. Une couverture peut entraîner une perte dans le cas d’un événement
extraordinaire. Il y a plusieurs scénarios possibles, y compris : i) la délivrance d’une ordonnance de cessation
des opérations en ce qui concerne le titre sous-jacent; ii) l’incapacité de conserver une position vendeur en
raison du rachat d’actions au gré du porteur ou de la société émettrice; iii) la disparition d’une prime de
conversion en raison de rachats prématurés, de variations des modalités de conversion ou de modifications d’une
politique en matière de dividendes d’un émetteur; iv) les facteurs se rapportant à la qualité du crédit, comme les
défauts sur obligations; et v) l’absence de liquidité pendant une période panique sur le marché. Pour protéger le
capital du Fonds d’infrastructures contre de tels événements, le gestionnaire essaiera de diversifier le
portefeuille.
Compte tenu des risques précédents, rien ne garantit que le Fonds d’infrastructures atteindra ses
objectifs de placement ni que la valeur liquidative par part de la série au moment du rachat sera égale ou
supérieure au coût initial d’un souscripteur.
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RAPPORT AUX PORTEURS DE PARTS ET ASSEMBLÉES DES PORTEURS DE PARTS
Rapport aux porteurs de parts
La fin de l’exercice financier du Fonds d’infrastructures correspond au 31 décembre. Les porteurs de parts
recevront les états financiers annuels audités dans un délai de 90 jours de la fin de l’exercice et des états
financiers semestriels non audités dans les 60 jours suivant le 30 juin ou à la fréquence prescrite par la loi par
ailleurs. Les rapports intermédiaires supplémentaires destinés aux porteurs de parts seront remis à l’appréciation
du gestionnaire. Le Fonds d’infrastructures peut conclure d’autres conventions avec certains porteurs de parts
qui peuvent donner droit à ceux-ci de recevoir des rapports supplémentaires. Les porteurs de parts recevront le
ou les relevés d’impôt applicables dans le délai prescrit par la loi applicable pour les aider à faire les
déclarations de revenus nécessaires.
Le gestionnaire a convenu de préserver la confidentialité de certains des renseignements reçus par Fiera Axium
se rapportant aux Fonds Fiera Axium, y compris les renseignements qu’il pourrait recevoir relativement à la
valeur liquidative de tout Fonds Fiera Axium et les renseignements se rapportant aux actifs détenus par les
Fonds Fiera Axium. Par conséquent, le gestionnaire ne peut fournir de tels renseignements aux porteurs de parts.
De plus, les porteurs ne pourront obtenir ces renseignements auprès du gestionnaire, de Fiera Axium, ou de l’un
des Fonds Fiera Axium, ou du Fonds marché monétaire ou du Fonds d’infrastructures.
Assemblées des porteurs de parts du Fonds d’infrastructures
Le gestionnaire ou le fiduciaire peuvent convoquer une assemblée des porteurs de parts du Fonds
d’infrastructures selon ce qu’ils estiment souhaitable en vue de la bonne administration du Fonds
d’infrastructures.
L’avis de convocation à une assemblée des porteurs de parts Fonds doit être donné au moins 21 jours avant
l’assemblée (ou tout autre délai prescrit par les lois sur les valeurs mobilières applicables) et doit comprendre
une description des questions à l’ordre du jour, la date et l’objet de l’assemblée ainsi que les autres
renseignements et documents requis pour permettre aux porteurs de parts de prendre une décision éclairée sur
les questions qui seront soumises à l’assemblée. Une erreur ou une omission accidentelle dans la transmission de
l’avis aux porteurs de parts n’a aucune incidence sur la validité d’une mesure énoncée dans l’avis en question.
Tout avis de convocation devant être remis aux termes de la convention de fiducie peut être transmis aux
porteurs de parts du Fonds d’infrastructures par courrier ordinaire, en leur envoyant à l’adresse figurant dans le
registre aux fins de l’assemblée des porteurs de parts du Fonds d’infrastructures à la date de clôture des
registres. Tout avis ainsi donné est réputé avoir été reçu par le porteur de parts cinq (5) jours ouvrables après sa
mise à la poste et, pour prouver l’envoi, il suffit que le fiduciaire ou le gestionnaire prouve que l’avis a été
correctement adressé, affranchi et posté ou qu’il a été donné au porteur de parts d’une autre manière indiquée
par ce dernier et acceptée par le fiduciaire ou le gestionnaire.
À une telle assemble, au moins deux porteurs de parts présents en personne ou représentés par procuration
forment quorum. Si le quorum est atteint à l’ouverture de l’assemblée des porteurs de parts, ceux-ci pourront
alors traiter les points à l’ordre du jour même si le quorum n’est pas maintenu tout au long de l’assemblée.
Si le quorum n’est pas atteint à l’ouverture de l’assemblée des porteurs de parts du Fonds d’infrastructures, les
porteurs de parts présents peuvent reporter l’assemblée, sans avis, à un endroit et à une heure fixes, mais ne
peuvent pas traiter d’autres questions. Les porteurs de parts présents en personne ou représentés par procuration
à l’assemblée reportée forment quorum, peu importe leur nombre et le nombre de parts qu’ils détiennent, dans la
mesure où au moins un porteur de parts est présent en personne ou représenté par procuration.
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Chaque part du Fonds d’infrastructures donne droit à une voix. Les fractions de part ne donnent droit à aucune
voix.
Chaque question soumise aux porteurs de parts est décidée à la majorité des voix exprimées en personne ou par
procuration, sauf disposition à l’effet contraire des présentes et, en cas de partage des voix, le président de
l’assemblée a une voix prépondérante.
Pour toute question à l’égard de laquelle, conformément à la convention de fiducie, à toute loi applicable ou à
toute convention portant sur le Fonds d’infrastructures, les porteurs de parts d’une série sont habilités à voter
séparément en tant que série ou, si le fiduciaire détermine qu’une question porterait atteinte aux porteurs de parts
d’une ou plusieurs séries de parts d’une manière considérablement différente des porteurs de parts du Fonds
d’infrastructures pris ensemble, une assemblée distincte des porteurs de parts de la série visée sera convoquée.
Dans un tel cas, la question n’entre en vigueur qu’à l’approbation par les porteurs de parts de chaque série ayant
le droit de voter sur la question.
MODIFICATION DE LA CONVENTION DE FIDUCIE
ET DISSOLUTION DU FONDS D’INVESTISSEMENT
Conformément à la convention de fiducie applicable au Fonds d’infrastructures, le gestionnaire peut, avec
l’approbation du fiduciaire, modifier, y compris supprimer, toute modalité de la convention de fiducie, sans en
aviser les porteurs de parts du Fonds d’infrastructures ni solliciter leur approbation préalable, à moins que la
modification ne porte sur une question devant être soumise à l’approbation des porteurs de parts du Fonds
d’infrastructures conformément aux lois applicables sur les valeurs mobilières. Toutefois, si le gestionnaire,
agissant raisonnablement, estime qu’une modification proposée à la convention de fiducie pourrait avoir une
incidence défavorable importante sur les intérêts financiers ou les droits des porteurs de parts, de sorte qu’il soit
équitable de transmettre un préavis aux porteurs de parts, aucune modification ne sera alors apportée à la
convention de fiducie tant que le gestionnaire n’aura pas transmis aux porteurs de parts, relativement à un tel
changement, un préavis de 30 jours ou un préavis plus long conformément aux lois sur les valeurs mobilières
applicables.
Le gestionnaire n’a connaissance d’aucune exigence des lois applicables qui nécessite actuellement
l’approbation des porteurs de parts quant à une modification de la convention de fiducie ou d’une autre
modification à apporter au Fonds d’infrastructures. À ce titre, le gestionnaire ne prévoit pas tenir d’assemblées
des porteurs de parts.
Sous réserve des lois applicables sur les valeurs mobilières, le Fonds d’infrastructures continue d’exister jusqu’à
ce qu’il soit dissous par le fiduciaire selon les instructions du gestionnaire ou d’une autre manière prévue par la
convention de fiducie. Le fiduciaire peut ordonner que le Fonds d’infrastructures soit dissous à la date fixée par
le gestionnaire, qui doit se situer au moins 60 jours après la date à laquelle un avis à cet effet a été remis aux
porteurs de parts du Fonds d’infrastructures.
En date de l’annonce de la dissolution du Fonds d’infrastructures, le fiduciaire peut distribuer aux porteurs de
parts, ou faire en sorte que leur soit distribué, proportionnellement à la valeur des parts qu’ils détiennent, l’actif
net du Fonds d’infrastructures qui peut servir à cette fin, qui peut comprendre les titres en portefeuille du Fonds
d’infrastructures. Le gestionnaire a le droit d’exiger une quittance des porteurs de parts, selon la forme qu’il
établit, comme condition de la distribution.
La distribution libère le gestionnaire, le fiduciaire et le Fonds d’infrastructures de toutes leurs obligations envers
les porteurs de parts et met fin à la fiducie. Le fiduciaire et le gestionnaire ne sont pas tenus de rendre des
comptes relativement à l’administration ou à la liquidation du Fonds d’infrastructures.
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AUDITEURS
Les auditeurs du Fonds d’infrastructures sont PRICEWATERHOUSECOOPERS s.r.l./s.e.n.c.r.l. ou tout autre cabinet
dont le gestionnaire peut retenir les services.
DÉPOSITAIRE ET ADMINISTRATEUR
TRUST BANQUE NATIONALE INC., ou toute autre partie dont le gestionnaire peut retenir les services, agit comme
dépositaire et administrateur du Fonds d’infrastructures.
CONSEILLERS JURIDIQUES
FASKEN MARTINEAU DUMOULIN S.E.N.C.R.L., S.R.L., ou tout autre cabinet dont le gestionnaire peut retenir les
services, agit comme conseiller juridique du gestionnaire et du Fonds d’infrastructures.
CONTRATS IMPORTANTS
Le seul contrat important du Fonds d’infrastructures est la convention de fiducie. Des exemplaires de la
convention seront mis à la disposition des porteurs de parts sur demande et peuvent être examinés au bureau
principal du Fonds d’infrastructures pendant les heures ouvrables habituelles.
DROITS D’ACTION PRÉVUS PAR LA LOI ET DROITS D’ACTION CONTRACTUELS
Les droits d’action prévus par la loi et les droits d’action contractuels en dommages-intérêts et en annulation
suivants s’appliqueront à une souscription de parts. Les lois sur les valeurs mobilières applicables de certains
territoires du placement confèrent ou exigent que soit conféré au souscripteur le droit de demander la nullité ou
des dommages-intérêts, ou les deux, si la présente notice d’offre ou si des modifications de celle-ci contiennent
des informations fausses ou trompeuses. Toutefois, ces recours doivent être exercés dans les délais prescrits. Les
acquéreurs devraient consulter les dispositions législatives applicables pour obtenir le texte intégral de ces
droits ou consulter un conseiller juridique.
Droits des acquéreurs en Alberta
La législation en valeurs mobilières en Alberta prévoit que chaque souscripteur de parts aux termes de la
présente notice d’offre ou de toute modification de celle-ci se voit conférer, outre les autres droits que la loi lui
confère, le droit d’intenter une action en dommages-intérêts ou en annulation contre le Fonds d’infrastructures et
certaines autres personnes si la présente notice d’offre ou une modification de celle-ci renferme des
« informations fausses ou trompeuses » (au sens de misrepresentation dans la loi intitulée Securities Act
(Alberta) (la « Loi de l’Alberta »)). Toutefois, ces droits doivent être exercés dans des délais prescrits. Les
acquéreurs devraient se reporter aux dispositions applicables de la législation en valeurs mobilières de l’Alberta
pour obtenir des précisions sur ces droits ou consulter un avocat. Plus particulièrement, l’article 204 de la Loi de
l’Alberta prévoit que si la présente notice d’offre ou une modification de celle-ci renferme des informations
fausses ou trompeuses, le souscripteur de parts offertes aux termes de la présente notice d’offre ou d’une
modification sera réputé s’y être fié, s’il s’agissait d’informations fausses ou trompeuses au moment de la
souscription, et dispose d’un droit d’action en dommages-intérêts contre le Fonds d’infrastructures et toute
personne ou société qui a signé la présente notice d’offre ou, par ailleurs, d’un droit d’annulation contre le Fonds
d’infrastructures, étant entendu que si le souscripteur exerce son droit d’annulation contre le Fonds
d’infrastructures, il n’aura aucun droit d’action en dommages-intérêts contre le Fonds d’infrastructures ou la
personne ou la société susmentionnée.
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Aucune action ne pourra être intentée pour faire valoir les droits d’action précités à moins que les droits ne
soient exercés :
a)
dans le cas d’une action en annulation, au plus tard 180 jours à compter de la date de l’opération
qui a donné lieu à la cause d’action;
b)
dans le cas d’une action, autre qu’une action en annulation, dans le plus court des délais
suivants :
i)
180 jours à compter de la date à laquelle le souscripteur a initialement pris connaissance
des faits donnant lieu à la cause d’action, ou
ii)
trois ans à compter de la date de l’opération qui a donné lieu à la cause d’action.
Aucune personne ou société mentionnée précédemment ne peut être tenue responsable si elle prouve que le
souscripteur savait qu’il s’agissait d’informations fausses ou trompeuses. En outre, aucune personne ou société
ne peut être tenue responsable dans le cadre d’une action intentée en vertu de l’article 204 de la Loi de l’Alberta
si elle démontre :
a)
que la présente notice d’offre ou une modification de celle-ci a été transmise au souscripteur à
son insu ou sans son consentement et que, dès que cette transmission a été portée à son
attention, elle a fait savoir par un avis raisonnable au Fonds d’infrastructures qu’elle avait été
ainsi transmise;
b)
que dès qu’elle a appris que la présente notice d’offre contenait des informations fausses ou
trompeuses, la personne ou la société a retiré son consentement à ladite notice d’offre et a fait
savoir par un avis raisonnable transmis au Fonds d’infrastructures le retrait et les raisons
l’expliquant;
c)
que, à l’égard de toute partie de la notice d’offre ou d’une modification de celle-ci, censée être
établie sous l’autorité d’un expert ou censée être une copie d’un rapport, d’une opinion ou d’une
déclaration d’un expert ou en être un extrait, la personne ou société n’avait aucun motif
raisonnable de croire et ne croyait pas qu’il y avait eu d’informations fausses ou trompeuses ou
que la partie pertinente de la présente notice d’offre ou d’une modification de celle-ci ne
représentait pas fidèlement le rapport, l’opinion ou la déclaration de l’expert ou n’était pas une
copie fidèle du rapport, de l’opinion ou de la déclaration de l’expert ou n’en était pas un extrait
fidèle.
En outre, aucune personne ou société n’est tenue responsable en ce qui a trait à toute partie de la présente notice
d’offre ou d’une modification de celle-ci qui n’est pas censée être faite sous l’autorité d’un expert ni censée être
la copie d’un rapport, d’un avis ou d’une déclaration d’un expert ou en être un extrait, à moins que la personne
ou la société : i) n’ait omis de faire une enquête suffisante de façon à ce qu’elle ait des motifs raisonnables de
croire qu’il n’y avait pas eu d’informations fausses ou trompeuses ou ii) qu’elle ne croyait qu’il y avait eu des
informations fausses ou trompeuses.
Dans le cas d’une action en dommages-intérêts, la partie défenderesse ne sera pas tenue responsable de la
totalité ou d’une partie des dommages-intérêts si elle prouve que ceux-ci ne correspondent pas à la diminution
de la valeur des parts attribuable aux informations fausses ou trompeuses auxquelles s’est fié le souscripteur. Le
montant recouvrable grâce à ce droit d’action ne doit pas dépasser le prix auquel les parts étaient offertes aux
termes de la présente notice d’offre ou de toute modification de celle-ci. Les droits d’action en annulation ou en
dommages-intérêts s’ajoutent aux autres droits que la loi confère au souscripteur, sans y déroger.
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Le présent résumé est donné sous réserve des dispositions expresses de la Loi de l’Alberta et des règlements et
des règles pris en application de celle-ci, et les investisseurs éventuels devraient se reporter au texte complet de
ces dispositions.
Droits des acquéreurs en Saskatchewan
L’article 138 de la loi intitulée The Securities Act, 1988 (Saskatchewan), dans sa version modifiée (la « Loi de
la Saskatchewan »), prévoit que si une notice d’offre (comme la présente notice d’offre) ou une modification de
celle-ci est transmise ou remise à un souscripteur et qu’elle contient des « informations fausses ou trompeuses »
(au sens de misrepresentation dans la Loi de la Saskatchewan), le souscripteur qui fait la souscription d’une part
visée par la présente notice d’offre ou une modification de celle-ci peut, sans égard au fait qu’il se soit fié à ces
informations, intenter une action en annulation contre le Fonds d’infrastructures ou une action en dommagesintérêts contre :
a)
le Fonds d’infrastructures;
b)
chaque promoteur du Fonds d’infrastructures au moment où la notice d’offre et une
modification de celle-ci a été transmise ou remise;
c)
chaque personne ou société dont le consentement a été déposé en ce qui concerne le placement,
mais uniquement à l’égard des rapports faits ou des avis ou des déclarations donnés par cette
personne ou société;
d)
chaque personne ou société qui, outre les personnes ou sociétés mentionnées aux points a) à c)
précédents a signé la présente notice d’offre ou toute modification de celle-ci;
e)
chaque personne ou société qui vend les parts du Fonds d’infrastructures au nom du Fonds
d’infrastructures aux termes de la présente notice d’offre ou d’une modification de celle-ci.
Ces droits d’action en annulation et en dommages-intérêts font l’objet de certaines restrictions, dont les
suivantes :
a)
si le souscripteur choisit d’exercer son droit d’annulation contre le Fonds d’infrastructures, il
n’a aucun droit d’action en dommages-intérêts contre lui;
b)
dans le cas d’une action en dommages-intérêts, un défendeur ne sera pas tenu responsable d’une
partie ou de la totalité des dommages-intérêts s’il prouve qu’ils ne représentent pas la
diminution de la valeur des parts attribuable aux informations fausses ou trompeuses auxquelles
s’est fié le souscripteur;
c)
aucune personne ou société, sauf le Fonds d’infrastructures, ne sera tenue responsable à l’égard
de toute partie de la présente notice d’offre ou d’une modification de celle-ci qui n’est pas
censée être faite sous l’autorité d’un expert et qui n’est pas censée être un double ou un extrait
d’un rapport, d’un avis ou d’une déclaration d’un expert, à moins que la personne ou société
n’ait omis de mener une enquête suffisante en vue de disposer de motifs raisonnables pour
conclure à l’absence d’information fausse ou trompeuse ou n’ait cru qu’il y avait des
informations fausses ou trompeuses;
d)
en aucun cas, le montant recouvrable ne doit dépasser le prix auquel les parts ont été offertes;
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e)
aucune personne ou société n’est tenue responsable dans le cadre d’une action en annulation ou
en dommages-intérêts si elle prouve que le souscripteur a fait la souscription des titres en ayant
connaissance des informations fausses ou trompeuses.
En outre, aucune personne ou société, sauf le Fonds d’infrastructures, ne sera tenue responsable dans le cas
d’une action intentée aux termes de l’article 138 de la Loi de la Saskatchewan si la personne ou la société
prouve :
a)
que la présente notice d’offre ou une modification de celle-ci été transmise ou remise à son insu
ou sans son consentement et dès que cette transmission ou cette remise a été portée à son
attention, la personne ou la société a fait savoir par un avis général raisonnable qu’elle avait été
ainsi transmise ou remise;
b)
que, à l’égard de toute partie de la présente notice d’offre ou d’une modification de celle-ci,
censée avoir été faite sous l’autorité d’un expert, ou censée constituer un double ou un extrait
d’un rapport, d’un avis ou d’une déclaration d’un expert, la personne ou la société n’avait aucun
motif raisonnable de croire et n’a pas cru qu’il s’agissait d’informations fausses ou trompeuses
ou que la partie de la notice d’offre ou d’une modification de celle-ci n’exprimait pas une juste
présentation du rapport, de l’avis ou de la déclaration de l’expert ou n’était pas un double ou un
extrait conforme du rapport, de l’avis ou de la déclaration de l’expert.
En outre, aucune personne ou société ne sera tenue responsable dans le cas d’une action aux termes de
l’article 138 de la Loi de la Saskatchewan si elle prouve, à l’égard d’une déclaration fausse ou trompeuse dans
l’information prospective (au sens de forward looking information dans la Loi de la Saskatchewan), que le
document renfermant l’information prospective contenait à proximité de cette information une mise en garde
raisonnable qualifiant l’information prospective de telle et dressant la liste des facteurs importants susceptibles
d’entraîner un écart important entre les résultats réels et une conclusion, une prévision ou une projection qui
figure dans l’information prospective ainsi qu’un énoncé des facteurs et des hypothèses importants qui ont servi
à tirer une conclusion ou à faire une prévision ou une projection qui figure dans l’information prospective et que
la personne ou la société avait un motif raisonnable de tirer les conclusions ou de faire les prévisions ou les
projections figurant dans l’information prospective.
Les présentes n’exposent pas tous les moyens de défense que nous ou d’autres personnes pouvons invoquer. Il y
a lieu de se reporter au texte intégral de la Loi de la Saskatchewan pour en avoir une liste exhaustive.
L’article 138.1 de la Loi de la Saskatchewan renferme des droits d’action en dommages-intérêts et en annulation
analogues en ce qui concerne les déclarations fausses ou trompeuses figurant dans des documents de publicité et
de vente diffusés dans le cadre d’un placement de titres.
L’article 138.2 de la Loi de la Saskatchewan prévoit également, si un particulier fait à un souscripteur éventuel
une déclaration verbale qui renferme des informations fausses ou trompeuses se rapportant au titre acheté, et que
la déclaration verbale est faite avant la souscription du titre ou simultanément, que le souscripteur peut, sans
égard au fait qu’il se soit fié à ces informations, intenter une action en dommages-intérêts contre le particulier
qui a fait la déclaration verbale.
Le paragraphe 141(1) de la Loi de la Saskatchewan confère à un souscripteur le droit d’invalider la convention
de souscription et de recouvrer toute somme d’argent ou autre contrepartie qu’il a versée pour les titres si les
titres sont vendus en contravention de la Loi de la Saskatchewan, des règlements pris en vertu de celle-ci ou
d’une décision de la commission des services financiers de la Saskatchewan.
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Le paragraphe 141(2) de la Loi de la Saskatchewan confère également un droit d’action en annulation ou en
dommages-intérêts à un souscripteur de titres qui n’a pas reçu la notice d’offre ou une modification de celle-ci
avant la conclusion d’une entente de souscription de titres ou en même temps, ainsi que l’exige l’article 80.1 de
la Loi de la Saskatchewan.
Les droits d’action en dommages-intérêts ou en annulation en vertu de la Loi de la Saskatchewan s’ajoutent à
tout autre droit conféré au souscripteur par la loi, sans y déroger.
L’article 147 de la Loi de la Saskatchewan prévoit qu’aucune action ne pourra être intentée pour faire valoir les
droits d’action précités, à moins que les droits ne soient exercés :
a)
dans le cas d’une action en résolution ou en annulation, au plus tard 180 jours à compter de la
date de l’opération qui a donné lieu à la cause d’action;
b)
dans le cas de toute autre action, sauf une action en résolution ou en annulation, dans le plus
court des délais suivants :
i)
un an après que le demandeur a initialement pris connaissance des faits donnant
naissance à la cause d’action, ou
ii)
six ans après la date de l’opération qui a donné lieu à la cause d’action.
L’article 80.1 de la Loi de la Saskatchewan confère également à un souscripteur qui a reçu une notice d’offre
modifiée remise conformément au paragraphe 80.1(3) de la Loi de la Saskatchewan un droit de résolution du
contrat de souscription de titres en remettant à la personne ou à la société qui vend les titres un avis indiquant
son intention de ne pas être lié par le contrat de souscription, à la condition que cet avis soit remis par le
souscripteur dans un délai de deux jours ouvrables de la réception de la notice d’offre modifiée.
Droits des acquéreurs au Manitoba prévus par la loi
Si le souscripteur réside au Manitoba et si la présente notice d’offre, ainsi qu’une modification de celle-ci, ou
une publicité ou de la documentation relative aux parts, contient de l’information fausse ou trompeuse, chaque
souscripteur du Manitoba, ou autrement assujetti aux lois sur les valeurs mobilières applicables du Manitoba, à
qui la notice d’offre a été transmise ou remise et qui acquiert des parts sera réputé s’être fié à cette information
fausse ou trompeuse si elle était telle au moment de la souscription, et le souscripteur se voit conférer un droit
d’action en dommages-intérêts contre le Fonds d’infrastructures et, sous réserve de certains moyens de défense
supplémentaires, contre les administrateurs du Fonds d’infrastructures qui étaient administrateurs à la date de la
notice d’offre, de même que contre toute personne ou société qui a signé la notice d’offre et une modification de
celle-ci, ou bien, pendant qu’il est toujours propriétaire des parts, il peut plutôt choisir d’exercer un droit
d’action en rescision contre le Fonds d’infrastructures, auquel cas, le souscripteur n’a plus aucun droit d’action
en dommages-intérêts contre le Fonds d’infrastructures ou les administrateurs du Fonds d’infrastructures ou
toute autre personne ou société qui a signé la présente notice d’offre, étant entendu, entre autres restrictions,
que :
a)
dans le cas d’une action en rescision ou en dommages-intérêts, aucune personne ou société ne
sera tenue responsable si elle démontre que le souscripteur a fait la souscription des parts en
sachant que l’information était fausse et trompeuse;
b)
dans le cas d’une action en dommages-intérêts, aucune personne ou société ne sera tenue
responsable de la totalité ou d’une partie des dommages-intérêts si elle démontre qu’elle ne
représente pas la diminution de la valeur des parts attribuable à l’information fausse et
trompeuse à laquelle le souscripteur s’est fié;
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c)
en aucun cas, le montant recouvrable aux termes du droit d’action précité ne peut excéder le
prix auquel les parts étaient offertes aux termes de la présente notice d’offre.
Toutes les personnes ou sociétés susmentionnées qui sont tenues responsables ou qui acceptent d’être tenues
responsables sont solidairement responsables. Une personne ou une société qui est tenue responsable de payer
une somme en dommages-intérêts peut recouvrer une contribution, en totalité ou en partie, auprès d’une
personne qui est solidairement responsable d’effectuer le même paiement dans la même cause d’action, à moins
que, compte tenu des circonstances, le tribunal ne soit convaincu qu’il serait injuste et inéquitable d’agir ainsi.
En outre, aucune personne ou société, à l’exception du Fonds d’infrastructures, ne peut être tenue responsable si
elle démontre :
a)
que la présente notice d’offre et une modification de celle-ci a été expédiée au souscripteur sans
sa connaissance ou son consentement et que, dès qu’elle l’a appris, elle a immédiatement donné
un avis général suffisant à cet effet;
b)
qu’après l’expédition de la présente notice d’offre ou d’une modification de celle-ci et avant que
le souscripteur fasse la souscription des parts, dès qu’elle a appris que la présente notice d’offre
ou une modification de celle-ci contenait une information fausse et trompeuse, la personne ou la
société a retiré son consentement à ladite notice d’offre ou à une modification de celle-ci et a
donné un avis général suffisant du retrait et des raisons l’expliquant;
c)
que, à l’égard de toute partie de la notice d’offre ou d’une modification de celle-ci, censée être
établie sous l’autorité d’un expert ou censée être une copie d’un rapport, d’une opinion ou d’une
déclaration d’un expert ou en être un extrait, la personne ou société n’avait aucun motif de
croire et ne croyait pas : i) qu’il y avait eu d’informations fausses ou trompeuses ou ii) que la
partie pertinente de la présente notice d’offre ou d’une modification de celle-ci A) ne
représentait pas fidèlement le rapport, l’opinion ou la déclaration de l’expert ou B) n’était pas
une copie fidèle du rapport, de l’opinion ou de la déclaration de l’expert ou n’en était pas un
extrait fidèle.
En outre, aucune personne ou société, à l’exception du Fonds d’infrastructures, n’est tenue responsable en ce qui
a trait à toute partie de la présente notice d’offre ou d’une modification de celle-ci qui n’est pas censée être faite
sous l’autorité d’un expert ni censée être la copie d’un rapport, d’un avis ou d’une déclaration d’un expert ou en
être un extrait, à moins que la personne ou la société : i) n’ait omis de faire une enquête suffisante de façon à ce
qu’elle ait des motifs raisonnables de croire qu’il n’y avait pas eu d’informations fausses ou trompeuses ou
ii) qu’elle ne croyait qu’il y avait eu des informations fausses ou trompeuses.
En outre, aucune action ne peut être intentée pour faire valoir les droits d’action précités après l’expiration des
délais suivants :
a)
dans le cas d’une action en rescision, 180 jours après le jour de l’opération qui est à l’origine de
l’action, ou
b)
dans le cas d’une action autre qu’une action en annulation, dans le plus court des délais
suivants : i) 180 jours après le jour où le souscripteur a été informé des faits à l’origine de
l’action, ou ii) deux ans après le jour de l’opération qui est à l’origine de l’action.
En outre, si une information fausse ou trompeuse figure dans un document intégré, ou réputé intégré par renvoi
dans la présente notice d’offre ou une modification de celle-ci, l’information fausse ou trompeuse est réputée
figurer dans la notice d’offre ou une modification de celle-ci.
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Les droits exposés précédemment s’ajoutent aux autres droits ou recours que les souscripteurs peuvent invoquer
en droit, sans y déroger, et visent à correspondre aux dispositions de la Loi sur les valeurs mobilières (Manitoba)
et sont assujettis aux moyens de défense indiqués dans ces lois.
Droits des acquéreurs en Ontario
Un souscripteur de parts du Fonds d’infrastructures qui est un résident de l’Ontario et à qui la présente notice
d’offre a été délivrée peut, si le montant de l’achat ne dépasse pas 50 000 $, faire annuler le contrat de
souscription de ces parts en faisant parvenir au Fonds d’infrastructures un avis écrit dans les 48 heures suivant le
moment où le souscripteur reçoit la confirmation de la souscription de parts. Le montant que le souscripteur peut
recevoir par suite de l’exercice du droit d’annulation ne dépassera pas la valeur liquidative des parts souscrites,
au moment de l’exercice du droit d’annulation, mais il aura droit de recevoir, de tous les courtiers inscrits par
l’entremise desquels ces parts ont été souscrites (le cas échéant), un remboursement des frais de vente et des
honoraires relatifs au placement du souscripteur dans le Fonds d’infrastructures, relativement aux parts à l’égard
desquelles l’avis d’annulation a été donné.
Advenant que la présente notice d’offre ou toute modification de celle-ci contient une présentation inexacte des
faits, un souscripteur résidant en Ontario qui achète des parts du Fonds d’infrastructures offertes en vertu de la
présente notice d’offre durant la période du placement peut, sans égard au fait qu’il se soit fié à cette
présentation inexacte des faits, intenter une action en dommages-intérêts contre le Fonds d’infrastructures ou,
pendant qu’il est encore propriétaire des parts, une action en annulation contre le Fonds d’infrastructures. Il est
toutefois entendu que :
a)
si le souscripteur exerce son droit d’annulation, il perd son droit d’intenter une action en
dommages-intérêts contre le Fonds d’infrastructures;
b)
le Fonds d’infrastructures ne sera pas responsable s’il prouve que le souscripteur a fait l’achat
des parts en ayant connaissance de la présentation inexacte des faits;
c)
dans le cas d’une action en dommages-intérêts, le Fonds d’infrastructures ne sera pas
responsable de la totalité ou d’une partie des dommages-intérêts s’il prouve que la somme en
question ne correspond pas à la diminution de la valeur des parts attribuable à la présentation
inexacte des faits;
d)
en aucun cas, le montant susceptible d’être recouvré n’excédera le prix auquel les parts ont été
offertes.
Aucune action ne peut être intentée pour faire valoir ces droits, à moins qu’ils ne soient exercés :
a)
dans le cas d’une action en annulation, au plus tard 180 jours à compter de la date de l’opération
qui a donné lieu à la cause d’action;
b)
dans le cas d’une action en dommages-intérêts, dans le plus court des délais suivants :
i)
180 jours à compter de la date à laquelle le souscripteur a initialement pris connaissance
des faits donnant naissance à la cause d’action; ou
ii)
trois (3) ans à compter de la date à laquelle l’acheteur a acheté les parts.
La présente notice d’offre est délivrée dans le cadre d’un placement effectué en Ontario sous le régime de la
dispense de prospectus prévue à l’article 2.3 du Règlement 45-106 (la « dispense relative à l’investisseur
qualifié »). Les droits susmentionnés ne s’appliquent pas si la présente notice d’offre est délivrée à un
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souscripteur éventuel en Ontario, dans le cadre d’un placement effectué en Ontario sous le régime d’une
dispense relative à l’investisseur qualifié, si le souscripteur éventuel est :
a)
une institution financière canadienne ou une banque de l’annexe III (dans chaque cas, au sens de
la Rule 45-501 de la CVMO, Ontario Prospectus and Registration Exemptions);
b)
la Banque de développement du Canada constituée en vertu de la Loi sur la Banque de
développement du Canada (Canada);
c)
une filiale d’une personne visée aux paragraphes a) ou b), dans la mesure où celle-ci détient la
totalité des actions comportant droit de vote de la filiale, à l’exception de celles que détiennent
les administrateurs de la filiale en vertu de la loi.
Droits des acquéreurs au Nouveau-Brunswick
La Loi sur les valeurs mobilières (Nouveau-Brunswick) (la « Loi du Nouveau-Brunswick ») prévoit, sous
réserve de certaines restrictions, que si la présente notice d’offre ou une modification de celle-ci, qui est remise à
un souscripteur de parts, renferme une déclaration erronée d’un fait important ou une omission de relater un fait
important dont la déclaration est requise ou nécessaire pour que la déclaration ne soit pas trompeuse, compte
tenu des circonstances dans lesquelles la déclaration a été faite (une « présentation inexacte des faits »), le
souscripteur qui souscrit des parts est réputé s’être fié à cette présentation inexacte des faits si elle en constituait
une au moment de la souscription et le souscripteur, sous réserve de certaines défenses, possède un droit
d’action en dommages-intérêts contre le Fonds d’infrastructures ou peut choisir d’exercer un droit d’annulation
contre le vendeur, auquel cas il ne peut intenter aucune action en dommages-intérêts; toutefois :
a)
dans le cas d’une action en annulation ou en dommages-intérêts, le défendeur ne sera pas tenu
responsable s’il prouve que le souscripteur a souscrit le titre en ayant connaissance de la
présentation inexacte des faits;
b)
dans le cas d’une action en dommages-intérêts, le défendeur ne peut être tenu responsable d’une
partie ou de la totalité des dommages-intérêts s’il prouve que la somme en question ne
correspond pas à la diminution de la valeur du titre attribuable à la présentation inexacte des
faits à laquelle le souscripteur s’est fié;
c)
en aucun cas, le montant pouvant être recouvré aux termes du droit d’action décrit aux présentes
ne sera supérieur au prix d’offre des titres.
Le droit d’action en annulation ou en dommages-intérêts décrit aux présentes est conféré par l’article 150 de la
Loi du Nouveau-Brunswick et s’ajoute à tout autre droit que la loi confère au souscripteur, sans y déroger.
Aux termes de l’article 161 de la Loi du Nouveau-Brunswick, aucune action ne peut être intentée afin de faire
valoir un droit d’annulation, à moins de l’être au plus tard 180 jours après la date de l’opération qui a donné lieu
à la cause d’action et, dans le cas de toute action sauf une action en annulation, dans le plus court des délais
suivants : i) une année après la date à laquelle le demandeur a initialement eu connaissance des faits liés à la
cause d’action, ou ii) six ans après la date de l’opération qui a donné lieu à la cause d’action.
Droits des acquéreurs en Nouvelle-Écosse
La loi intitulée Securities Act (Nouvelle-Écosse) prévoit, sous réserve de certaines restrictions, que si la présente
notice d’offre ainsi qu’une modification de celle-ci ou des documents publicitaires ou de vente (advertising or
sales literature) (au sens de cette expression dans la loi intitulée Securities Act (Nouvelle-Écosse)) diffusés dans
le cadre du placement renferment une déclaration erronée au sujet d’un fait important ou omettent de déclarer un
- 43 -
fait important qui est nécessaire pour empêcher qu’une déclaration figurant dans la présente notice d’offre, une
modification apportée à celle-ci ou des documents publicitaires ou de vente soient trompeurs à la lumière des
circonstances dans lesquelles la déclaration a été faite (dans chaque cas, des « informations fausses ou
trompeuses »), déclaration qui était fausse ou trompeuse au moment de la souscription, le souscripteur qui
souscrit des parts dispose d’un droit d’action en dommages-intérêts contre le Fonds d’infrastructures, et, sous
réserve de certaines défenses supplémentaires, chaque vendeur des parts (sauf le Fonds d’infrastructures), les
administrateurs du vendeur et les personnes qui ont signé la présente notice d’offre.
Par ailleurs, le souscripteur peut choisir d’exercer un droit d’annulation contre le vendeur, auquel cas il ne
dispose d’aucun droit en dommages-intérêts contre le vendeur, les administrateurs du vendeur ou les personnes
qui ont signé la notice d’offre.
Les droits précédents sont sous réserve, entre autres restrictions, de ce qui suit :
a)
aucune action ne peut être intentée pour faire valoir l’un des droits précédents plus de 120 jours
après la date du paiement initial des parts;
b)
aucune personne ne sera tenue responsable si elle prouve que le souscripteur a acheté les parts
en ayant connaissance des informations fausses ou trompeuses;
c)
dans le cas d’une action en dommages-intérêts, aucune personne ne sera tenue responsable
d’une partie ou de la totalité des dommages-intérêts si elle prouve qu’ils ne représentent pas la
diminution de la valeur des parts attribuable aux informations fausses ou trompeuses auxquelles
le souscripteur s’est fié;
d)
en aucun cas, le montant pouvant être recouvré au cours de l’action ne sera supérieur au prix
auquel les parts étaient offertes aux termes de la présente notice d’offre ou d’une modification
de celle-ci.
En outre, aucune personne ou société autre que le Fonds d’infrastructures ne peut être tenue responsable si la
personne ou la société prouve que :
a)
la présente notice d’offre ou une modification de celle-ci a été transmise ou remise au
souscripteur sans que la personne ou la société n’en ait eu connaissance ou n’y ait consenti et
que, dès qu’elle a appris sa remise, la personne ou la société a donné un avis général raisonnable
indiquant qu’elle avait été remise sans qu’elle le sache ou y ait consenti;
b)
après la remise de la présente notice d’offre ou d’une modification de celle-ci et avant la
souscription de parts par le souscripteur, dès qu’elle a pris connaissance des informations
fausses ou trompeuses figurant dans la présente notice d’offre, ou dans une modification de
celle-ci, la personne ou la société a retiré son consentement à la présente notice d’offre, ou à une
modification de celle-ci, et a donné un avis général raisonnable de ce retrait et de son motif;
c)
à l’égard de toute partie de la présente notice d’offre ou d’une modification de celle-ci censée
être faite sous l’autorité d’un expert ou censée être une copie ou un extrait d’un rapport, d’un
avis ou d’une déclaration d’un expert, la personne ou la société n’avait aucun motif raisonnable
de croire et n’a pas cru qu’il s’agissait d’informations fausses ou trompeuses ou que la partie de
la présente notice d’offre ou une modification de celle-ci i) ne représentait pas de façon fidèle le
rapport, l’avis ou la déclaration de l’expert ou ii) qu’il ne s’agit pas d’une copie fidèle ou d’un
extrait d’un rapport, d’un avis ou d’une déclaration de l’expert.
En outre, aucune personne ou société, sauf le Fonds d’infrastructures, n’est responsable en ce qui concerne une
partie de la présente notice d’offre ou d’une modification de celle-ci qui n’est pas censée être faite sous
l’autorité d’un expert et qui n’est pas censée être un double ou un extrait d’un rapport, d’un avis ou d’une
- 44 -
déclaration d’un expert, à moins que la personne ou la société i) n’ait omis de mener une enquête raisonnable en
vue de disposer de motifs raisonnables pour conclure à l’absence d’informations fausses ou trompeuses ou
ii) n’ait cru qu’il y avait des informations fausses ou trompeuses.
Si des informations fausses ou trompeuses figurent dans un registre intégré par renvoi ou réputé intégré par
renvoi dans la présente notice d’offre ou une modification de celle-ci, les informations fausses ou trompeuses
sont réputées figurer dans la présente notice d’offre ou la modification de celle-ci.
Les droits d’action en annulation ou en dommages-intérêts s’ajoutent au droit que la loi confère au souscripteur,
sans y déroger.
Droits des acquéreurs au Québec
Une disposition législative adoptée au Québec, mais qui n’est pas encore en vigueur, conférera aux souscripteurs
de parts un droit d’action prévu par la loi (si la disposition est proclamée en vigueur). Jusqu’à ce que la
disposition soit en vigueur, outre les droits et recours que peuvent invoquer les souscripteurs de parts aux termes
des règles habituelles en matière de responsabilité civile, les souscripteurs se voient conférer les mêmes droits
d’action en dommages-intérêts ou en annulation que les souscripteurs de l’Ontario. Quand la mesure législative
sera en vigueur et en présumant qu’aucune autre modification ne sera apportée à la mesure législative, les
souscripteurs de parts résidant au Québec n’auront alors plus les droits conférés aux souscripteurs de l’Ontario,
et les dispositions suivantes s’appliqueront, outre tout autre droit ou recours que peuvent invoquer les
souscripteurs de parts résidant au Québec en vertu des règles habituelles en matière de responsabilité civile.
En cas d’information fausse ou trompeuse dans la présente notice d’offre, les souscripteurs auront un droit
d’action prévu par la loi aux fins suivantes :
a)
l’annulation du contrat de souscription des parts ou la révision du prix auquel les parts ont été
vendues au souscripteur;
b)
l’obtention de dommages-intérêts contre le Fonds d’infrastructures, les personnes responsables
du patrimoine du Fonds d’infrastructures, le ou les courtiers avec qui le Fonds d’infrastructures
a conclu un contrat relativement à la vente de ces parts et tout expert dont l’avis figure dans la
présente notice d’offre si cet avis contient des informations fausses ou trompeuses.
Ce droit d’action prévu par la loi sera conféré aux souscripteurs, que ceux-ci se soient fiés ou non à la notice
d’offre. Les acquéreurs seront en mesure de choisir d’annuler leur contrat d’achat de ces titres ou d’intenter une
action en révision du prix sans porter atteinte à leur demande en dommages-intérêts.
Toutefois, les personnes que les souscripteurs ont le droit de poursuivre disposeront de diverses défenses. Ainsi,
elles pourront faire valoir en défense que les souscripteurs connaissaient, au moment de l’opération, la nature
fausse ou trompeuse de l’information reprochée. Dans une action en dommages-intérêts, une des personnes
indiquées précédemment, sauf le Fonds d’infrastructures ou les personnes responsables du patrimoine du Fonds
d’infrastructures, ne sera pas tenue responsable si elle a agi avec prudence et diligence.
En outre, le défendeur ne sera pas responsable de l’information fausse ou trompeuse que contient l’information
prospective s’il prouve ce qui suit :
a)
la présente notice d’offre contient, à proximité de l’information prospective, une mise en garde
suffisante indiquant qu’il s’agit d’une information prospective et en énumérant les facteurs
significatifs qui pourraient entraîner un écart important entre les résultats réels et les
conclusions, prévisions ou projections contenues dans l’information prospective et une mention
- 45 -
des facteurs ou des hypothèses significatifs pris en compte en vue de formuler les conclusions,
prévisions ou projections;
b)
les conclusions, prévisions ou projections qu’il a formulées avaient un fondement valable.
Si les souscripteurs de parts comptent se fonder sur les droits décrits au point a) ou b), ils devront le faire dans
des délais stricts. Les acquéreurs devront intenter une action en vue d’annuler le contrat ou de réviser le prix
dans un délai de trois ans après la date de la souscription. Les acquéreurs devront entreprendre une action en
dommages-intérêts dans le plus court des délais suivants : i) trois ans après avoir pris connaissance des faits
donnant lieu à la cause d’action (sauf s’il y a une preuve de la connaissance tardive imputable à la négligence
des souscripteurs) ou ii) cinq ans après le dépôt de la présente notice d’offre auprès de l’Autorité des marchés
financiers.
Droits des acquéreurs dans l’Île-du-Prince-Édouard
Le droit d’intenter une action en résolution ou en dommages-intérêts décrit dans la présente rubrique est conféré
par l’article 112 de la loi intitulée Securities Act (Île-du-Prince-Édouard). L’article 112 prévoit qu’en cas de
« présentation inexacte des faits » dans la présente notice d’offre, la personne qui achète des parts au cours de la
période de placement a le droit, même si elle ne s’est pas fiée à la présentation inexacte des faits, d’intenter une
action en dommages-intérêts contre le Fonds d’infrastructures et les personnes qui ont signé la notice d’offre. La
personne qui souscrit des parts au cours de la période de placement peut plutôt choisir d’intenter une action en
annulation contre le Fonds d’infrastructures. Aux fins de l’article 112, « présentation inexacte de faits » s’entend
d’une déclaration erronée au sujet d’un fait important; de l’omission de relater un fait important dont la
divulgation est exigée en vertu de la loi de l’Île-du-Prince-Édouard intitulée Securities Act; ou de l’omission de
relater un fait important dont la déclaration est requise pour que la déclaration ne soit pas fausse ou trompeuse,
compte tenu des circonstances dans lesquelles la déclaration a été faite.
Les droits d’action en résolution ou en dommages-intérêts sont assujettis aux prescriptions suivantes :
a)
les délais de prescription pour faire valoir les droits d’actions susmentionnés s’établissent
comme suit :
i)
dans le cas d’une action en annulation, le délai est de 180 jours à compter de la date de
l’opération qui a donné lieu à la cause d’action;
ii)
dans le cas d’une action autre qu’une action en annulation, le délai applicable est le
premier à échoir parmi les suivants :
(1)
(2)
180 jours après la date à laquelle le souscripteur a initialement eu connaissance
des faits qui ont donné lieu à la cause d’action;
trois ans après la date de l’opération qui a donné lieu à la cause d’action;
b)
une personne ne peut être tenue responsable si elle prouve que le souscripteur a acheté les parts
en ayant connaissance de la présentation inexacte des faits;
c)
une personne, à l’exclusion du Fonds d’infrastructures, ne peut être tenue responsable si elle
prouve l’un des éléments suivants :
i)
la notice d’offre a été transmise au souscripteur à son insu ou sans son consentement et
elle a promptement donné un avis raisonnable au Fonds d’infrastructures lui indiquant
- 46 -
que la notice a été envoyée à son insu et sans son consentement dès qu’elle a eu
connaissance de la transmission;
ii)
dès qu’elle a eu connaissance de l’existence d’une présentation inexacte des faits dans
la notice d’offre, la personne a retiré son consentement à son égard et a donné à
l’émetteur un avis raisonnable motivé de ce retrait;
iii)
à l’égard d’une partie de la notice d’offre présentée comme étant préparée sous
l’autorité d’un expert ou comme une copie ou un extrait d’un rapport, d’une déclaration
ou d’un avis d’un expert, la personne n’avait pas de motifs raisonnables de croire et ne
croyait pas, selon le cas :
(1)
(2)
qu’il y avait eu présentation inexacte des faits;
que la partie pertinente de la notice d’offre, selon le cas :
(A) ne reflétait pas fidèlement le rapport, la déclaration ou l’avis de l’expert,
(B) ne constituait pas une copie ou un extrait fidèle du rapport, de la déclaration
ou de l’avis de l’expert.
Si le souscripteur choisit d’intenter une action en annulation, il n’a plus le droit d’intenter une action en
dommages-intérêts.
Le montant pouvant être recouvré dans le cadre d’une action ne doit pas dépasser le prix auquel les parts
achetées par le souscripteur ont été offertes au public.
Dans une action en dommages-intérêts, le défendeur ne peut être tenu responsable de dommages-intérêts qu’il
prouve ne pas correspondre à la diminution du cours des parts attribuable à la présentation inexacte des faits.
Les droits d’action en annulation ou en dommages-intérêts prévus à l’article 112 ne portent pas atteinte aux
autres droits du souscripteur, mais s’y ajoutent.
Le présent résumé est assujetti aux dispositions de la loi intitulée Securities Act (Île-du-Prince-Édouard) ainsi
qu’aux règles et règlements pris en application de celle-ci, et les investisseurs éventuels doivent se reporter au
texte intégral de ces dispositions.
Droits des acquéreurs en Colombie-Britannique et à Terre-Neuve-et-Labrador
Les investisseurs en Colombie-Britannique et à Terre-Neuve-et-Labrador se voient conférer les mêmes droits
d’action en dommages-intérêts ou en annulation que les résidents de l’Ontario qui souscrivent des parts.
Les droits résumés précédemment s’ajoutent aux autres droits et recours que la loi confère aux investisseurs,
sans y déroger.
- 47 -
RÉPERTOIRE
Renseignements supplémentaires sur le Fonds d’infrastructures, ses conseillers et mandataires :
Bureau du Fonds d’infrastructures :
1501, avenue McGill College
Bureau 800
Montréal (Québec) H3A 3M8
Siège social du gestionnaire :
CORPORATION FIERA CAPITAL
1501, avenue McGill College
Bureau 800
Montréal (Québec) H3A 3M8
À l’attention de : Fiera Solutions aux investisseurs
Tél. : 514-954-3300
Numéro sans frais : 1-800-361-3499
Télécopieur : 514-954-5098
Courriel : [email protected]
Administrateur :
TRUST BANQUE NATIONALE INC.
1100, rue University, 12e étage
Montréal (Québec) H3B 2G7
Auditeurs :
PRICEWATERHOUSECOOPERS S.R.L./S.E.N.C.R.L.
1250, boul. René-Lévesque Ouest
Montréal (Québec) H3B 2G4
Conseiller juridique :
FASKEN MARTINEAU DUMOULIN S.E.N.C.R.L., S.R.L.
Tour de la Bourse
Bureau 3400, C.P. 242
800, Place Victoria
Montréal (Québec) H4Z 1E9
- 48 -
ANNEXE A
OFFRE DE SOUSCRIPTION DU FONDS FIERA COURT TERME PLUS
(PARTS DE CATÉGORIE IA ET PARTS DE CATÉGORIE IF)
Le texte qui suit constitue un sommaire des modalités d’un placement dans les parts de catégorie IA et IF du
FONDS FIERA COURT TERME PLUS (défini ci-après). Les parts de catégorie IA et les parts de catégorie IF du
Fonds sont conçues pour éventuellement fournir aux investisseurs l’accès au Fonds Fiera d’infrastructure privé
(le « Fonds d’infrastructures »). Les investisseurs éventuels sont priés de consulter la notice d’offre du Fonds
d’infrastructures (la « notice d’offre ») avant d’investir dans les parts de catégorie IA et les parts de
catégorie IF du Fonds. Les investisseurs éventuels sont priés de consulter leurs propres conseillers
professionnels quant aux conséquences fiscales et juridiques d’un placement dans le Fonds. À moins
d’indication contraire, tous les montants sont exprimés en dollars canadiens. Les expressions clés utilisées aux
présentes sans y être définies ont le sens qui leur est attribué dans la notice d’offre.
Le Fonds
Le fonds d’investissement offert aux présentes est le FONDS FIERA COURT TERME
PLUS (le « Fonds »).
Le Fonds est une fiducie à capital variable créée le 3 octobre 1994 sous le régime
des lois du Québec aux termes d’une convention de fiducie modifiée et mise à jour
datée du 15 mai 2012, dans sa version modifiée, mise à jour ou complétée à
l’occasion (la « convention de fiducie »). TRUST BANQUE NATIONALE INC.
(le « fiduciaire ») est le fiduciaire du Fonds, et CORPORATION FIERA CAPITAL
(« Fiera » ou le « gestionnaire ») est le gestionnaire du Fonds aux termes de la
convention de fiducie.
Catégories et parts
Les placements dans le Fonds sont représentés par des parts de fiducie d’une
catégorie du Fonds (les « parts »). Le Fonds est autorisé à avoir un nombre illimité
de catégories de parts (chacune, une « catégorie ») dont le gestionnaire peut établir
les modalités. Chaque part d’une catégorie représente une participation véritable
indivise dans les actifs nets du Fonds attribuables à cette catégorie de parts. Des
catégories supplémentaires pourraient être offertes à l’avenir selon des modalités
différentes, y compris en ce qui concerne les frais, la rémunération des courtiers et
les montants minimaux de souscription. Si la création de catégories de parts
supplémentaires du Fonds est susceptible de nuire aux porteurs des parts (les
« porteurs de parts ») d’une autre catégorie du Fonds, le gestionnaire avisera les
porteurs de parts par courrier ordinaire au moins 30 jours avant la date d’entrée en
vigueur de la modification.
Certains frais, y compris les frais de gestion et les passifs du Fonds, tels qu’ils sont
indiqués dans la présente notice d’offre ou déterminés par le fiduciaire ou le
gestionnaire à leur seule appréciation, sont attribués exclusivement à une catégorie
de parts particulière du Fonds (les « frais de la catégorie »).
Le placement
Deux catégories de parts du Fonds sont offertes aux termes de la présente offre de
souscription :
- 49 -
(i) Parts de catégorie IA : Les parts de catégorie IA sont conçues pour les
investisseurs qui ne sont pas admissibles à l’acquisition des parts de
catégorie IF. Tel qu’il est décrit dans la notice d’offre, au moment du
transfert (au sens donné à cette expression dans la notice d’offre), les parts
de catégorie IA pourront être rachetées par le gestionnaire et, dans un tel
cas, le produit de rachat, déduction faite des frais d’entrée, servira à la
souscription de parts de série A du Fonds d’infrastructures;
(ii) Parts de catégorie IF : Les parts de catégorie IF sont conçues pour les
investisseurs qui ont adhéré à un programme de services assortis de frais
ou à un programme intégré parrainé par un courtier et qui doivent payer
des frais annuels en fonction des actifs gérés plutôt que des commissions
sur chaque opération ou, à l’appréciation du gestionnaire, tout autre
investisseur pour lequel le gestionnaire n’engage aucuns frais de
placement. Tel qu’il est décrit dans la notice d’offre, au moment du
transfert (au sens donné à cette expression dans la notice d’offre), les parts
de catégorie IF pourront être rachetées par le gestionnaire et, dans un tel
cas, le produit de rachat, déduction faite des frais d’entrée, servira à la
souscription de parts de série F du Fonds d’infrastructures.
Les parts sont offertes en permanence aux investisseurs résidant dans une province
du Canada (les « territoires du placement ») aux termes des dispenses
d’établissement de prospectus applicables prévues dans la législation sur les
valeurs mobilières de chaque territoire du placement. Le gestionnaire se réserve le
droit d’accepter ou de refuser des ordres, de modifier le montant minimal des
placements dans une catégorie du Fonds, de permettre des distributions au
comptant à tous les investisseurs et de mettre fin au placement de parts d’une
catégorie du Fonds en tout temps et à l’occasion.
Toutes les sommes d’argent reçues avec un ordre refusé seront remboursées dans
les plus brefs délais à l’investisseur sans intérêt.
Prix
Les parts sont offertes à la valeur liquidative par part de la catégorie (définie
ci-après) calculée le jour d’évaluation (défini ci-après) applicable. Des fractions de
part comportant jusqu’à trois décimales seront émises.
Politique de placement
Objectif de placement fondamental
Le Fonds a pour objectif de placement d’assurer une protection maximale du
capital investi tout en offrant un rendement à court terme concurrentiel. Le
portefeuille consiste essentiellement en titres de créance d’émetteurs canadiens
dont la durée à l’échéance ne dépasse pas 365 jours.
Objectif de rendement
Le Fonds cherche à dégager un rendement total supérieur à celui de l’indice DEX
des bons du Trésor à 91 jours pendant une période d’un an.
- 50 -
Répartition cible
La répartition cible du portefeuille est la suivante :
Catégorie d’actif
Minimum
Maximum
Indice de
référence
Liquidités et
titres
du marché
monétaire
100 %
100 %
Indice DEX des
bons du Trésor à
91 jours
Placements autorisés
Liquidités et titres du marché monétaire
Le Fonds peut investir dans les titres suivants : les liquidités, les dépôts à vue, les
bons du Trésor, les billets à court terme, les obligations, les acceptations bancaires,
les effets publics, les dépôts à terme, les certificats de placement garantis ou autres
instruments financiers émis par des banques, des compagnies d’assurance, des
sociétés de fiducie ou des caisses d’épargne, le papier commercial, les coupons
détachés et les obligations à coupons détachés ainsi que les titres à taux variable
(rajusté au moins deux fois par année), le papier commercial adossé à des actifs
émis par des banques canadiennes (le papier commercial non structuré adossé à des
actifs assorti de facilités de liquidités de « style international », soit du PCAA
bancaire).
La durée moyenne des titres à court terme ne doit pas dépasser un an, et un
maximum de 10 % du portefeuille peut être investi dans des obligations, à
l’exclusion des titres à taux variable, comportant une échéance de 12 à 24 mois.
Les pondérations maximales de billets à taux variable sont les suivantes :
Émetteurs de billets à taux variable :
% maximal
Échéance
maximale
Gouvernement du Canada
30 %
3 ans
Banques ou sociétés par actions
15 %
Pondération maximale

Note de S&P de AA/AAA – 15 %
2 ans

Note de S&P de A
– 10 %
1 an
- 51 -
Tous les titres de sociétés doivent avoir obtenu une note de crédit minimale de
R1-faible ou l’équivalent par Dominion Bond Rating Services (DBRS) ou une
autre agence de notation. Le montant maximal investi dans une société émettrice ne
doit pas excéder 10 % de la valeur marchande des titres à court terme si sa note de
crédit est R1-moyen ou plus élevée, et 5 % si sa note de crédit est R1- faible.
Le gestionnaire peut conclure des contrats de mise en pension de titres et de prise
en pension de titres et des opérations de prêt de titres avec toute institution
financière ayant une note de crédit acceptable, pourvu que la valeur notionnelle
totale de ces instruments ne dépasse pas 5 % du Fonds.
Instruments dérivés
Il est possible d’utiliser des contrats à terme standardisés ou des contrats à terme de
gré à gré sur des devises pour des fins de couverture et de gestion de risques.
Fonds en gestion commune
Le Fonds peut investir dans les titres de véhicules d’investissement en gestion
commune comme des fonds communs de placement ou des fonds en gestion
commune (à capital variable ou fixe) gérés par le gestionnaire, l’un des membres
de son groupe ou une personne avec qui il a des liens (les « Fonds Fiera ») ou
encore conclure des opérations sur instruments dérivés dont les éléments sousjacents sont fondés sur de tels titres.
Le Fonds n’a réservé aucun pourcentage fixe de ses actifs aux fins d’investissement
dans les Fonds Fiera. Ce pourcentage pourra être compris entre 0 % et 100 % et de
tels investissements seront effectués de temps à autre au gré du gestionnaire du
Fonds.
Le Fonds n’investira dans les Fonds Fiera que lorsque ceci est conforme à la
politique de placement du Fonds. Lorsqu’une décision est prise d’investir des actifs
du Fonds dans les Fonds Fiera, le gestionnaire du Fonds choisira les Fonds Fiera en
fonction de différents critères, notamment leur convenance pour le Fonds, le style
de gestion, le rendement des placements, le risque et la volatilité.
Restrictions en matière de placement
Le Fonds ne doit ni emprunter ni utiliser les actifs du Fonds en garantie d’un prêt.
Cependant, le Fonds peut afficher un découvert imprévu à court terme si les
liquidités dont il dispose ne sont pas suffisantes pour couvrir un achat ou un rachat
de parts du Fonds.
Les achats sur marge et les ventes à découvert sont interdits.
- 52 -
Prêt de titres
Le Fonds peut conclure des conventions de prêt de titres écrites avec le dépositaire
des titres du Fonds. Une garantie qui correspond à au moins 102 % de la valeur
marchande des titres prêtés, cette valeur marchande étant évaluée en fonction du
cours quotidien, doit être conservée sous forme de titres liquides. Ce pourcentage
peut fluctuer en fonction d’exigences juridiques ou contractuelles. Le revenu
obtenu par suite d’opérations de prêt de titres est partagé entre le Fonds et son
dépositaire.
Le gestionnaire
Fiera est le gestionnaire du Fonds et est chargé de ses activités quotidiennes, dont
la gestion de son portefeuille de placements. Fiera est également le gestionnaire du
Fonds d’infrastructures.
Le siège social du gestionnaire est situé au 1501, avenue McGill College,
bureau 800, Montréal (Québec) H3A 3M8, et son bureau principal est situé au
1 Adelaide Street East, Suite 600, Toronto (Ontario) M5C 2V9. Le gestionnaire est
inscrit comme gestionnaire de portefeuille et courtier sur le marché dispensé dans
toutes les provinces et tous les territoires du Canada. Fiera est également inscrite
comme gestionnaire de fonds d’investissement dans les provinces d’Ontario et du
Québec. De plus, le gestionnaire est inscrit au Québec comme gestionnaire de
portefeuille d’instruments dérivés en vertu de la Loi sur les instruments dérivés
(Québec), et en Ontario et au Manitoba comme gestionnaire d’opérations sur
marchandises en vertu de la Loi sur les contrats à terme sur marchandises
(Ontario) et de la Loi sur les contrats à terme de marchandises (Manitoba). Le
gestionnaire est l’entreprise combinée qui a résulté de la fusion en 2010 de Fiera
Capital Inc. et de Sceptre Investment Counsel Limited, chacune ayant été créée
respectivement en 2003 et 1955. Avec prise d’effet le 2 avril 2012, le gestionnaire
a acquis les activités de Gestion de portefeuille Natcan inc. (« Natcan ») et a
changé sa dénomination pour Corporation Fiera Capital. Par suite de cette
opération, Banque Nationale du Canada, par l’entremise de Natcan, détient environ
35 % des actions en circulation du gestionnaire et, en date de la notice d’offre, une
option permettant d’acquérir des actions supplémentaires. Si cette option est
exercée intégralement, cette participation passerait à au plus 37,5 % des actions en
circulation du gestionnaire. Fiera est un gestionnaire financier indépendant inscrit
en bourse et doté d’un actif sous gestion d’environ 67 G$ en novembre 2013. Fiera
offre des solutions de placement de styles multiples par l’intermédiaire de
stratégies de placement diversifiées aux investisseurs institutionnels, aux clients
détenteurs de patrimoine et aux épargnants.
Le fiduciaire
Trust Banque Nationale Inc. est le fiduciaire du Fonds.
Évaluation
La valeur liquidative (la « valeur liquidative ») du Fonds correspond à la valeur
des actifs du Fonds, après déduction des passifs, et est calculée à une date
particulière conformément à la convention de fiducie du Fonds. Le gestionnaire
calculera la valeur liquidative du Fonds chaque jour ouvrable (un jour où la Bourse
de Toronto (« Bourse de Toronto ») est ouverte et qui n’est pas un jour férié au
Québec est appelé ci-après un « jour ouvrable ») (dans chaque cas, un « jour
d’évaluation »).
- 53 -
Le gestionnaire calculera également, chaque jour d’évaluation, la valeur liquidative
du Fonds attribuable à chaque catégorie de parts du Fonds (la « valeur liquidative
de la catégorie ») et la valeur liquidative par part de chaque catégorie de parts du
Fonds (la « valeur liquidative par part de la catégorie »).
Achat de parts
Les investisseurs peuvent être admis au Fonds ou peuvent acquérir des parts
supplémentaires chaque jour d’évaluation. Le gestionnaire doit recevoir du courtier
de l’investisseur les demandes de souscription pour les placements initiaux ou les
demandes de placement supplémentaires par l’entremise du réseau FundSERV
avant 16 h (heure de l’Est) le jour ouvrable précédant le jour d’évaluation
applicable. Toutes les souscriptions de parts de catégorie IA et de catégorie IF du
Fonds du marché monétaire doivent être effectuées par un placeur sur le réseau
FundSERV. Le gestionnaire n’acceptera aucune souscription directe. Les parts du
Fonds du marché monétaire ne peuvent être achetées qu’en dollars canadiens.
Les parts de catégorie IA et les parts de catégorie IF du Fonds du marché monétaire
sont offertes au moyen de FundSERV, le système d’inscription des ordres des
organismes de placement collectif. Les souscriptions de parts du Fonds du marché
monétaire doivent être effectuées par un placeur sur le réseau FundSERV sous le
code de fabricant se rapportant à Fiera Capital Corporation « FIA » et les codes
d’ordres suivants :
Parts de catégorie IA
parts de catégorie IF
« FIA285 »
« FIA385 »
Placement minimal
Le placement initial minimal dans le Fonds est de 25 000 $ pour toute catégorie.
Un investisseur qui effectue une souscription dans le Fonds comme « investisseur
admissible » est tenu d’aviser le gestionnaire si son statut change.
Rachats
Le Fonds du marché monétaire offre un droit limité de rachat aux porteurs de parts
de catégorie IA et de catégorie IF dont les parts n’ont pas été transférées dans le
Fonds d’infrastructures dans les deux ans de leur souscription. Ces rachats seront
uniquement honorés dans la mesure où le gestionnaire estime, à son seul gré, que
ces rachats ne compromettront d’aucune façon la capacité du Fonds
d’infrastructures d’honorer ses engagements de capitaux envers les Fonds sousjacents (y compris les Fonds Fiera Axium).
En plus ce qui précède, le gestionnaire peut, à l’occasion, à son gré, offrir un droit
limité de rachat aux porteurs de parts selon les conditions établies, à l’occasion, par
le gestionnaire.
La convention de fiducie du Fonds du marché monétaire prévoit que le
gestionnaire, à son seul gré, peut forcer le rachat des parts de catégorie IA et de
catégorie IF. Ces parts seraient rachetées à la valeur liquidative par part de la
catégorie.
- 54 -
Transfert de parts
Aucun transfert de parts du Fonds ne peut être effectué autrement que par l’effet de
la loi ou du consentement du gestionnaire. Les parts peuvent également être
soumises à certaines restrictions quant à leur revente aux termes des lois sur les
valeurs mobilières applicables.
Frais
Le Fonds acquittera les frais habituels et ordinaires relatifs à son exploitation, y
compris les frais administratifs, la rémunération et les frais de l’agent chargé de la
tenue des registres et agent des transferts, les honoraires du fiduciaire (le cas
échéant) et du dépositaire, les honoraires et frais d’audit, de comptabilité et ceux
des conseillers juridiques, les frais de communication, d’impression et d’envoi par
la poste, l’ensemble des frais associés à la vente ou au rachat de parts, y compris
les droits de dépôt (le cas échéant) et les frais de service des courtiers (sauf les
commissions de service des courtiers dont il est question ci-après, qui sont à la
charge du gestionnaire), les frais se rapportant à la remise de rapports financiers et
autres aux porteurs de parts et à la convocation et la tenue d’assemblées des
porteurs de parts, l’ensemble des impôts et des taxes, des cotisations ou autres
charges imposées par le gouvernement au Fonds, les intérêts débiteurs ainsi que
l’ensemble des courtages et autres frais concernant l’achat et la vente des actifs du
Fonds.
Frais de gestion
En contrepartie des services qu’il rend au Fonds, le gestionnaire recevra des frais
de gestion mensuels (les « frais de gestion ») du Fonds attribuables aux parts de
catégorie IA et de catégorie IF. Les frais de gestion sont, dans le cas de chaque
catégorie du Fonds, des frais de la catégorie attribuables à la catégorie en question.
Des frais de gestion annuels correspondant aux pourcentages suivants de la valeur
liquidative de la catégorie visée du Fonds, calculés et accumulés chaque jour
d’évaluation et payables mensuellement, sont imposés aux parts de catégorie IA et
de catégorie IF du Fonds :
Catégorie IA Catégorie IF
0,40 %
0,20 %
À l’occasion, le gestionnaire peut, à son entière appréciation, renoncer à une partie
ou à la totalité des frais de gestion qui lui sont payables par le Fonds.
Les frais de gestion sont assujettis aux taxes applicables, dont la TVQ (qui peut
dans certains cas être remboursée), la TPS et la TVH.
Rémunération des
courtiers
Les courtiers inscrits (les « courtiers ») qui placent les parts peuvent recevoir un
courtage pouvant aller jusqu’à 5 %, qui sera déduit de l’ordre de souscription et
versé par l’investisseur au courtier. Le courtage peut être négocié entre le courtier
et l’investisseur.
- 55 -
Le gestionnaire versera aux courtiers des commissions de service en contrepartie
des conseils et des services permanents fournis à l’égard des parts de catégorie IA.
Les commissions de service sont accumulées chaque jour d’évaluation et sont
versées tous les trimestres au taux annuel actuel de 0,20 % de la valeur liquidative
de la catégorie des parts de la catégorie IA détenues par les clients du courtier.
Distributions
Le Fonds compte distribuer un montant suffisant de revenu net et de gains en
capital réalisés nets, s’il y a lieu, aux porteurs de parts au cours de chaque année
civile pour s’assurer de ne pas être assujetti à l’impôt sur le revenu suivant la
Partie I de la Loi de l’impôt sur le revenu (Canada) (la « Loi de l’impôt »), après
avoir tenu compte de tous les reports de perte prospectifs. Toutes les distributions
seront versées en proportion de chaque catégorie à chaque porteur de parts inscrit à
la fermeture des bureaux le jour d’évaluation applicable. Le fiduciaire distribuera le
revenu net et les gains en capital réalisés nets du Fonds, le cas échéant,
mensuellement, le dernier jour d’évaluation de chaque mois civil, et aux autres
dates que le fiduciaire estime convenables. Les distributions seront investies dans
des parts du Fonds.
Conséquences fiscales
Les porteurs de parts éventuels devraient évaluer avec soin l’ensemble des
conséquences fiscales éventuelles d’un placement dans les parts et devrait consulter
leur conseiller en fiscalité avant de souscrire des parts.
Admissibilité aux fins de
placement
Les parts ne sont pas des placements admissibles pour les fiducies régies par des
régimes enregistrés d’épargne-retraite, des fonds enregistrés de revenu de retraite,
des régimes de participation différée aux bénéfices, des régimes enregistrés
d’épargne-invalidité, des régimes enregistrés d’épargne-études et des comptes
d’épargne libre d’impôt, au sens de la Loi de l’impôt, et ne devraient être détenues
dans de tels régimes.
Facteurs de risque
Le Fonds est soumis à divers facteurs de risque, dont les suivants (qui sont
expliqués en détail dans la notice d’offre du Fonds d’infrastructures) : (i) Risque de
placement général, (ii) Frais, (iii) Il ne s’agit pas d’un organisme de placement
collectif s’adressant au public, (iv) Les porteurs de parts n’ont aucun droit de
participer à la gestion, (v) Confiance envers le gestionnaire, (vi) Dépendance du
gestionnaire envers le personnel clé, (vii) Absence d’experts indépendants
représentant les porteurs de parts, (viii) Erreurs de négociation, (ix) Conjoncture
économique et du marché, et (x) Titres à revenu fixe.
Exercice
L’exercice du Fonds prendra fin le 31 décembre de chaque année.
Rapports
Les porteurs de parts recevront des états financiers annuels audités dans un délai de
90 jours de la fin de l’exercice et des états financiers semestriels non audités dans
les 60 jours suivant le 30 juin ou comme la loi le prescrit par ailleurs. Les rapports
intermédiaires supplémentaires aux porteurs de parts seront à l’appréciation du
gestionnaire. Le Fonds peut conclure d’autres ententes avec des porteurs de parts
qui peuvent donner le droit à ceux-ci de recevoir d’autres rapports. Les porteurs de
parts recevront tous les formulaires fiscaux requis dans le délai prescrit par la loi
applicable pour les aider à faire les déclarations de revenus nécessaires.
- 56 -
ANNEXE B
NOTICE D’INFORMATION CONFIDENTIELLE
SOCIÉTÉ EN COMMANDITE FIERA AXIUM INFRASTRUCTURE AMÉRIQUE DU NORD,
SOCIÉTÉ EN COMMANDITE FIERA AXIUM INFRASTRUCTURE CANADA II ET
FIERA AXIUM INFRASTRUCTURE US LIMITED PARTNERSHIP
AVIS IMPORTANT :
LA NOTICE D’INFORMATION CONFIDENTIELLE DE LA SOCIÉTÉ EN COMMANDITE FIERA
AXIUM INFRASTRUCTURE AMÉRIQUE DU NORD, DE LA SOCIÉTÉ EN COMMANDITE FIERA
AXIUM INFRASTRUCTURE CANADA II ET DE FIERA AXIUM INFRASTRUCTURE US LIMITED
PARTNERSHIP (LES « FONDS FIERA AXIUM ») JOINTE AUX PRÉSENTES (LA « NOTICE
D’INFORMATION CONFIDENTIELLE ») EST FOURNIE À TITRE INFORMATIF SEULEMENT.
VEUILLEZ NOTER QUE LA NOTICE D’INFORMATION CONFIDENTIELLE A ÉTÉ RÉDIGÉE EN
LANGUE ANGLAISE ET QU’AUCUNE VERSION FRANÇAISE N’EST DISPONIBLE.
NI LES PORTEURS DE PARTS DU FONDS FIERA COURT TERME PLUS NI LES PORTEURS DE
PARTS DU FONDS FIERA D’INFRASTRUCTURE PRIVÉ N’ONT DE DROITS AUX TERMES DE
LA NOTICE D’INFORMATION CONFIDENTIELLE.
CORPORATION FIERA CAPITAL (« FIERA CAPITAL ») A CONVENU DE PRÉSERVER LA
CONFIDENTIALITÉ DE CERTAINS DES RENSEIGNEMENTS REÇUS PAR FIERA AXIUM
INFRASTRUCTURE INC. (« FIERA AXIUM ») RELATIFS AUX FONDS FIERA AXIUM, Y
COMPRIS L’INFORMATION QU’ELLE PEUT RECEVOIR AU SUJET DE LA VALEUR
LIQUIDATIVE DE TOUT FONDS FIERA AXIUM ET L’INFORMATION AU SUJET DES ACTIFS
DÉTENUS PAR LES FONDS FIERA AXIUM. PAR CONSÉQUENT, FIERA CAPITAL NE PEUT
FOURNIR CES RENSEIGNEMENTS AUX PORTEURS DE PARTS DU FONDS FIERA COURT
TERME PLUS NI AUX PORTEURS DE PARTS DU FONDS FIERA D’INFRASTRUCTURE PRIVÉ.
DE PLUS, LES PORTEURS DE PARTS DU FONDS FIERA COURT TERME PLUS ET DU FONDS
FIERA D’INFRASTRUCTURE PRIVÉ N’AURONT PAS LE DROIT D’OBTENIR CES
RENSEIGNEMENTS AUPRÈS DE FIERA CAPITAL, DE FIERA AXIUM, DE L’UN OU L’AUTRE
DES FONDS FIERA AXIUM, OU AUPRÈS DU FONDS FIERA COURT TERME PLUS OU DU
FONDS FIERA D’INFRASTRUCTURE PRIVÉ.
[VOIR LE DOCUMENT CI-JOINT]
- 57 -
CONFIDENTIAL INFORMATION MEMORANDUM
FEBRUARY 2014
This confidential information memorandum (this “Memorandum”) has been prepared solely for assisting the special
partners of Fiera Axium Infrastructure North America Limited Partnership and of Fiera Axium Infrastructure Canada II
Limited Partnership and the limited partners of Fiera Axium Infrastructure US LP that are private funds of funds or
other similar private collective investment vehicles in meeting their disclosure requirements with respect to the Funds
(as defined below) to potential investors in said private funds of funds or private collective investment vehicles
(collectively, the “Private Collective Investment Vehicles”).
CONFIDENTIAL INFORMATION MEMORANDUM
FIERA AXIUM INFRASTRUCTURE NORTH AMERICA LP
FIERA AXIUM INFRASTRUCTURE CANADA II LP
FIERA AXIUM INFRASTRUCTURE US LP
This Memorandum is furnished on a confidential basis for informational purposes only with regard to Fiera
Axium Infrastructure North America Limited Partnership, Fiera Axium Infrastructure Canada II Limited
Partnership and Fiera Axium Infrastructure US LP (collectively the “Funds” and, each individually, a
“Fund”) and does not constitute an offer to sell or a solicitation to buy any of the LP Units (as defined
herein) referred to herein. While Fiera Axium Infrastructure Inc. (the “Canadian Manager”) or Fiera Axium
Infrastructure US Inc. (the “US Manager”, and together with the Canadian Manager, the “Managers”)
may authorize, from time to time, certain Private Collective Investment Vehicles to use this Memorandum
for purposes of their own disclosure requirements to their potential investors, none of the Managers or
any of their affiliates or any of their respective directors or officers make any representation, condition or
warranty, express or implied, to such prospective investors or to any member of the public regarding any
of the Funds, the LP Units or the advisability of investing indirectly in the LP Units nor do they assume
any responsibility for, the accuracy and completeness of the information contained herein or for the failure
to disclose any facts which may affect the significance or accuracy of any such information. Further, no
person is authorized to give any information or to make any representation not contained in this
Memorandum and the Managers, their affiliates and their respective directors and officers do not accept
any responsibility for any information not contained herein.
This Memorandum is intended solely for reference, it is not intended to be complete and is qualified in its
entirety by reference to the Limited Partnership Agreement of each of the Funds, as same may have
been amended, restated, supplemented and/or updated from time to time (individually, a “Limited
Partnership Agreement” and collectively, the “Limited Partnership Agreements”).
NONE OF THE POTENTIAL INVESTORS IN ANY OF THE PRIVATE COLLECTIVE INVESTMENT
VEHICLES NOR ANY MEMBER OF THE PUBLIC SHALL HAVE ANY RIGHTS UNDER THIS
MEMORANDUM. ANY REFERENCE TO THE TERM “INVESTOR” IN THIS MEMORANDUM IS
EMPLOYED IN ITS GENERAL SENSE AND TO MAKE REFERENCE TO PROSPECTIVE OR
EXISTING SPECIAL PARTNERS OR LIMITED PARTNERS INVESTING DIRECTLY IN THE FUNDS
AND ITS USE DOES NOT, IN ALL CASES, REFER TO ANY POTENTIAL OR EXISTING INVESTORS
OF ANY OF THE PRIVATE COLLECTIVE INVESTMENT VEHICLES.
The recipient of this Memorandum agrees that, except as otherwise provided in this
Memorandum, the information contained in this Memorandum is confidential and is for the
confidential use of only those persons to whom this Memorandum is delivered. Any reproduction
of this Memorandum, in whole or in part, or disclosure of its contents, without the express prior
written consent of the General Partner is strictly prohibited. By their acceptance of this
Confidential Information Memorandum
ii
Memorandum, recipients of this Memorandum agree that they will not transmit, reproduce, or
make available to anyone this Memorandum, or any information contained herein and that they
will not use such information for any purpose other than for making an investment decision
regarding the LP Units. This Memorandum should not be construed as containing investment,
legal or tax advice. Each prospective investor in any Private Collective Investment Vehicle should
consult its own investment, legal, tax, and other advisers regarding the financial, legal, tax, and
other aspects of an indirect interest in the LP Units. This Memorandum may not be photocopied,
reproduced or distributed to others without the prior written consent of each of the Managers. If
the recipient decides not to invest in the applicable Private Collective Investment Vehicle, it shall
promptly return all material received in connection herewith (including this Memorandum) to the
relevant Private Collective Investment Vehicle or to either of the Managers without retaining any
copies.
No person has been authorized to make any statement concerning any of the Funds or the LP Units
described in this Memorandum other than as set forth herein, and any such statements, if made, may not
be relied upon by prospective Limited Partners (as defined herein). The information contained in this
Memorandum has been compiled as of February 2014 unless otherwise stated herein. The delivery of
this Memorandum shall not, under any circumstances, create an implication that there has been no
change in the facts or the affairs of the Funds since February 2014 or that the information contained
herein is correct at any time subsequent to such date. Where the information is from third party sources,
the information is from sources believed to be reliable, but none of the Funds, the General Partners (as
defined herein), the Managers or any of their respective affiliates, or the partners, officers or employees
(as the case may be) of any of them, has independently verified any of the information contained herein
or assumes any liability for it.
An indirect investment in the LP Units involves significant risks, including, but not limited to, risks relating
to the nature of the LP Units, redemption risks, risks relating to the operating history of the Funds, risk
associated with key personnel, risk related to the portfolio target return being subject to market
conditions, regulatory risks, operating and technical risks, government contract risk, risks associated with
capital expenditures, demand and user risk, strategic assets risk, political risks, catastrophic and force
majeure risks, construction risks, risks related to labour actions, risks related to health and safety, risks
associated with potential environmental liabilities, counterparty risk, risks related to troubled infrastructure
assets, rate risk, risks related to lack of liquidity of infrastructure assets, documentation and other legal
risk, native title and indigenous rights risks, portfolio companies risk, risks related to availability of
investments, risks regarding dispositions of portfolio companies and portfolio investments, investment
structure risk, risks associated with concentration or lack of diversification, risks associated with control,
risks related to lack of ability to participate in management of the Funds, foreign currency risks, hedging
risks, tax related risks, residual risk of new infrastructure projects, joint venture or partnership
arrangement risks, political risks, risks associated with market and economic volatility, risks associated
with the potential failure to meet capital calls, risks related to future investments, risks associated with the
inability to invest committed capital, diligence risk, litigation risk, inflation risks, and risks related to the
lack of transferability of both the LP Units and a Fund’s holdings in its portfolio investments. Any
prospective investor in any Private Collective Investment Vehicle should carefully review and consider the
risk factors and uncertainties fully detailed in Section 7 entitled “Certain Risk Factors”, and other
information elsewhere in this Memorandum, prior to making an indirect investment in the LP Units.
Some of the statements contained in this Memorandum, including those relating to the Funds’ strategies
and other statements that are predictive in nature, that depend upon or refer to future events or
conditions, or that include words such as “may”, “shall”, “will”, “could”, “should”, “would”, “suspect”,
“outlook”, “expect”, “anticipate”, “intend”, “plan”, “believe”, “estimate”, “objective”, “feel”, “seek” and
“continue” (or the negative thereof) or similar words or expressions, are forward-looking statements within
the meaning of securities laws. Forward-looking statements include, without limitation, the information
concerning possible or assumed future results of operations of the Funds. These statements are not
historical facts but instead represent only the Managers’ expectations, estimates and projections
regarding future events. Although the Managers believe that the expectations reflected in such forwardConfidential Information Memorandum
iii
looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance
should not be placed on such statements.
Certain material factors or assumptions are applied in making forward-looking statements, and actual
results may differ materially from those expressed or implied in such statements. Factors that could
cause actual results to differ materially from expectations include, but are not limited to:

general business and economic conditions (including but not limited to performance
and volatility of equity markets, currency rates, investment losses and defaults,
market liquidity and creditworthiness of partners or co-venturers and counterparties);

risks related to the ability to effectively complete new acquisitions in the competitive
infrastructure space and to integrate acquisitions into existing operations;

changes in laws and regulations including tax laws;

foreign currency risk;

labour disruptions affecting the operating entities;

risks related to the high level of government regulation, both economic and noneconomic, affecting the business of the Funds and the resulting risk that changes in
legislation, regulations, government policy or the interpretation of any of these by a
regulator can have a significant impact on the performance of their business;

structures used for the investment in the infrastructure assets, such as joint ventures,
jointly-held corporations, partnerships and consortium arrangements which may
reduce the Funds’ control over the operations of the portfolio investments;

ability to identify investment opportunities and to dispose of such investments on
favourable terms;

legal and regulatory proceedings, including tax audits, tax litigation or similar
proceedings and including private legal proceedings; and

ability to retain key executives, employees and agents.
Additional information about material factors that could cause actual results to differ materially from
expectations and about material factors or assumptions applied in making forward-looking statements
may be found in this Memorandum in Section 7 entitled “Certain Risk Factors”. The Managers do not
undertake any obligation to update or release any revisions to these forward-looking statements to
reflect events or circumstances after the date of this Memorandum or to reflect the occurrence of
unanticipated events.
NOTHING HEREIN SHOULD BE CONSIDERED TO IMPOSE ON PROSPECTIVE INVESTORS ANY
LIMITATION ON DISCLOSURE OF THE TAX TREATMENT OR TAX STRUCTURE OF THE
TRANSACTIONS OR MATTERS DESCRIBED HEREIN. TO ENSURE COMPLIANCE WITH UNITED
STATED TREASURY DEPARTMENT CIRCULAR 230, MORRISON & FOERSTER LLP INFORMS YOU
THAT ANY ADVICE CONCERNING ONE OR MORE U.S. FEDERAL INCOME TAX ISSUES
CONTAINED IN THIS MEMORANDUM IS NOT INTENDED OR WRITTEN TO BE USED, AND
CANNOT BE USED, FOR THE PURPOSE OF (I) AVOIDING PENALTIES UNDER THE INTERNAL
REVENUE CODE OF 1986, AS AMENDED (THE “CODE”) OR (II) PROMOTING, MARKETING, OR
RECOMMENDING TO ANOTHER PARTY ANY TRANSACTION OR MATTER ADDRESSED HEREIN.
Confidential Information Memorandum
iv
TABLE OF CONTENTS
Page
Section 1.0 – Executive Summary ...............................................................................................................2
1.1.
1.2.
1.3.
1.4.
1.5.
1.6.
1.7.
The Funds ..........................................................................................................................2
The General Partners and the Managers ..........................................................................2
Combined Capabilities .......................................................................................................2
Investment Strategy and Policy..........................................................................................3
Fiera Axium Infrastructure Value Proposition ....................................................................4
Market Overview and Opportunity......................................................................................5
Summary of Principal Fund Terms.....................................................................................6
Section 2.0 – Market Overview and Opportunity .......................................................................................17
2.1.
2.2.
2.3.
2.4.
Market Overview ..............................................................................................................17
Market Opportunity...........................................................................................................19
Canadian Opportunity ......................................................................................................21
U.S. Opportunity...............................................................................................................34
Section 3.0 – Fund Structure .....................................................................................................................48
3.1.
3.2.
3.3.
Overview of the Funds .....................................................................................................48
Management of the Funds ...............................................................................................50
Investment Committee .....................................................................................................51
Section 4.0 – Fund Management ...............................................................................................................53
4.1.
4.2.
4.3.
4.4.
Management of the Funds ...............................................................................................53
Overview of the Managers ...............................................................................................53
Manager Value Proposition..............................................................................................55
Biographies ......................................................................................................................59
Section 5.0 – Investment Strategy and Process ........................................................................................70
5.1.
5.2.
Investment Strategy .........................................................................................................70
Investment Process..........................................................................................................73
Section 6.0 – Summary of Principal Terms................................................................................................79
6.1
6.2
6.3
Fiera Axium Infrastructure North America Limited Partnership .......................................79
Fiera Axium Infrastructure Canada II Limited Partnership ...............................................92
Fiera Axium Infrastructure US LP ..................................................................................106
Section 7.0 – Certain Risk Factors...........................................................................................................121
7.1.
7.2.
7.3.
7.4.
7.5.
7.6.
Risks Relating to the LP Units........................................................................................121
Risks Relating to the Funds ...........................................................................................124
Risks Relating to the Operations of the Funds ..............................................................126
Risks Relating to Investments in Infrastructure Assets Generally .................................134
Risks Relating to Taxation .............................................................................................138
Certain Conflicts of Interest............................................................................................141
Confidential Information Memorandum
v
1. Executive Summary
Confidential Information Memorandum
1
Section 1.0 – Executive Summary
Section 1.0 – Executive Summary
1.1.
The Funds
The funds whose activities are described in this Confidential Information Memorandum consist of Fiera
Axium Infrastructure North America Limited Partnership (the “North American Fund”), Fiera Axium
Infrastructure Canada II Limited Partnership (the “Canadian Fund”) and Fiera Axium Infrastructure US LP
(the “US Fund”) (collectively the “Funds” and, each individually, a “Fund”). Each of the North American
Fund and the Canadian Fund is established as a limited partnership formed pursuant to the laws of the
Province of Québec. The US Fund is established as a limited partnership formed pursuant to the laws of
the State of Delaware.
1.2.
The General Partners and the Managers
Fiera Axium Infrastructure North America Partner Inc. (the “North American General Partner”), a
corporation formed under the laws of Canada, is a wholly-owned subsidiary of Fiera Axium Infrastructure
Inc. (the “Canadian Manager”) and is the General Partner of the North American Fund.
Fiera Axium Infrastructure Canada Partner Inc. (the “Canadian General Partner”), a corporation formed
under the laws of Canada, is a wholly-owned subsidiary of the Canadian Manager and is the General
Partner of the Canadian Fund.
Fiera Axium Infrastructure US Partner LLC (the “US General Partner”), a limited liability company formed
under the laws of the State of Delaware, is the General Partner of the US Fund and is a subsidiary of
Fiera Axium Infrastructure US Inc. (the “US Manager” and, together with the Canadian Manager, the
“Managers”). The US Manager is a corporation formed under the laws of the State of Delaware, and is a
subsidiary of the Canadian Manager.
The North American Fund and the Canadian Fund are managed by the Canadian Manager, and the US
Fund is managed by the US Manager, pursuant to management services agreements whereby the
Canadian General Partner, the North American General Partner and the US General Partner have
delegated to their respective managers substantially all of their management rights and certain
obligations under their respective Limited Partnership Agreement.
The Canadian Manager is an independent infrastructure fund manager dedicated to investing in core
infrastructure assets. The firm was established in 2008 as a corporation under the laws of Canada, and is
currently the manager of an exclusively Canadian-focused, privately-held closed-end infrastructure fund Fiera Axium Infrastructure Canada LP (“FAICLP”).
Limited partners in FAICLP comprise prominent Canadian institutional investors, pension plans and high
net worth individuals. FAICLP is focused on both operating and late-stage greenfield investment
opportunities, and seeks to make equity investments in energy, transportation and social infrastructure
assets across Canada.
1.3.
Combined Capabilities
The Managers combine the capabilities of a group of professionals with extensive infrastructure
development and management backgrounds, with the fund management resources and expertise of one
of Canada’s leading independent investment management firms in Fiera Capital Corporation (“Fiera
Capital”).
Confidential Information Memorandum
2
Section 1.0 – Executive Summary
The Managers are jointly controlled by Fiera Capital Corporation and Axium Infrastructure Management
Inc.
With approximately $67 billion in assets under management (as at September 30, 2013), Fiera Capital is
a Canadian leader in investment management that is renowned for its excellence in portfolio
management and innovative solutions. Fiera Capital is one of only a handful of independent investment
firms providing extensive expertise in Canadian active and structured fixed income, Canadian and foreign
equity, asset allocation and non-traditional investment solutions through a broad range of strategies.
With offices in Montréal, Toronto, Calgary, Vancouver, Halifax and New York, Fiera Capital has over 300
employees and benefits from the expertise and diversified experience of approximately 100 investment
professionals servicing a highly diversified clientele comprised of pension funds, foundations, religious
and charitable organizations, high net worth individuals, financial institutions, mutual funds and managed
asset platforms.
Axium Infrastructure Management Inc. is a holding vehicle established and owned by the President and
Chief Executive Officer of Fiera Axium Infrastructure Inc., Mr. Pierre Anctil, a long time infrastructure
investment professional.
Each of the Managers has assembled a highly-qualified team of infrastructure investment specialists with
decades of combined experience acquiring, developing, financing, operating and managing infrastructure
assets and companies. Management team members comprise individuals with diverse backgrounds
benefiting from a combination of strategic, technical, financial, legal and operational skills necessary to
execute on investment strategies and develop and manage infrastructure assets.
1.4.
Investment Strategy and Policy
Fiera Axium Infrastructure aims to achieve favourable risk-adjusted returns over the long-term by
assembling a diversified portfolio of infrastructure assets through employing an investment strategy that
entails a disciplined investment approach and a well-defined investment process.
The North American Fund will invest in limited partnership units (“LP Units”) of the Canadian Fund and
the US Fund (including indirectly), and will generally seek to achieve a ratio of approximately 50% of its
aggregate NAV in the LP Units of each of the Canadian Fund and the US Fund, provided that these ratios
will not govern how the North American Fund deploys its capital at any time and that no assurance can be
given that these holding rates will be achieved or maintained.
The investments to be made by the Canadian Fund will be made only in assets located within Canada.
No more than 60% of total aggregate capital commitments to the Canadian Fund will be invested in
assets located in a single province in Canada. The investments to be made by the US Fund will be made
only in assets located within the U.S. The Canadian and US Funds’ preferred investment position will
typically range from 20% to 50% of equity ownership in assets, thereby achieving strong influence or joint
control over investments. The Canadian and US Funds will typically invest alongside reputable
participants in the infrastructure sector, which may include other equity sponsors and / or industrial /
strategic partners. In some cases, the Canadian and US Funds may take majority or larger equity
ownership positions (up to 100% of the equity) in assets. Individual equity investments are expected to
range in size from $20 million to $75 million, and investments will typically be held through limited liability,
tax flow-through (where possible), sole-purpose vehicles. For each of the Canadian Fund and the US
Fund, no more than the greater of (i) 20% of total commitments or (ii) $75 million will be invested in a
single portfolio investment.
At any given time, no more than 40% of total aggregate capital commitments for any Fund will be
invested in greenfield portfolio investments, being investments which are not operating and generating
cash flows at the time the investment is completed. Furthermore, with regards to both the Canadian Fund
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Section 1.0 – Executive Summary
and the US Fund, no investment will be made in projects considered to be non environmentally-friendly,
projects considered to incorporate technological risk components, senior debt securities or assets whose
shares are publicly traded (other than in cases of “take-private” transactions).
As a matter of policy, the Managers will only cause the Funds to invest in projects whose management
upholds and demonstrates a principle of strong and healthy labour relations with their employees and
labour unions to the extent that employees are unionized. Investment will not be made in assets that are
considered not to have favourable relations with employee groups, or which do not support fair wage and
employment practices. Specifically with respect to greenfield projects, the Funds will only invest in
projects where it is expected that the management thereof will not purposely or actively exclude or reduce
the number of unionized employees. Furthermore, each of the Funds is committed to ensuring workplace
safety on all its projects, and particular focus and attention is placed on health and safety initiatives,
particularly in greenfield projects under construction.
1.5.
Fiera Axium Infrastructure Value Proposition
As an independent portfolio management firm, Fiera Axium Infrastructure Inc. offers a unique value
proposition which is supported by the following distinguishing features:
Experienced Team of Professionals:

Management team comprises infrastructure investment professionals benefiting from decades of
combined experience acquiring, developing, financing, operating and managing infrastructure assets
and companies in North America and abroad.
Specialized Technical Expertise:

The Managers employ professionals with expertise not only from a financial standpoint (debt, equity,
financial advisory), but also deep technical expertise (e.g. construction, engineering and asset
management).

The Managers’ multi-disciplined approach and diverse background facilitates grass roots knowledge
of the infrastructure asset class and a fundamental understanding of key drivers of performance.
Active Asset Management Approach:

The management team has a proven track record of operating and maintaining assets and managing
infrastructure companies.

The Funds’ investment process is focused on active asset management, with specific emphasis on
optimizing asset performance levels.
Independence:

The Managers are independent entities that are not sponsored or affiliated with an investment bank
or debt provider, thereby ensuring that the capital structure of each investment is optimized.
Alignment of Interests:

Management team members own approximately 50% of the Managers. Each Manager’s respective
ownership structure strongly aligns the interests of its management team with those of the limited
partners in the Funds.

The Managers and/or their affiliates will commit to invest 1% of total aggregate capital commitments
to the Funds.

The management team’s incentive compensation is based solely on the performance of the
Managers and the Funds.
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Section 1.0 – Executive Summary
Access to Deal Flow:

Management team members have developed longstanding relationships with a wide range of market
participants including industrial partners, developers, operators, financial institutions, government
entities and regulatory authorities. These relationships and partner networks provide access to highquality deal flow.

The Funds are uniquely positioned to partner with both North American and international
infrastructure companies seeking equity capital and local market support.

Ability to leverage existing partner networks cross-border between Canada and the U.S. provides for
synergies in facilitating the establishment of high-quality deal flow.
North American Focus:

1.6.
Infrastructure investment is inherently local by nature, as geographic familiarity and unique regional
and local knowledge play a critical role in the origination, execution and management of investments.
The Managers are unique in this respect, as team members benefit from years of experience
transacting in the Canadian and U.S. marketplace.
Market Overview and Opportunity
Infrastructure assets comprise a range of essential facilities and services that are inherently fundamental
to social and economic prosperity. These tangible assets can be grouped to include energy infrastructure
(power generation and transmission, pipelines, gas collection and distribution systems), transportation
infrastructure (roads, bridges, mass transit systems, air and sea ports) and social infrastructure (hospitals,
schools, courthouses, institutional buildings).
It is estimated that significant investment in infrastructure is required in Canada and the U.S. over the
coming years, with necessary investment to maintain and replace existing assets valued at several trillion
1
dollars. The North American infrastructure sector is expected to generate a growing number of
investment opportunities arising from assets that will be procured through government-led efforts, as well
as assets that are currently privately-owned.
Due to historic under-investment and growing usage and neglect, infrastructure deterioration across many
jurisdictions has reached unprecedented levels. Significant expenditure is needed to modernize aging
asset bases and develop new infrastructure to support growth. Governments across the globe recognize
the magnitude of the infrastructure deficit and the role that vital infrastructure assets play in supporting
social prosperity and advancing economic productivity. With continued mounting pressure on government
budgets at all levels, reliance on private capital and adoption of alternative procurement models has
become increasingly prevalent. Given fiscal constraints and the limited capacity of the public sector to
raise taxes and/or increase existing levels of indebtedness, the trend towards the utilization of private
capital to fund essential public infrastructure is expected to continue.
In recent years, the North American infrastructure sector has exhibited a number of private-to-private
transactions, mainly in the form of mergers, acquisitions and privatizations. Regulatory changes and
restructuring trends are anticipated to continue to create acquisition opportunities arising in assets
currently owned and operated by industry participants facing capital constraints.
Infrastructure has become an increased area of focus among many long-term investors, such as pension
plans and institutional investors, seeking alternative investments with income-oriented returns and
portfolio diversification benefits. The Managers believe the asset class offers these investors an attractive
1
Infrastructure to 2030 (volume 2): mapping policy for electricity, water and transport, Organisation for Economic Co-operation and
Development, 2007: www.oecd.org.
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Section 1.0 – Executive Summary
risk/return proposition and direct exposure to investments that provide an appropriate match for their
liabilities.
Infrastructure is a unique asset class underpinned by a combination of the following key characteristics:

Stable and predictable cash flows;

Provision of essential services;

Natural monopolistic characteristics;

Relatively stable demand;

Inflation protection (in varying degrees, indirectly or directly);

Low correlation to other asset classes; and

Long-term investment profile.
1.7.
Summary of Principal Fund Terms
The information provided below has been presented as a summary and is qualified in its entirety by
reference to Section 6 – “Summary of Principal Fund Terms” herein.
Fiera Axium Infrastructure North America Limited Partnership
The Fund

Fiera Axium Infrastructure North America Limited Partnership (the “North
American Fund”, or in this table, the “Fund”).
Fund
Currency

Canadian dollars (C$).
Fund
Structure

Open-ended limited partnership established as a North American “feeder” fund,
which will hold limited partnership units in two separate open-ended country funds
– Fiera Axium Infrastructure Canada II LP and Fiera Axium Infrastructure US LP.

Limited Partners may subscribe for admission as a Limited Partner of the Fund,
or may elect to invest directly in either or both of Fiera Axium Infrastructure
Canada II LP (the “Canadian Fund”) or Fiera Axium Infrastructure US LP (the
“US Fund”) (in addition to, or in lieu of investing in the North American Fund)
through capital commitments made to such Fund (each a “Capital
Commitment”) .
General
Partner

Fiera Axium Infrastructure North America Partner Inc. (a corporation incorporated
under the Canada Business Corporations Act), a subsidiary of Fiera Axium
Infrastructure Inc.
Manager

Fiera Axium Infrastructure Inc. (a corporation incorporated under the Canada
Business Corporations Act).
Fund
Objective

The Fund’s objective is to generate attractive risk-adjusted returns primarily
through equity, quasi equity, convertible and subordinated debt and equity-related
investments in infrastructure assets located in Canada or the U.S. made indirectly
through the US Fund and the Canadian Fund.
Target Return

The Fund will target an internal rate of return (“IRR”) for the portfolio of 9% to
12% to Limited Partners, after the General Partner’s management fees, incentive
fees and other Fund expenses.
Manager
Commitment

As part of any Vintage (as defined herein), the Manager or its affiliates will commit
to invest an amount such that it shall have at all times (with its affiliates)
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Section 1.0 – Executive Summary
aggregate capital commitments to the Funds equal to at least 1% of the total
aggregate capital commitments made by all limited partners in the Funds.

The Fund will have an indefinite term (subject to the terms and conditions of the
Limited Partnership Agreement).

The Fund will be authorized to accept additional Capital Commitments
indefinitely, subject to the right of the General Partner to decide to cease or
suspend the acceptance of Capital Commitments and provided that approvals
shall be required to accept further Capital Commitments upon the Fund having
reached a threshold of C$1,000,000,000 and of C$1,500,000,000.

Notwithstanding the indefinite fund term, after a period of five (5) years from the
anniversary date of the initial closing date, a 75% majority of at least two (2)
Limited Partners may vote to fix an end date to the Fund Term.
Drawdown of
Commitments

The North American General Partner will drawdown Capital Commitments from
those Limited Partners who have an unpaid outstanding Capital Commitment (an
“Undrawn Capital Commitment”) on a pro rata basis based on the amount of
the respective Capital Commitments made by each such Limited Partner to the
North American Fund, giving priority to earlier Vintages in a manner fully
described in the Limited Partnership Agreement.
Transfer of LP
Units

Subject to a Limited Partner’s redemption right, no Limited Partner will be
permitted to withdraw from the Fund.

Transfer of LP Units between Limited Partners or affiliates of Limited Partners will
be accepted, subject to certain limitations. Transfers to third parties are subject to
General Partner approval, which cannot be unreasonably denied.

During certain periods, a Limited Partner may request that its LP Units be
redeemed by the Fund on the next redemption date determined by the General
Partner of the Fund (each, a “Redemption Date”).

Aggregate redemptions in a calendar year generally shall not exceed 20% of the
Fund NAV. If redemption requests represent more than 20% of the Fund NAV on
an annual basis or under other limited circumstances provided in the relevant
Limited Partnership Agreement, the Fund shall honour redemption requests on a
pro rata basis subject to certain restrictions under the Fund’s Limited Partnership
Agreement.

The redemption of LP Units is subject to a redemption discount in the first five (5)
years of their subscription (the “Redemption Discount”). The Redemption
Discount to NAV for LP Units redeemed in the first year will be 7.5%, decreasing
by 1.5% each year thereafter (i.e. 6.0% in year 2, 4.5% in year 3, etc.).

The Fund expects to distribute the majority of cash flow available for distribution
and not retain significant cash balances in excess of prudent operational and
cash reserves.

Regardless of when any Limited Partner’s Capital Commitment is drawn down,
each Limited Partner will be entitled, pro rata with other Limited Partners based
on number of LP Units owned, to all distributions made by the Fund.

The Fund will bear all costs, disbursements, fees and expenses incurred in
connection with its formation and offering, including, without limitation, all
expenses and fees incurred in connection with the preparation and filing of
organizational documents, and the offering, sale and issuance of the LP Units of
the Fund (the “Offering and Organizational Expenses”).

Each Limited Partner will pay an organizational cost-sharing contribution (the
Fund Term
Redemption
Right and
Redemption
Discount
Distributions
Offering and
Organization
Expenses and
Organizational
Cost-Sharing
Contribution
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Section 1.0 – Executive Summary
“Organizational Cost-Sharing Contribution”) to the Fund equal to 0.3% of
Capital Commitments in order to (i) reimburse the General Partner and the
Manager for Offering and Organizational Expenses assumed by them and (ii)
cover the costs and expenses associated with the completion of a Limited
Partner’s Capital Commitment. The balance of such Organizational Cost-Sharing
Contribution will be kept by the Fund for general partnership purposes.
Commitment
Fee and
Management
Fee

The Fund will be paid annual commitment fees as follows:
o 0.75% “Commitment Fee” on all capital committed but not yet
invested, which is applicable only during the first year following the
acceptance date of a Limited Partner’s Capital Commitment.
o
Incentive Fee
0.50% “Commitment Fee” on all capital committed but not yet
invested, which is applicable only during the second year following
the acceptance date of a Limited Partner’s Capital Commitment.

The Manager charges a Management Fee to Limited Partners ranging from
1.45% to 0.75%, varying in relation to the amount of the Capital Commitment
made and the passage of time (the “Management Fee”).

On each of the 10 and 11 anniversary of its Capital Commitment and as of the
th
later of the calendar year during which the 12 anniversary of its Capital
Commitment occurs and the calendar year during which the distributions actually
received by it shall be at least equal to the capital contributions made pursuant to
such Capital Commitment occurs, a Limited Partner shall pay to the General
Partner an annual portion of an “Incentive Fee”, based on a hypothetical
liquidation of all Portfolio Investments on each such anniversary date at their NAV
(the “Incentive Fee”). The annual portion of such Incentive Fee will be equal to
one third of the Incentive Fee calculated for each such anniversary date using
actual and deemed distributions, by notionally allocating such amounts between
the Limited Partner and the General Partner as follows:
i.
first, 100% to the Limited Partner until the cumulative amount distributed
to the Limited Partner is equal to the aggregate amount of all capital
contributions made by the Limited Partner at or prior to the time of such
distribution;
ii.
second, 100% to the Limited Partner until the cumulative amount
distributed to the Limited Partner would provide the Limited Partner with
an IRR of 8% on their capital contribution;
iii.
third, 50% retained by the Limited Partner and 50% distributed to the
General Partner until the cumulative amount distributed to the General
Partner is equal to 15% of the aggregate of all amounts distributed to,
and retained by the Limited Partner under paragraph (ii) above and this
paragraph (iii);
iv.
thereafter, 85% to the Limited Partner and 15% to the General Partner.

Allocations to the General Partner pursuant to paragraphs (iii) and (iv) are
together referred to as the “Incentive Fee” and one third of the amount so
calculated will be paid to the General Partner as of each Incentive Fee payment
date.

Should any Limited Partner exercise its right to have any of its LP Units
redeemed before the payment in full of the Incentive Fee, the Incentive Fee (or
the balance thereof) will be determined as at the date of redemption (taking into
account the applicable Redemption Discount) and paid out using redemption
proceeds.
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Section 1.0 – Executive Summary
Valuation

In the event the Fund is wound-up before the payment in full of the Incentive Fee,
the Incentive Fee payable will be determined as at that date and paid out using
wind-up proceeds.

The General Partner and the Manager will prepare a fair market valuation of the
NAV per LP Unit on a quarterly basis which will be reviewed by a partner of the
corporate finance group of a major accounting firm appointed by the General
Partner as a third-party “Independent Valuator”.

On an annual basis (as at June 30), the General Partner and the Manager will
prepare a fair market valuation of the NAV of the Fund using a methodology that
shall have been approved in accordance with the Limited Partnership Agreement
and will submit such NAV to the Independent Valuator for review. The
Independent Valuator shall review the fair market valuation calculated and
reported by the General Partner and the Manager using the same methodology
mentioned above and shall, prior to September 30 of each year, provide an
independent valuation report addressed to the Limited Partners confirming
whether the said valuation is acceptable as being within a range of acceptable
values.

The Fund’s independent auditors will also audit the year-end NAV.
Fiera Axium Infrastructure Canada II Limited Partnership
The Fund

Fiera Axium Infrastructure Canada II Limited Partnership (the “Canadian Fund”,
or in this table, the “Fund”).
Fund
Currency

Canadian dollars (C$).
Fund
Structure

Open-ended limited partnership established for purposes of completing and
holding investments in Canadian assets. Limited Partners electing to invest in the
Fund may do so through capital commitments to such Fund (each a “Capital
Commitment”).
General
Partner

Fiera Axium Infrastructure Canada Partner Inc. (a corporation incorporated under
the Canada Business Corporations Act), a subsidiary of Fiera Axium
Infrastructure Inc.
Manager

Fiera Axium Infrastructure Inc. (a corporation incorporated under the Canada
Business Corporations Act).
Fund
Objective

The Fund’s objective is to generate attractive risk-adjusted returns primarily
through equity, quasi equity, convertible and subordinated debt and equity-related
investments in Infrastructure Assets (as defined herein) located in Canada.

The Fund seeks to invest in core Infrastructure Assets.

“Infrastructure Assets” include, without limitation:
i.
transportation assets, including without limitation roads, tunnels, bridges,
air and sea ports and mass transit systems;
ii.
energy assets, including without limitation power generation, transmission
and distribution systems, pipelines and gas collection and distribution
systems; and
iii.
social assets, including without limitation hospitals and other medical care
facilities, schools, courthouses and other institutional buildings.
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Section 1.0 – Executive Summary
Target Return

The Fund will target an internal rate of return (“IRR”) for the portfolio of 9% to
12% to Limited Partners, after the applicable management fees, incentive fees
and other Fund expenses.
Manager
Commitment

As part of any Vintage (as defined herein), the Manager or its affiliates will commit
to invest an amount such that it shall have at all times (with its affiliates)
aggregate capital commitments to the Funds equal to at least 1% of the total
aggregate capital commitments made by all Limited Partners in the Funds.
Fund Term

The Fund will have an indefinite term (subject to the terms and conditions of the
Limited Partnership Agreement).

The Fund will be authorized to accept additional Capital Commitments
indefinitely, subject to the right of the General Partner to decide to cease or
suspend the acceptance of Capital Commitments and provided that approvals
shall be required to accept further Capital Commitments upon the Fund having
reached a threshold of C$1,000,000,000 and of C$1,500,000,000.

Notwithstanding the indefinite fund term, after a period of five (5) years from the
anniversary date of the initial closing date, a 75% majority of at least two (2)
Limited Partners and/or holders of Feeder Partnership Special Voting Interests
(as defined herein) of the Canadian Fund may vote to fix an end date to the Fund
Term.
Drawdown of
Commitments

The General Partner will drawdown Capital Commitments from those Limited
Partners who have an unpaid outstanding Capital Commitment (an “Undrawn
Capital Commitment”) on a pro rata basis based on the amount of the
respective Capital Commitments made by each such Limited Partner to the
Canadian Fund, giving priority to earlier Vintages in a manner fully described in
the Limited Partnership Agreement.
Transfer of LP
Units

Subject to a Limited Partner’s redemption right, no Limited Partner will be
permitted to withdraw from the Fund.

Transfer of LP Units between Limited Partners or affiliates of Limited Partners will
be accepted, subject to certain limitations. Transfers to third parties are subject
to General Partner approval, which cannot be unreasonably denied.

During certain periods, a Limited Partner may request that its LP Units be
redeemed by the Fund on the next redemption date determined by the General
Partner of the Fund (each, a “Redemption Date”).

Aggregate redemptions in a calendar year generally shall not exceed 20% of the
Fund NAV. If redemption requests represent more than 20% of the Fund NAV on
an annual basis or under other limited circumstances provided in the relevant
Limited Partnership Agreement, the Fund shall honour redemption requests on a
pro rata basis subject to certain restrictions under the Fund’s Limited Partnership
Agreement.

The redemption of LP Units is subject to a redemption discount in the first five (5)
years of their subscription (the “Redemption Discount”). The Redemption
Discount to NAV for LP Units redeemed in the first year will be 7.5%, decreasing
by 1.5% each year thereafter (i.e. 6.0% in year 2, 4.5% in year 3, etc.).

The Fund expects to distribute the majority of cash flow available for distribution
and not retain significant cash balances in excess of prudent operational and
cash reserves.

Regardless of when any Limited Partner’s Capital Commitment is drawn down,
each Limited Partner will be entitled, pro rata with other Limited Partners based
Redemption
Right and
Redemption
Discount
Distributions
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10
Section 1.0 – Executive Summary
on number of LP Units owned, to all distributions made by the Fund.
Offering and
Organization
Expenses and
Organizational
Cost-Sharing
Contribution

The Fund will bear all costs, disbursements, fees and expenses incurred in
connection with its formation and offering, including, without limitation, all
expenses and fees incurred in connection with the preparation and filing of
organizational documents, and the offering, sale and issuance of the LP Units of
the Fund (the “Offering and Organizational Expenses”).

Each Limited Partner will pay an organizational cost-sharing contribution (the
“Organizational Cost-Sharing Contribution”) to the Fund equal to 0.3% of
Capital Commitments in order to (i) reimburse the General Partner and the
Manager for Offering and Organizational Expenses assumed by them and (ii)
cover the costs and expenses associated with the completion of a Limited
Partner’s Capital Commitment. The balance of such Organizational Cost-Sharing
Contribution will be kept by the Fund for general partnership purposes.
Commitment
Fee and
Management
Fee

The Fund will be paid annual commitment fees as follows:
o 0.75% “Commitment Fee” on all capital committed but not yet
invested, which is applicable only during the first year following the
acceptance date of a Limited Partner’s Capital Commitment.
o
Incentive Fee
0.50% “Commitment Fee” on all capital committed but not yet
invested, which is applicable only during the second year following
the acceptance date of a Limited Partner’s Capital Commitment.

The Manager charges a Management Fee to Limited Partners ranging from
1.45% to 0.75%, varying in relation to the amount of the Capital Commitment
made and the passage of time (the “Management Fee”).

On each of the 10 and 11 anniversary of its Capital Commitment and as of the
th
later of the calendar year during which the 12 anniversary of its Capital
Commitment occurs and the calendar year during which the distributions actually
received by it shall be at least equal to the capital contributions made pursuant to
such Capital Commitment occurs, a Limited Partner shall pay to the General
Partner an annual portion of an “Incentive Fee”, based on a hypothetical
liquidation of all Portfolio Investments on each such anniversary date at their NAV
(the “Incentive Fee”). The annual portion of such Incentive Fee will be equal to
one third of the Incentive Fee calculated for each such anniversary date using
actual and deemed distributions, by notionally allocating such amounts between
the Limited Partner and the General Partner as follows:
i.
first, 100% to the Limited Partner until the cumulative amount distributed
to the Limited Partner is equal to the aggregate amount of all capital
contributions made by the Limited Partner at or prior to the time of such
distribution;
ii.
second, 100% to the Limited Partner until the cumulative amount
distributed to the Limited Partner would provide the Limited Partner with
an IRR of 8% on their capital contribution;
iii.
third, 50% retained by the Limited Partner and 50% distributed to the
General Partner until the cumulative amount distributed to the General
Partner is equal to 15% of the aggregate of all amounts distributed to,
and retained by the Limited Partner under paragraph (ii) above and this
paragraph (iii);
iv.
thereafter, 85% to the Limited Partner and 15% to the General Partner.

Allocations to the General Partner pursuant to paragraphs (iii) and (iv) are
together referred to as the “Incentive Fee” and one third of the amount so
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11
Section 1.0 – Executive Summary
calculated will be paid to the General Partner as of each Incentive Fee payment
date.
Valuation

Should any Limited Partner exercise its right to have any of its LP Units
redeemed before the payment in full of the Incentive Fee, the Incentive Fee (or
the balance thereof) will be determined as at the date of redemption (taking into
account the applicable Redemption Discount) and paid out using redemption
proceeds.

In the event the Fund is wound-up before the payment in full of the Incentive Fee,
the Incentive Fee payable will be determined as at that date and paid out using
wind-up proceeds.

The General Partner and the Manager will prepare a fair market valuation of the
NAV per LP Unit on a quarterly basis which will be reviewed by a partner of the
corporate finance group of a major accounting firm appointed by the General
Partner as a third-party “Independent Valuator”.

On an annual basis (as at June 30), the General Partner and the Manager will
prepare a fair market valuation of the NAV of the Fund using a methodology that
shall have been approved in accordance with the Limited Partnership Agreement.
The Independent Valuator shall review the fair market valuation calculated and
reported by the General Partner and the Manager using the same methodology
mentioned above and shall, prior to September 30 of each year, provide an
independent valuation report addressed to the Limited Partners confirming
whether the said valuation is acceptable as being within a range of acceptable
values.

The Fund’s independent auditors will also audit the year-end NAV.
Fiera Axium Infrastructure US LP
The Fund

Fiera Axium Infrastructure US LP (the “US Fund”, or in this table, the “Fund”).
Fund
Currency

US dollars (US$).
Fund
Structure

Open-ended limited partnership established for purposes of completing and
holding investments in U.S. assets. Limited Partners electing to invest in the Fund
may do so through capital commitments to such Fund (each a “Capital
Commitment”).
General
Partner

Fiera Axium Infrastructure US Partner LLC (a limited liability company formed
under the laws of the State of Delaware), a subsidiary of Fiera Axium
Infrastructure US Inc.
Manager

Fiera Axium Infrastructure US Inc. (a corporation incorporated under the laws of
the State of Delaware). Fiera Axium Infrastructure US Inc. is registered as an
exempt reporting adviser with the U.S. Securities and Exchange Commission.
Fund
Objective

The Fund’s objective is to generate attractive risk-adjusted returns primarily
through equity, quasi equity, convertible and subordinated debt and equity-related
investments in Infrastructure Assets (as defined herein) located in the U.S.

The Fund seeks to invest in core Infrastructure Assets.

“Infrastructure Assets” include, without limitation:
i.
transportation assets, including without limitation roads, tunnels, bridges,
Confidential Information Memorandum
12
Section 1.0 – Executive Summary
ii.
iii.
air and sea ports and mass transit systems;
energy assets, including without limitation power generation, transmission
and distribution systems, pipelines and gas collection and distribution
systems; and
social assets, including without limitation hospitals and other medical care
facilities, schools, courthouses and other institutional buildings.
Target Return

The Fund will target an internal rate of return (“IRR”) for the portfolio of 9% to
12% to Limited Partners, after the applicable management fees, incentive fees
and other Fund expenses.
Manager
Commitment

As part of any Vintage (as defined herein), the Manager or its affiliates will commit
to invest an amount such that it shall have at all times (with its affiliates)
aggregate capital commitments to the Funds equal to at least 1% of the total
aggregate capital commitments made by all Limited Partners in the Funds.
Fund Term

The Fund will have an indefinite term (subject to the terms and conditions of the
Limited Partnership Agreement).

The Fund will be authorized to accept additional Capital Commitments
indefinitely, subject to the right of the General Partner to decide to cease or
suspend the acceptance of Capital Commitments and provided that approvals
shall be required to accept further Capital Commitments upon the Fund having
reached a threshold of C$1,000,000,000 and of C$1,500,000,000.

Notwithstanding the indefinite fund term, after a period of five (5) years from the
anniversary date of the initial closing date, a 75% majority of at least two (2)
Limited Partners and/or holders of Feeder Partnership Special Voting Interests
(as defined herein) of the US Fund may vote to fix an end date to the Term of the
Fund.
Drawdown of
Commitments

The General Partner will drawdown Capital Commitments from those Limited
Partners who have an unpaid Capital Commitment (an “Undrawn Capital
Commitment”) on a pro rata basis based on the amount of the respective Capital
Commitment made by each such Limited Partner to the US Fund, giving priority
to earlier Vintages in a manner fully described in the Limited Partnership
Agreement.
Transfer of LP
Units

Subject to a Limited Partner’s redemption right, no Limited Partner will be
permitted to withdraw from the US Fund.

Transfer of LP Units between Limited Partners or affiliates of Limited Partners will
be accepted, subject to certain limitations. Transfers to third parties are subject
to General Partner approval, which cannot be unreasonably denied.

During certain periods, a Limited Partner may request that its LP Units be
redeemed by the Fund on the next redemption date determined by the General
Partner of the Fund (each, a “Redemption Date”).

Aggregate redemptions in a calendar year generally shall not exceed 20% of the
Fund NAV. If redemption requests represent more than 20% of the Fund NAV on
an annual basis or under other limited circumstances provided in the relevant
Limited Partnership Agreement, the Fund shall honour redemption requests on a
pro rata basis subject to certain restrictions under the Fund’s Limited Partnership
Agreement.

The redemption of LP Units is subject to a redemption discount in the first five (5)
years of their subscription (the “Redemption Discount”). The Redemption
Discount to NAV for LP Units redeemed in the first year will be 7.5%, decreasing
Redemption
Right and
Redemption
Discount
Confidential Information Memorandum
13
Section 1.0 – Executive Summary
by 1.5% each year thereafter (i.e. 6% in year 2, 4.5% in year 3, etc.).

The Fund expects to distribute the majority of cash flow available for distribution
and not retain significant cash balances in excess of prudent operational and
cash reserves.

Regardless of when any Limited Partner’s Capital Commitment is drawn down,
each Limited Partner will be entitled, pro rata with other Limited Partners based
on number of LP Units owned, to all distributions made by the Fund.
Offering and
Organization
Expenses and
Organizational
Cost-Sharing
Contribution

The Fund will bear all costs, disbursements, fees and expenses incurred in
connection with its formation and offering, including, without limitation, all
expenses and fees incurred in connection with the preparation and filing of
organizational documents and the offering, sale and issuance of the LP Units of
the Fund (the “Offering and Organizational Expenses”).

Each Limited Partner will pay an organizational cost-sharing contribution (the
“Organizational Cost-Sharing Contribution”) to the Fund equal to 0.3% of
Capital Commitments in order to (i) reimburse the General Partner and the
Manager for Offering and Organizational Expenses assumed by them and (ii)
cover the costs and expenses associated with the completion of a Limited
Partner’s Capital Commitment. The balance of such Organizational Cost-Sharing
Contribution will be kept by the Fund for general partnership purposes.
Commitment
Fee and
Management
Fee

The Fund will be paid annual commitment fees as follows:
o 0.75% “Commitment Fee” on all capital committed but not yet
invested, which is applicable only during the first year following the
acceptance date of a Limited Partner’s Capital Commitment.
Distributions
o
Incentive Fee
0.50% “Commitment Fee” on all capital committed but not yet
invested, which is applicable only during the second year following
the acceptance date of a Limited Partner’s Capital Commitment.

The Manager charges a Management Fee to Limited Partners ranging from
1.45% to 0.75%, varying in relation to the amount of the Capital Commitment
made and the passage of time (the “Management Fee”).

On each of the 10 and 11 anniversary of its Capital Commitment and as of the
th
later of the calendar year during which the 12 anniversary of its Capital
Commitment occurs and the calendar year during which the distributions actually
received by it shall be at least equal to the capital contributions made pursuant to
such Capital Commitment occurs, a Limited Partner shall pay to the General
Partner an annual portion of an “Incentive Fee”, based on a hypothetical
liquidation of all Portfolio Investments on each such anniversary date at their NAV
(the “Incentive Fee”). The annual portion of such Incentive Fee will be equal to
one third of the Incentive Fee calculated for each such anniversary date using
actual and deemed distributions, by notionally allocating such amounts between
the Limited Partner and the General Partner as follows:
i.
first, 100% to the Limited Partner until the cumulative amount distributed
to the Limited Partner is equal to the aggregate amount of all capital
contributions made by the Limited Partner at or prior to the time of such
distribution;
ii.
second, 100% to the Limited Partner until the cumulative amount
distributed to the Limited Partner would provide the Limited Partner with
an IRR of 8% on their capital contribution;
iii.
third, 50% retained by the Limited Partner and 50% distributed to the
Confidential Information Memorandum
th
th
14
Section 1.0 – Executive Summary
iv.
Valuation
General Partner until the cumulative amount distributed to the General
Partner is equal to 15% of the aggregate of all amounts distributed to,
and retained by the Limited Partner under paragraph (ii) above and this
paragraph (iii);
thereafter, 85% to the Limited Partner and 15% to the General Partner.

Allocations to the General Partner pursuant to paragraphs (iii) and (iv) are
together referred to as the “Incentive Fee” and one third of the amount so
calculated will be paid to the General Partner as of each Incentive Fee payment
date.

Should any Limited Partner exercise its right to have any of its LP Units
redeemed before the payment in full of the Incentive Fee, the Incentive Fee (or
the balance thereof) will be determined as at the date of redemption (taking into
account the applicable Redemption Discount) and paid out using redemption
proceeds.

In the event the Fund is wound-up before the payment in full of the Incentive Fee,
the Incentive Fee payable will be determined as at that date and paid out using
wind-up proceeds.

The General Partner and the Manager will prepare a fair market valuation of the
NAV per LP Unit on a quarterly basis which will be reviewed by a partner of the
corporate finance group of a major accounting firm appointed by the General
Partner as a third-party “Independent Valuator”.

On an annual basis (as at June 30), the General Partner and the Manager will
prepare a fair market valuation of the NAV of the Fund using a methodology that
shall have been approved in accordance with the Limited Partnership Agreement.
The Independent Valuator shall review the fair market valuation calculated and
reported by the General Partner and the Manager using the same methodology
mentioned above and shall, prior to September 30 of each year, provide an
independent valuation report addressed to the Limited Partners confirming
whether the said valuation is acceptable as being within a range of acceptable
values.

The Fund’s independent auditors will also audit the year-end NAV.
Confidential Information Memorandum
15
2. Market Overview and Opportunity
Confidential Information Memorandum
16
Section 2.0 – Market Overview and Opportunity
Section 2.0 – Market Overview and Opportunity
The information presented in this section and the Managers’ estimates have been based on publicly available
documents which have not been prepared or independently verified by the General Partners, the Managers or any of
their advisors in connection with this offering.
2.1.
Market Overview
Infrastructure Defined
Infrastructure can be defined as the basic physical installations, facilities and services that are inherently
fundamental to sustaining public well-being and supporting economic activity. These tangible assets
support the basic standard of living in modern societies and form the backbone of developed economies.
The sheer necessity of infrastructure sets it apart from most other sectors. As an example, cities could not
function without power or water, and businesses could not operate without roads or seaports.
Core infrastructure assets are often grouped into two distinct categories, namely economic infrastructure
and social infrastructure.
Economic infrastructure comprises facilities and services that users typically pay for. These include
transportation assets (roads, bridges, mass transit systems, air and seaports), and energy & utility assets
(power generation and transmission, pipelines, gas collection and distribution systems, water treatment
and distribution). These assets operate under a variety of regulatory frameworks and are subject to
differing degrees of market risk. Private investments typically take the form of government privatizations,
private-to-private sales, as well as development projects.
Social infrastructure comprises a range of essential facilities and services where governments retain
responsibility for providing core activities. These assets include hospitals, schools, judicial and
correctional facilities and other institutional buildings. Transactions involving private capital typically take
the form of partnerships between public and private sectors, through arrangements known as PublicPrivate Partnerships (or “PPP’s”). PPP’s involve the private sector developing, financing and maintaining
a physical asset, with the public sector continuing to provide core services.
Characteristics of Infrastructure Assets
Infrastructure is a unique asset class underpinned by a combination of the following key characteristics:
Stable and Predictable Cash Flows
Revenues generated by infrastructure assets are generally predictable in nature, and typically supported
by long-term contracts with creditworthy counterparties. Variability of costs tends to be relatively low and
often supported by underlying long-term operating contracts.
Essential Services
Infrastructure assets typically provide an essential product or service to large groups of end users who
rely on them to meet their basic daily needs. These assets are fundamental to the functioning of modern
societies and are a structural factor to economic development. Infrastructure assets offer limited exposure
to operating risk and technological obsolescence.
Natural Monopolistic Characteristics
High barriers to entry resulting from regulatory or legal frameworks, significant development capital costs,
efficiencies of economies of scale and natural geographic restrictions effectively restrict or limit
competition.
Confidential Information Memorandum
17
Section 2.0 – Market Overview and Opportunity
Relatively Stable Demand
The essential nature of infrastructure assets and relatively inelastic demand and price profiles make them
less volatile and less susceptible to macroeconomic cycles, and provide assurance of continuing revenue
streams.
Inflation Protection
Revenues are often index-linked, either directly or indirectly, or inflationary pressures can be passed
down to end users through some form of regulated return framework or index-linked revenue contract.
Infrastructure assets typically provide returns with varying degrees of inflation protection.
Low Correlation to Other Asset Classes
Due to the essential nature of services provided and low usage volatility, a portfolio of infrastructure
assets is less susceptible to market pricing pressures and economic downturns than most other major
asset classes. The low correlation of infrastructure with other asset classes, such as public market
securities, can reduce the overall volatility of returns and provides compelling diversification benefits.
Long-Term Investment Profile
Infrastructure assets have a long lifespan, usually in excess of 20 years, and typically operate under longterm concessions with relatively low value erosion over time.
Why Invest in Infrastructure?
The Managers believe that infrastructure assets represent attractive investment opportunities on a riskadjusted basis, as they generate stable and predictable, inflation-protected cash flows. The asset class
has become an increased area of focus among long-term investors such as pension plans, institutional
investors, foundations and endowments seeking investments that provide an appropriate match for their
long-duration liabilities. Infrastructure assets offer investors growing cash flows with a significant
component of total returns generated in the form of annual cash distributions relative to capital
appreciation. Most core infrastructure assets can also exhibit lower operating risk profiles as compared to
traditional private equity investments, thereby providing investors with the potential to earn appealing riskadjusted returns.
The following provides a summary of what the Managers believe represent key benefits to investing in
infrastructure from the perspective of a long-term investor:
Impact of Economic Cycles
Economic cycles are unpredictable and create volatility of returns in investments. Several pension plans,
institutional investors, foundations and endowments have experienced significant capital losses in their
portfolios as a result of recent global economic downturns. The essential nature of infrastructure assets
and relatively inelastic demand profiles make them less susceptible to macroeconomic cycles.
Inflation Protection
A number of pension plans have obligations that are linked in some manner to inflation. Infrastructure
assets tend to generate investment returns that are positively correlated with inflation, thereby providing
these types of investors with some protection against inflation.
Diversification Benefits
Due to inelastic demand, economic insensitivity, and inflation-protection, returns generated by
infrastructure assets tend to demonstrate a low correlation to returns generated by public equities, fixed
Confidential Information Memorandum
18
Section 2.0 – Market Overview and Opportunity
income securities and other major asset classes. The low correlation of infrastructure with other asset
classes enhances risk-adjusted returns and provides diversification benefits.
Long-Term Assets
Many pension plans have liabilities spanning more than 30 years, and most endowments are established
in perpetuity with obligations extending indefinitely. It has been challenging for these investors to allocate
capital towards long-term assets in quantities sufficient to match their liabilities and obligations, while
meeting their return expectations and risk tolerance levels. Infrastructure assets have long useful lives,
usually in excess of 20 years, and typically operate under long-term concessions with relatively low value
erosion over time.
Low Interest Rate Environments
The relatively low interest rate environment experienced in recent years has resulted in a limited number
of high-quality, long-term fixed income securities that provide rates of return high enough to meet the
funding obligations of pension plans, institutional investors, foundations and endowments. Infrastructure
assets generate attractive income-oriented returns via stable and predictable cash flows that are often
supported by long-term contracts with creditworthy counterparties.
Demographic Trends
The Managers believe that in the coming years, demographic trends will lead to increased demand for
investment in long-term assets. As a greater proportion of the North American population enters into
retirement (particularly the “baby-boom” generation), the need for income to support the payment of
pension plan benefits is expected to increase. The Managers believe that income-producing assets, such
as infrastructure, are well-suited to meet these requirements.
Partially in response to many of the factors outlined above, infrastructure has emerged in recent years as
a stand-alone asset class, with a number of North American pension plans, institutional investors,
foundations and endowments increasing their allocations to the asset class. Based on a survey of
institutional investors conducted by Probitas Partners in September 2011, 48% of all respondents
indicated that they have established a separate allocation specifically to infrastructure, representing a
2
significant increase from the 32% of respondents who reported separate allocations in the previous year.
The same survey found that 74% of investors who have been investing in the infrastructure sector for
more than one year have established separate allocations specifically to infrastructure. Furthermore,
based on a second survey of institutional investors conducted by Probitas Partners in May 2013, 52% of
respondents indicated their intention to increase infrastructure commitments in 2014, with only 6%
3
planning to decrease allocations. In summary, there continues to be increasing interest in the sector
from institutional investors given their appetite for alternative investments with long duration, incomeoriented returns and portfolio diversification benefits.
2.2.
Market Opportunity
Global Infrastructure Deficit
Due to historic under-investment, growing usage and neglect, infrastructure deterioration across many
jurisdictions has reached unprecedented levels. Booz Allen Hamilton estimates that some $41 trillion of
infrastructure spending will be required globally by 2030 in order to modernize obsolete systems and
4
meet expanding demand. It is evident that significant expenditure is needed in many parts of the world to
modernize aging asset bases and develop new infrastructure to support growth.
2
Probitas Partners, Infrastructure Market Review and Institutional Investor Trends Survey for 2012, September 2011
Probitas Partners, Infrastructure Institutional Investor Survey Summer 2013, May 2013
4
Booz Allen Hamilton, Strategy + Business, issue 46, Spring 2007
3
Confidential Information Memorandum
19
Section 2.0 – Market Overview and Opportunity
The fundamental need for infrastructure is determined by the interplay of three sets of variables:
economic and population growth; urbanization; and age of existing assets and rate of decay. In the
reconstruction years following World War II, infrastructure asset-formation rates represented 5% to 7% of
GDP in developed OECD economies. Conversely, from the mid 1990’s onward, these rates declined and
the decay of existing assets has primarily driven the need for infrastructure renewal. It is estimated that
US$16 trillion is required to modernize and expand water, electricity and transportation systems in the
5
U.S., Canada and Western Europe alone.
Private Capital’s Role in Infrastructure
Governments across the globe recognize the magnitude of the infrastructure deficit and the role that vital
infrastructure assets play in supporting social prosperity and advancing economic productivity. Incidents
such as the Paddington train crash in the United Kingdom (1999), the California electricity crisis (200001), the power blackout in Northeastern North America (2003), the Mississippi River Bridge collapse in
Minnesota (2007) and the Laval overpass collapse in Québec (2007) are just a few examples that have
led governments to promote infrastructure investment plans in their respective regions. With continued
mounting pressure on government budgets at all levels, reliance on private capital and adoption of
alternative procurement methods has become increasingly prevalent. This is particularly the case in North
America where experience with the involvement of private capital in infrastructure is a relatively new
phenomenon, as compared to other regions of the world such as the United Kingdom, Continental Europe
5
Booz Allen Hamilton, Strategy + Business, issue 46, Spring 2007
Confidential Information Memorandum
20
Section 2.0 – Market Overview and Opportunity
and Australia. Given fiscal constraints and the limited capacity of the public sector to raise taxes and/or
increase existing levels of indebtedness, the trend towards the utilization of private capital to fund
essential infrastructure is expected to continue.
Private capital has historically been engaged in the provision of infrastructure in three ways:
1. Procurement of services through privately financed assets – Most common in sectors that have
traditionally been developed by private enterprise. This includes areas such as power generation
and transmission, and natural gas collection and distribution. Examples include long-term power
purchase agreements (commonly known as PPA’s) with independent power producers, or
concession arrangements with highway developers. In the U.S., private capital has been
mobilized to finance and develop power facilities, highways and passenger rail systems. Similarly,
European governments have mandated private capital to develop canal systems and roads.
2. Privatization of mature assets – Privatization typically occurs when governments decide to
withdraw from the delivery of a service. Examples of this tend to apply to highways, airports,
seaports and electricity transmission. In these cases, governments often continue to regulate the
service that has been privatized. Estimates for privatized assets in OECD countries exceed
6
U.S.$1 trillion. Transfer of public assets to private investors originated in the United Kingdom
with the privatization of its crown corporations during the 1980’s, leading to further privatization in
its water and energy utilities sector. In Australia, since the early 2000s, half of capital investment
7
in infrastructure has been undertaken by private companies. In Canada, the sale of the 407 ETR
Highway by the Ontario government in 1999 serves as one of the largest and highest profile
infrastructure privatizations completed in North America to date.
3. Public-private partnerships (PPP’s) – PPP’s involve assets that are developed, financed and
operated through a partnership between a government authority, and one or more private sector
partners. PPP’s are utilized in the construction and operation of new assets, typically in the areas
of social and transportation infrastructure. Examples include healthcare and education facilities,
institutional buildings, bridges, etc. The United Kingdom has been widely recognized as a pioneer
in this respect, having procured 800 projects worth £64 billion since the mid-1990s under its
8
Private Finance Initiative (PFI). Australia was also one of the first to use PPP’s to deliver
infrastructure, with the states of Victoria and New South Wales viewed as pathfinders in
transportation PPPs. Similarly, according to the European Investment Bank, between 1990 and
2009 more than 1,300 PPP contracts were signed in the EU, representing a capital value of more
9
than €250 billion. The adoption of PPP arrangements in Canada and the U.S. has been largely
modeled after United Kingdom, Australian and European experiences.
2.3.
Canadian Opportunity
Canada’s Infrastructure Deficit
Historically, market studies have pointed to a growing Canadian infrastructure deficit resulting from years
of neglect and deferred maintenance, as well as under-investment in new assets. For instance, a study
conducted in 2007 estimated Canada’s accumulated infrastructure gap at $123 billion, rising more than
10
two-fold from 2003. Similarly, a more recent study conducted in 2009 / 2010 found that $172 billion is
6
Inderst, G. (2009), “Pension Fund Investment in Infrastructure”, OECD Working Papers on Insurance and Private Pensions, No.
32, OECD publishing, © OECD. doi:10.1787/227416754242, January 2009
7
OECD - Pension Funds Investment in Infrastructure A Survey, September 2011
8
OECD - Pension Funds Investment in Infrastructure A Survey, September 2011
9
OECD - Pension Funds Investment in Infrastructure A Survey, September 2011
10
Report to the Federation of Canadian Municipalities: “Danger Ahead: The Coming Collapse of Canada’s Municipal Infrastructure”,
November 2007
Confidential Information Memorandum
21
Section 2.0 – Market Overview and Opportunity
11
required just to replace roads and water systems. The survey found that, on average, approximately
12
30% of municipal infrastructure ranks between “fair” and “very poor”.
Canada’s Infrastructure Deficit
$140
$123
$120
C$ BN
$100
25.1%
$80
$60
$44
$40
$20
32.6%
$57
$12
17.6%
6.2%
$20
18.5%
$0
1985
1992
1996
2003
2007
Community, recreational, cultural and social infrastructure
$40.2 billion
Solid waste management
$7.7 billion
Transit
$22.8 billion
Transportation
$21.7 billion
Water and wastewater systems
$31.0 billion
Source: Report to the Federation of Canadian Municipalities: “Danger Ahead: The Coming Collapse of Canada’s
Municipal Infrastructure”, November 2007
Historic Under-investment
Evidence of under-investment and neglect is further reflected by the age and decay of Canada’s public
infrastructure. Since 1987, the average age of Canada’s infrastructure assets, in proportion to their useful
lives, increased in three out of five categories: wastewater treatment, bridges and overpasses and sewer
13
systems. It is estimated that 59% of Canada’s infrastructure assets are more than 40 years old and are
14
therefore near or beyond their expected useful lives.
11
Canadian Infrastructure Report Card – Volume 1: 2012 Municipal Roads and Water Systems, September 2012
Canadian Infrastructure Report Card – Volume 1: 2012 Municipal Roads and Water Systems, September 2012
TD Economics Special Report, “Much Ado About Infrastructure”, January 2009
14
Report to the Federation of Canadian Municipalities: “Danger Ahead: The Coming Collapse of Canada’s Municipal Infrastructure”,
November 2007
12
13
Confidential Information Memorandum
22
Section 2.0 – Market Overview and Opportunity
Age of Public Infrastructure Assets
Wastewater treatment
28%
Bridges and overpasses
41%
31%
Sewer systems
Highways and roads
0 to 40 years
40 to 80 years
Watersupply systems
80 to 100 years
0%
10%
20%
30%
40%
Average as % of Useful Life
50%
60%
2007
70%
80%
1987
90%
100%
1967
Source: Statistics Canada, Report to The Federation of Canadian Municipalities: “Danger Ahead: The Coming
Collapse of Canada’s Municipal Infrastructure”, November 2007
The decline in government infrastructure expenditure during the years leading up to 2000 negatively
impacted Canada’s infrastructure stock. Between 1955 and 1977, Canada experienced strong growth in
its supply of infrastructure assets, as new investment in infrastructure grew by 4.8% annually. In contrast,
during the 1980s and the early 1990s, the deterioration of the fiscal position of government coupled with
rising debt levels limited the capacity to undertake large new capital programs, underlying an historical
15
trend of declining investment in infrastructure.
Investment in public infrastructure by all orders of
government in Canada steadily declined as a percentage of GDP through the years leading up to 2000.
Investment rates in the range of 2% of GDP experienced during the mid-1970’s were halved going into
16
the 21st century.
Shift in Jurisdictional Responsibility
The shift of jurisdictional responsibility for the funding of infrastructure has also been a significant
contributing factor to the growth of the Canadian infrastructure deficit. The jurisdictional responsibility for
funding a significant proportion of public infrastructure has increasingly been shifted from federal and
provincial levels to local or municipal levels. In 1955, the federal government owned 44% of the Canadian
public capital stock, the provincial government owned 34% and local governments 22%. By 2011, the
federal government owned only 13%, the provincial government 35% and municipalities 52%. The fact
that infrastructure responsibilities progressively shifted from the level of government with the largest
17
revenue base to that with the smallest revenue base, made the deficit increasingly difficult to address.
15
OECD - Pension Funds Investment in Infrastructure A Survey, September 2011
Canada’s Infrastructure Gap, Canadian Centre for Policy Alternatives, January 2013
17
Canada’s Infrastructure Gap, Canadian Centre for Policy Alternatives, January 2013
16
Confidential Information Memorandum
23
Section 2.0 – Market Overview and Opportunity
Infrastructure Capital by Jurisdiction (1955 - 2010)
60%
Percent of Total
50%
40%
30%
20%
10%
Provincial
Local
Federal
0%
1955
1960
1965
1970
1975
1980
1985
1990
1995
2000
2005
2010
Source: Canada’s Infrastructure Gap, Canadian Centre for Policy Alternatives, January 2013
Competing demands for government funding, as well as a shift in funding responsibilities from provincial
and federal governments to over-burdened municipalities, have fuelled the growth of the national
infrastructure deficit that exists today.
Bridging the Infrastructure Gap - Renewed Public Sector Commitment
Factors such as economic growth, demographic trends, urbanization and increased levels of immigration
have resulted in heightened demand for services provided by essential infrastructure assets. Although
governments face competing demands for capital and do not necessarily favour spending on
infrastructure that would result in forsaking other important priorities, most have come to acknowledge the
current and growing need to finance, modernize, expand, develop and maintain infrastructure. The
Canadian government has accelerated its efforts in recent years, initiating several infrastructure-focused
fiscal stimulus plans. Initiatives such as the Building Canada Plan and Canada’s Economic Action Plan
are examples of this growing public sector commitment towards investing in federal, provincial and
municipal infrastructure across the country. As depicted in the graph below, total investment in
infrastructure by all orders of government (as a percentage of GDP) has rebounded in recent years to
levels not experienced since the 1960’s.
Total Investment by All Orders of Government (1961 - 2010)
4.0%
Percent of GDP
3.5%
3.0%
2.5%
2.0%
1.5%
1.0%
0.5%
0.0%
1961
1965
1969
1973
1977
1981
1985
1989
1993
1997
2001
2005
2009
Source: Canada’s Infrastructure Gap, Canadian Centre for Policy Alternatives, January 2013
Confidential Information Memorandum
24
Section 2.0 – Market Overview and Opportunity
Through the 2007 $33 billion “Building Canada” plan and other infrastructure initiatives, the federal
government has supported over 12,000 provincial, territorial and municipal infrastructure projects across
Canada, including subways, commuter rail, highways and bridges. As part of the 2014 budget, the federal
government introduced a new “Building Canada” plan intended to allocate $53 billion to infrastructure
projects between 2014 and 2021. The plan is aimed at investing in infrastructure that contributes to
increased trade and productivity, movement of goods and services and economic growth. The plan
places priority on core infrastructure including public transit, roads, highways, bridges, ports, airports,
post-secondary institutions and community infrastructure. The plan also includes the renewal of a $1.25
billion federal Public Private Partnerships Fund to support projects providing alternatives to traditional
government infrastructure procurement. Combined with other federal funding initiatives, including
significant investments in First Nations, infrastructure spending is expected to total $70 billion over the
next 10 years.
The aforementioned initiatives, among others, have begun to address the deficit, with recent evidence
suggesting that renewal programs and increased government spending are positively impacting the
country’s infrastructure stock. As depicted in the graph below, the average age of core public
infrastructure assets declined from a peak of 17.2 years in the early 2000’s, to an estimated 15.9 years in
18
2010.
Average Age of Infrastructure (1961 - 2010)
Age (years)
18
17
16
15
14
1961
1965
1969
1973
1977
1981
1985
1989
1993
1997
2001
2005
2009
Source: The New Building Canada Plan, March 2013
Renewed commitment on the part of government is expected to create increased opportunity for private
sector involvement in the development and financing of the nation’s infrastructure.
Overview of Provincial Initiatives
In 2005 the Ontario government announced a five-year plan to invest $30 billion in infrastructure under its
ReNew Ontario program. Its March 2009 budget announced plans to double its spending on infrastructure
projects by investing an additional $32.5 billion into building roads, schools and hospitals over 2010 and
19
2011.
Total provincial expenditure for infrastructure was $12.9 billion in 2011-2012, and in its 2013
budget, Ontario reaffirmed its infrastructure funding at $35 billion for the next three years. Included in the
2013 budget is nearly $13.5 billion of infrastructure spending on public transit, highways, post-secondary
institutions and hospitals.
In 2007, the Québec provincial government announced a five-year, $37 billion infrastructure plan aimed at
20
renewing the province’s road, water, energy and social infrastructure. In 2009, the plan was increased
18
The New Building Canada Plan, March 2013
Ontario Budget 2009, Chapter I: Confronting the Challenge: Building Ontario’s Economic Future, March 2009
20
Government of Quebec, “Foundations for Success, Quebec Infrastructure Plan”, May 2007
19
Confidential Information Memorandum
25
Section 2.0 – Market Overview and Opportunity
to $42 billion over the period from 2008 to 2013, with roadways, healthcare and education facilities
21
accounting for three-quarters of the total planned investment. In its 2011 budget, the provincial
government also announced new infrastructure investments and measures totaling $1.2 billion over the
next five years as part of the Northern Plan to develop transportation and telecommunications links. In
2013, the Québec provincial government revised its long-term plan, targeting $44.2 billion of infrastructure
investment during the five- year period from 2011 to 2016.
British Columbia’s 2013 budget includes plans for taxpayer-supported infrastructure spending on
hospitals, schools, roads and bridges totaling $10.7 billion over the next three fiscal years. In addition, the
budget also allows for $8.5 billion for self-supported infrastructure spending on electrical generation,
transmission and distribution projects over the next three fiscal years.
In Alberta, infrastructure spending is to average $5.5 billion annually for the three years ending in 2015.
Since 2008, Saskatchewan has invested nearly $5.8 billion in infrastructure projects. In October 2012, the
government of Saskatchewan established SaskBuilds, a new government agency responsible for
infrastructure financing as part of the Saskatchewan Plan for Growth. The province has also promised to
invest at least $2.5 billion in infrastructure over the next three years, including bridges, highways and
water infrastructure.
The public sector investment plans at both federal and provincial levels outlined above represent a step
toward bridging the infrastructure gap in Canada. Despite wrestling with budget deficits and competing
priorities, the Canadian government has made a conscious effort to reduce the infrastructure gap that
currently exists. With a number of infrastructure stimulus initiatives currently planned or underway, a large
number of opportunities exist for private capital involvement in the Canadian infrastructure sector.
Framework for Private Capital Involvement
In North America, infrastructure assets are owned by public and private sector entities with ownership
structures varying by sub-sector. For example, roads and airports tend to be almost entirely governmentowned, while many assets in the electricity and natural gas space are controlled by private investors.
Following frameworks employed in Europe and Australia, governments in Canada are increasingly relying
on private sector involvement in infrastructure. Private participation has mainly taken the form of publicprivate partnerships, as well as investor participation in transactions involving privately-owned or
unregulated assets and/or businesses. This is particularly applicable to the power generation and
transmission sectors, including renewable energy (e.g. wind power, hydroelectric power, solar power) and
oil and gas storage and distribution.
The trend towards utilization of private capital in the Canadian infrastructure space has also been
supported by changes in regulatory environments. De-regulation in certain sub-sectors, as well as public
policy reform have given way to an increase in private market transactions. For example, tax policy
changes implemented by the Canadian government regarding the tax treatment of income trusts has
given rise to a number of take-private transactions in the power and utility sectors.
With respect to transportation and social infrastructure, Canadian governments have implemented
legislation to enable concession-based arrangements such as PPPs. This has been made possible
mainly through strong political commitment to facilitate private participation, as well as the implementation
of evaluation frameworks to determine the appropriateness of private financing. A number of PPP
21
Government of Quebec, “Economic Statement, Additional Immediate Actions to Support the Economy and Employment”, January
2009
Confidential Information Memorandum
26
Section 2.0 – Market Overview and Opportunity
projects have been successfully completed over the years including Confederation Bridge, Canada Line,
Montreal University Research Centre and the Durham Consolidated Courthouse, to name only a few.
Public-Private Partnerships
Reliance on private capital and expertise to develop, finance and operate public infrastructure has
become increasingly prevalent in Canada. The traditional role of government as a direct provider of
infrastructure services has evolved to one that facilitates private development, financing and operation of
assets. The framework for private sector involvement in public infrastructure typically involves private
investment in a long-term concession or other contractual right to operate an asset. Under these
arrangements, assets remain under government ownership and are usually administered under the
oversight of a public body, thereby ensuring that public interests are maintained. These concessionbased structures are known as Public-Private Partnerships, or PPPs.
PPPs span a spectrum of models that progressively engage the capital and/or expertise of the private
sector. The options available for delivery of public services range from direct provision by a government
body to outright privatization, whereby the government transfers all responsibilities, risks and rewards to
the private sector. Within this spectrum, PPPs can be categorized based on the extent of public and
private sector involvement and the degree of risk allocation. A commonly utilized PPP model in Canada
is the Design-Build-Finance-Maintain (DBFM) model, whereby the private sector designs, builds and
finances a new facility under a long-term concession, and maintains the facility during the term of the
concession in accordance with agreed upon performance standards. The private partner receives
payments from a government entity (typically known as “availability payments”) and then transfers the
new facility in prescribed good condition to the public sector at the end of the concession term. Core
services remain the responsibility of the public sector. For example, under a hospital PPP, surgical
procedures would continue to be provided by public medical staff, while the operation and maintenance of
the facility itself would be provided by the private partner.
Canada has developed considerable expertise in the PPP space through coordinated provincial
programs. British Columbia, Ontario and Québec have established PPP procurement bodies dedicated
to the administration and execution of PPPs.
In June 2002, British Columbia created Partnerships B.C. with a mandate to develop PPPs. Since then, it
has delivered over 20 DBFM projects. In May 2005, Ontario established the Ontario Infrastructure
Projects Corporation (now known as Infrastructure Ontario) to administer projects approved under the
province’s Alternative Financing and Procurement (AFP) approach which covers PPPs. Since its
inception, Infrastructure Ontario has closed more than 35 AFP projects, representing billions of dollars in
22
investment. A number of additional projects are currently under construction or in procurement, and a
strong pipeline (including hospitals, and transportation and light trail projects) are in various stages of
tendering or pre-tendering. In 2005, Québec established the Agence des partenariats public-privé du
Québec (now known as Infrastructure Québec) with a mandate to advise the Province on PPP matters. A
number of PPP projects have been successfully procured, including two legs of major highways, two
major university hospitals located in Montréal, a symphony hall and a clinical research facility for which
Fiera Axium’s inaugural fund (FAICLP) is majority equity sponsor. Alberta has also established a
dedicated PPP office within its treasury board, and has procured major highway and school projects
under PPP frameworks. In addition, other provinces, such as Nova Scotia and Saskatchewan, have
begun to develop provincial PPP programs.
In addition to leveraging efficiencies and innovations of private enterprise, PPPs can provide much
needed capital to finance government programs and projects, thereby freeing up public funds for core
economic and social programs. PPPs can provide a number of other benefits including greater value for
22
Infrastructure Ontario website, October 2013
Confidential Information Memorandum
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Section 2.0 – Market Overview and Opportunity
money, more efficient risk allocation, enhanced accountability, accelerated project delivery and improved
long-term maintenance of public assets.
Opportunities Landscape
The magnitude of current and forecasted needs in Canada, as well as recent policy changes has created
a number of opportunities for private involvement in infrastructure investment. Many of these
opportunities have been identified in the energy, transportation and social infrastructure sub-sectors.
Opportunities Landscape – Energy Infrastructure
Electricity Generation
In Canada, electricity falls within provincial jurisdiction, with the bulk of generation, transmission and
distribution provided by large utilities. Traditionally, power supply has been largely provided by Crown
corporations such as Ontario Hydro and Hydro-Québec, however procurement from private independent
power producers in electricity generation and transmission has become commonplace. During the mid1980’s, factors including rapid growth in energy demand, increasing electricity rates and advances in new
generation technologies, prompted governments to implement policies aimed at encouraging independent
power generation. Québec began seeking generating capacity from independent power producers in the
early 1990’s and committed to a number of long-term agreements to buy electricity under the terms of
power purchase agreements. In the late 1990s, most provinces unbundled (vertically separated) their
power utilities. In 2002, Ontario’s wholesale and retail electricity markets were opened to competition,
with the Ontario Power Authority issuing calls for power in 2005. In 2001, Québec introduced wholesale
competition between Hydro-Québec’s Production Division and independent power producers to meet
annual energy demand in excess of 165 Twh historically supplied by Hydro-Québec Production. Alberta
deregulated both its retail and wholesale markets in 2001, and operates a unique transmission system
and an independent market surveillance administrator. British Columbia has implemented open access in
wholesale and industrial markets, as well as an independent transmission system.
The Canadian power landscape now includes a mix of Crown corporations, independent power producers
and privately held utilities. British Columbia, Alberta, Ontario, Québec, Nova Scotia and Newfoundland
have all established programs to seek investment in new generation from independent power producers
under long-term power purchase agreements with government agencies. The independent power sector
now includes generation from a number of sources including coal, natural gas, hydro, wind, solar and
biomass. While regulated utilities continue to dominate the market, the power generation industry has
undergone considerable deregulation over the years, with independent power producers now playing an
integral role in the supply of future power needs.
A study by the International Energy Agency found that approximately $13.7 trillion in energy-supply
23
infrastructure expenditure will be needed in OECD countries from 2011 to 2035. The significant
expenditure is attributable to the need to retire and replace aging energy infrastructure, the relatively
more capital intensive energy mix and the higher average cost of capacity additions. From a Canadian
perspective, several provinces – particularly Ontario and Alberta - require substantial amounts of new
generation capacity in order to respond to increasing demand, retirement of aging plants and a
commitment to replace fossil fuel-based generation with cleaner sources of energy.
According to the National Energy Board, total generation capacity in Canada is projected to increase by
27% from 2010 to 2035 (natural gas-fired and renewable-based capacity is expected to represent the
23
International Energy Agency, “World Energy Outlook 2011”, Global Energy Trends, table 2.4
Confidential Information Memorandum
28
Section 2.0 – Market Overview and Opportunity
24
largest increases). The capacity increase is believed to be driven by two key factors. Firstly, as existing
power facilities age, they will need to be replaced for reliability, economic and/or environmental reasons.
Secondly, sufficient capacity will need to be constructed to meet growing demand while maintaining
25
sufficient reserve margins.
Sufficient reserve margins are required to provide cushion, as operating
availability and transmission grid congestion can result in electricity shortages.
Total installed generation capacity is projected to increase from 133 GW in 2010, to 170 GW by 2035.
Total new gross capacity additions amount to 55 GW of which 19 GW are for replacement and 36 GW to
service incremental demand and export markets. The capacity increases occur in all provinces and
territories, with most increases in the larger electricity markets of Quebec, Ontario, British Columbia and
26
Alberta. Additional transmission capacity will also be required in order to support increased generation.
Growth in demand for power has been impacted by the recent economic downturns, and energy demand
forecasts completed prior to the economic downturns have not materialized in the short term. However,
demand growth has historically rebounded with economic recoveries. The Canadian Manager believes
that historic underinvestment in generation and transmission has been such that needs for future
investment are still well-recognized by authorities. In addition, public policies remain committed to
stimulating investment in the sector, and replacing fossil fuel-based generation with cleaner sources of
energy. Investment in power generation is expected to include projects of all types, including
conventional sources such as large hydro, natural gas, coal and oil (to a lesser extent), as well as wind,
small hydro and solar.
Power distributors and authorities in several Canadian provinces have issued calls for power and are
increasingly resorting to Power Purchase Agreements (PPAs) with independent power producers in order
to procure energy generation projects. PPAs have successfully been applied to gas-fired, hydro, wind,
solar and biomass power.
Renewable Energy
Although Canada has one of the most diversified power generation bases in the world, it is one of the
largest per-capita emitters of greenhouse gases. There is an increasing drive towards making Canada’s
energy sources cleaner. The Federal government has committed to meeting 90% of Canada’s electricity
needs with clean sources by 2020.
Provincial governments have also revaluated their current energy mix with a focus towards renewable
energy sources. In 2009, Ontario’s Green Energy and Green Economy Act introduced the Feed-in-Tariff
Program (the “FIT Program”) offering a 20-year term, fixed price contract for renewable electricity
production. The FIT Program will help Ontario phase out coal-fired electricity (currently representing
~3,500 MW of generation capacity) by the end of 2014 – representing the single largest climate change
27
initiative in North America. In November 2010, Ontario’s Provincial Government issued its Long-Term
Energy Plan focused on investment in renewable generation. The Plan commits to a target 10,700 MW
of wind, solar, and bioenergy generating capacity by 2018, accommodated through transmission
expansion and maximizing the use of the existing grid. 4,700 MW of variable generation projects
(predominantly wind) are expected to achieve commercial operation by the end of 2013. Since 2005, the
28
OPA has entered into contracts for over 22,200 MW of capacity.
24
National Energy Board - Canada’s Energy Future: Energy Supply and Demand Projections to 2035 - Energy Market Assessment,
November 2011.
25
National Energy Board - Canada’s Energy Future: Energy Supply and Demand Projections to 2035 - Energy Market Assessment,
November 2011
26
National Energy Board - Canada’s Energy Future: Energy Supply and Demand Projections to 2035 - Energy Market Assessment,
November 2011
27
Canadian Centre for Energy, May 2011
28
Ontario Power Authority website, October 2013
Confidential Information Memorandum
29
Section 2.0 – Market Overview and Opportunity
In 2001, BC Hydro launched its first sizable green power generation procurement program which was
followed by three subsequent green power generation procurements in 2002/03, 2006 and 2008. Its
2008 “Clean Power Call” Request for Proposals (RFP) sought out 5,000 GWh of seasonal and hourly firm
energy from private producers. In May 2012, the BC Provincial Government issued a draft Integrated
Resource Plan, recommending a number of actions including the development of a 2,000 GWh / year
clean energy procurement process.
Similarly, in recent years, Hydro-Québec has contracted with private generators for nearly 3,000 MW of
wind power. By 2015, Hydro-Québec intends to develop its considerable wind energy potential by calling
29
for bids for the production of 4,000 MW of wind energy.
In April 2010, the Nova Scotia government released a renewable electricity plan that commits to
30
generating 25% of the province’s electricity from renewable resources by 2015.
In light of the above, the Canadian Manager believes that a number of opportunities for private sector
involvement exist, particularly in the areas of wind, hydroelectric and solar power generation.
(i) Wind Power
The wind power sector in Canada provides significant opportunity for private sector involvement. Canada
has one of most abundant wind resources in the world with annual average mean wind speeds equivalent
to, or higher than those found in other leading wind energy countries. Canada also ranks as the 9th
largest producer of wind energy in the world with a current installed capacity of 7,051 MW producing
enough power to meet about 3% of the country’s total electricity demand. In 2012, Canada added
936 MW of new wind energy capacity to provincial grids, representing an investment of $2 billion. New
projects were commissioned in British Columbia, Alberta, Manitoba, Ontario, Quebec, Nova Scotia and
the Northwest Territories. Canada is expected to see an average of 1,500 MW of new projects
commissioned annually over the next four years.
Total wind generation capacity in Canada is projected to grow from 3,319 MW in 2009 to 12,000 MW by
2016, as provincial standards mandating increased renewable electricity supply continue. These
standards will be met by way of requests for proposals and competitive bidding by private companies.
Governments continue to support the development of wind power through revenue premium incentives,
accelerated tax deductions, tax equity financing initiatives, as well as a $1 billion Climate Fund to support
development of renewable energy technologies.
31
Ontario is expected to install more than 5,600 MW of new wind capacity before 2018. British Columbia
has 390 MW of wind energy capacity in operations with another 534 MW expected to be completed by
the end of 2014, and is planning improvements to its transmission infrastructure that may allow more wind
32
energy to be installed over the next few years. SaskPower, Saskatchewan’s Crown electric utility is
targeting approximately 8.5% of its future power supply from wind energy. Under the Ontario
government’s Long Term Energy Plan, 7,500 MW of the 10,700 MW of targeted renewable generation is
expected to come from wind energy. Quebec has 1,866 MW of installed wind capacity and over 1,900
33
MW contracted to be built by 2015. There remains about 500 MW to be contracted before reaching the
29
Canadian Centre for Energy, May 2011
Canadian Centre for Energy, May 2011
CanWEA website, October 2013
32
CanWEA website, October 2013
33
CanWEA website, October 2013
30
31
Confidential Information Memorandum
30
Section 2.0 – Market Overview and Opportunity
34
4,000 MW target by 2015.
In New Brunswick, the provincial government has asked NB Power to
proceed with the addition of 300 MW of incremental wind capacity. Nova Scotia has 324 MW of installed
wind energy capacity and its renewable electricity plan calls for a minimum of 600 GWh of electricity to
come from renewable projects by 2015.
(ii) Solar Power
Canada’s solar photovoltaic (PV) sector has experienced significant growth in recent years, due primarily
to Ontario’s Renewable Energy Standard Offer Program (RESOP) and subsequent Feed-in Tariff (FIT)
program. The long-term, fixed-rate PPA’s offered under RESOP and FIT have shifted the focus of the
sector away from residential off-grid and niche applications, towards grid-connected systems. Canada’s
solar sector, specifically grid-connected ground mounted PV projects, has been an area of significant
growth and investment over the past two years. In 2010, with 167 MW of installed capacity, Ontario
35
ranked second for solar PV installations amongst U.S. states and Canadian provinces.
Ontario is
currently a leading jurisdiction for solar PV in North America, having 814 MW of installed solar PV
36
capacity in 2013.
Ontario’s Long term Energy Plan calls for 1.5% of total generation in the province to come from solar PV
by 2030. Meeting both of these targets will require the continued development of grid-connected projects
over the near term. The Canadian Manager has evaluated a number of opportunities in the Ontario solar
market, for both late-stage greenfield projects, as well as opportunities to acquire operational solar PV
facilities. The Canadian Manager expects opportunities in the space to continue to arise as developers
seek third-party equity capital to finance shovel-ready projects for which they have been awarded RESOP
and/or FIT contracts, and as a means of monetizing development profits and recycling capital for reinvestment into their pipeline of development opportunities.
(iii) Hydroelectric Power
Hydroelectric power continues to represent a major source of electricity in Canada, comprising
37
approximately 63% of total generation capacity. Canada is the third largest producer of hydroelectricity
in the world. A number of provinces are rich in water resources and over the coming years there is
expected to be significant development of new hydro projects in Québec, Manitoba, British Columbia and
Newfoundland and Labrador and smaller hydroelectric projects in Alberta and Ontario. The industry has
identified 163,000 MW of technical potential across all of Canada – more than double the existing
installed capacity of 70,000 MW. Over the next ten years, these projects are expected to involve over $50
38
billion in capital investment. Many of them will be located far from customers and will also require major
investment in transmission infrastructure.
An inventory of waterpower potential in Ontario alone identified 2,000 sites with basic hydraulic conditions
(regularly flowing water and change in elevation) to produce waterpower energy. Only 200 sites have
39
been developed in the last century. The potential energy that could be produced by small hydropower
technologies is estimated to be 15,000 MW, with current installed small hydro capacity at only
40
approximately 3,400 MW.
Opportunities in power generation include both acquisition of existing assets and greenfield development
projects. Opportunities with respect to the acquisition of existing assets are expected to arise as
companies divest assets in an effort to free up capital, provide capital for new development projects, or
34
CanWEA website, October 2013
ClearSky Advisors Inc. - Economic Impacts of the Solar PV Sector in Ontario 2008-2018, July 2011
36
Ontario Power Authority website, October 2013
37
Canadian Centre for Energy, May 2011
38
Canadian Hydropower Association, www.canhydropower.org
39
Ontario waterpower association: www.owa.ca
40
CanmetENERGY
35
Confidential Information Memorandum
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Section 2.0 – Market Overview and Opportunity
refocus on their core activities. Greenfield opportunities are expected to continue to arise as governments
encourage the development of renewable energy sources.
Electricity Transmission and Distribution
Much of Canada’s transmission network comprises infrastructure that was built in the 1950s and 1970s
and is now in need of replacement. Investment in new generation facilities over the years has not been
adequately matched by investment in new transmission facilities, resulting in transmission systems that
have become overly congested.
The Canadian Manager believes that significant investment is required for the modernization and
development of existing and new transmission systems. Private investment in long-distance transmission
line projects is required in order to connect remote baseload sources to the grid. In addition, new
transmission lines are increasingly being required in order to connect to a growing number of renewable
energy sources. Many of these energy sources, for instance wind power, are often located far from load
centers.
Electricity distribution is predominantly controlled by large publicly-traded utilities. The need to expand
distribution infrastructure and install new distribution equipment to meet population and demand growth
will require continued investment.
The ability to site and build transmission is expected to be an important consideration in the electric
industry over the next ten years. A 15% increase in the kilometers of transmission lines is projected by
2018 in North America. With the increase in wind and solar resource projections, transmission will be
needed to “unlock” renewable resources in remote areas, increase diversity of supply, and provide
41
access to ancillary services required to manage their variability. According to the Alberta Electric
System Operator’s (AESO) long-term plan, $13.5 billion of major transmission infrastructure is estimated
42
to be required to be built in Alberta by 2020. AESO has initiated an RFQ process in relation to the
development and construction of a 500km AC transmission line between Edmonton and Fort McMurray
via competitive tender process under an availability-based PPP framework.
Given the need to upgrade and improve transmission infrastructure, the Canadian Manager expects
opportunities to arise in the coming years whereby private sector capital is mobilized to develop and
construct transmission stock.
Opportunities Landscape – Transportation Infrastructure
Roads, bridges and transit systems
Much of the existing transportation systems in Canada, particularly roads and highways constructed
during the 1950s, have now exceeded their useful lives and need to be replaced. A 2007 survey indicated
that $21.7 billion is required to modernize Canada’s existing transportation assets, with an incremental
$28.5 billion needed for investment in new transportation networks. Transit system upgrades including
light rail, subways, etc. require investment in excess of $22 billion, with an incremental $7.7 billion needed
43
for investment in new transit projects. Furthermore, a report prepared for the Council of the Federation
44
estimates investment needs for urban roads and bridges alone to be in the range of $66 billion.
41
North American Electric Reliability Corporation, 2009 Reliability Assessment of North America, October 2009
Source: AESO
Report to the Federation of Canadian Municipalities: “Danger Ahead: The Coming Collapse of Canada’s Municipal Infrastructure”,
November 2007
44
Council of the Federation, “Looking to the Future: A Plan for Investing in Canada’s Transportation System”, December 2005
42
43
Confidential Information Memorandum
32
Section 2.0 – Market Overview and Opportunity
The economic costs associated with the inadequacy of Canada’s transportation systems are significant. It
45
is estimated that more than $1 billion in trade crosses the Canada-U.S. border alone each day.
Increased trade and traffic puts significant pressure on major corridors and border crossings, creating
bottlenecks and impeding flow of goods. The total annual cost of congestion and shipment delays are
estimated to be approximately $30 billion a year, with the majority of these costs concentrated in
46
Ontario. The Canadian Manager believes that there is great economic importance in upgrading and
improving the capacity of Canada’s transportation assets.
In response to the growing magnitude of transportation needs, many Canadian provinces continue to
seek private sector involvement in the development and/or upgrade of highways and transit projects. For
example, private sector capital was employed under a concession-based agreement to develop the $2
billion Canada Line rapid rail project connecting downtown Vancouver to the Vancouver International
Airport. Similar arrangements have been undertaken for projects including the upgrade of the Sea-to-Sky
Highway in British Columbia, development of the A-25 and A-30 highways in Québec, as well as various
phases of the Calgary and Edmonton Ring Roads in Alberta that are complete or currently in tender.
The Canadian Manager estimates that in excess of 20 transportation DBFM projects have achieved
financial close in Canada since 2005, worth in excess of $15 billion, with a number of additional projects
currently in procurement or intended to come to market over the next two years.
Opportunities in the transportation sector exist mainly via greenfield PPP concessions or operating
projects whereby private investors operate existing assets under concession agreements with
government entities. Government initiated processes are expected to continue to arise, as Provincial
governments (primarily in Alberta, Ontario and Quebec) have established plans to procure a growing
number of highways, bridges and light rail projects. The Canadian Manager also anticipates a growing
number of opportunities to arise in the secondary transportation PPP market as developers sell individual
or portfolio equity interests in projects that have already been developed.
Seaports
Canada is one of the most trade-dependent nations among the G8, exporting goods and services
47
accounting for 30% of its GDP in 2012.
Growing trade with emerging economies, particularly Asia,
imposes greater demands on Canada’s seaports. In addition, there is growing demand for exports of bulk
commodities and increased use of containers for imports. In light of these requirements, governments
realize the importance of having adequate infrastructure in place to ensure Canada’s global
competitiveness. To ensure efficient port-to-rail-to-destination service, Canada’s Pacific Gateway
initiative has identified 47 infrastructure projects worth $3.5 billion needed to optimize gateways on
48
Canada’s west coast (Vancouver and Prince Rupert). Continued growth in Asian demand for Canadian
exports (forest products, grains, etc.) has placed even greater importance on the development and
expansion of the nation’s port assets. In response, the Port of Vancouver plans to double its capacity by
2020. Similarly, the need for cost-efficient deep water container terminals located near Canadian and
U.S. consumption zones that are capable of servicing India and Southeast Asia is expected to provide
port development opportunities on Canada’s east coast.
Opportunities in the port sector are likely to take the form of acquisitions of independent terminals or port
operators that have freehold or leasehold rights to terminals. Opportunities may also arise in the
development of new terminals via partnership with public sector entities.
45
CBC website, October 2013
Report on Business, October 2013
47
Statistics Canada website, October 2013
48
The Journal of Commerce – The Trans-Pacific Rebounds – Again (March 2011)
46
Confidential Information Memorandum
33
Section 2.0 – Market Overview and Opportunity
Opportunities Landscape – Social Infrastructure
Social infrastructure assets comprise hospitals, schools, courthouses and other institutional facilities
where a government body retains responsibility for providing core activities. Factors such as demographic
trends and population growth across major urban centers continue to drive the need for the modernization
and development of social infrastructure. The need to rehabilitate community, recreational, cultural and
49
social infrastructure in Canada has been estimated at $40.2 billion as estimated in 2007. Rising social
and healthcare costs have led many provincial governments to use PPPs, principally through DesignBuild-Finance-Maintain (DBFM) arrangements, as a means of addressing the growing demand for these
services.
In comparison to traditional public sector procurement processes, many governments in Canada have
achieved significant cost and procurement efficiencies through the private sector delivery and operation of
social infrastructure assets. The success of private sector involvement in the sector has led many
provincial governments to implement standardized procurement processes. Revenues derived from social
PPP projects of this nature come in the form of government-guaranteed, inflation-linked payments and
are made on an availability-basis regardless of actual patronage. As such, investments in social PPP
projects typically have little to no exposure to volume risk.
Canada has developed considerable expertise in the social PPP space through its coordinated provincial
programs. Ontario, British Columbia, Alberta and Québec have successfully procured a number of
projects via PPP framework. Infrastructure Ontario’s project pipeline includes a number of upcoming
social PPP’s comprising healthcare facilities and other institutional buildings. Ontario boasts the largest
healthcare project pipeline, with over 20 projects currently under construction. British Columbia has also
procured several primary and specialized healthcare facilities through PPP arrangements. Furthermore,
Alberta has awarded contracts (under three separate phases) to design, build, finance and maintain
portfolios of primary schools across the province. In addition to the Montreal University Research Centre
Facility – awarded to a consortium led by Fiera Axium, Quebec has procured two major university hospital
projects, as well as a symphony hall facility under PPP framework.
The Canadian Manager estimates that in excess of 45 social DBFM projects have achieved financial
close in Canada since 2005, with a number of additional projects currently in procurement or intended to
come to market over the coming years.
Opportunities in the social infrastructure sub-sector mainly take the form of greenfield PPPs, whereby
investments in assets would be made prior to the commencement of construction. Government initiated
processes are expected to continue to arise in the greenfield PPP space, as many governments across
the country have established plans to procure a growing number of healthcare, education and institutional
facilities. The Canadian Manager also anticipates a growing number of opportunities to arise in the
secondary social PPP market as developers sell individual or portfolio equity interests in projects that
have already been developed.
2.4.
U.S. Opportunity
U.S. Infrastructure Deficit
Infrastructure has historically served as a fundamental component of U.S. society and economy.
However, the state of U.S. infrastructure has deteriorated greatly in recent decades. Similar to Canada
and other OECD jurisdictions, the neglect and lack of investment in infrastructure stemming from
restrictive fiscal environments have contributed to the deteriorated state of infrastructure in the U.S. Over
the years, supply has failed to address increased demand for services and population growth. The U.S.
49
Report to the Federation of Canadian Municipalities: “Danger Ahead: The Coming Collapse of Canada’s Municipal Infrastructure”,
November 2007
Confidential Information Memorandum
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Section 2.0 – Market Overview and Opportunity
infrastructure deficit is widely recognized and accepted, with a number of studies pointing to infrastructure
needs in the trillions of dollars. The American Society of Civil Engineers (ASCE) estimates that $1.6
50
trillion is required over the near term to address the country’s staggering infrastructure deficit. Similarly,
the Congressional Budget Office estimates that America needs to spend $20 billion more per year just to
maintain its infrastructure at present, inadequate, levels. Up to $80 billion a year in additional funding
51
could be spent on projects which would show positive economic returns.
Historic Under-investment
52
Infrastructure spending by the U.S. government as a share of GDP peaked at 3.1% in the early 1960s.
Total public spending on infrastructure in 2007 was $356 billion, representing about 2.4% of the nation's
53
GDP. In contrast, European countries and China investments in infrastructure represent 5% and 9%,
respectively, of their total GDP. America's spending as a share of GDP has failed to track European
54
levels in over 50 years.
Infrastructure Spending as a Share of GDP (1957 - 2007)
Percentage of GDP
3.5%
3.3%
3.0%
2.8%
2.5%
2.3%
2.0%
1957
1962
1967
1972
1977
1982
1987
1992
1997
2002
2007
Source: Congressional Budget Office, Public Spending on Transportation and Water Infrastructure, 2010
50
2013 Report Card for America’s infrastructure, American Society of Civil Engineers
Congressional Budget Office, Public Spending on Transportation and Water Infrastructure, 2010
Congressional Budget Office, Public Spending on Transportation and Water Infrastructure, 2010
53
Congressional Budget Office, Public Spending on Transportation and Water Infrastructure, 2010
54
The Economist, Life in the Slow Lane, April 28, 2011
51
52
Confidential Information Memorandum
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Section 2.0 – Market Overview and Opportunity
As illustrated below, since 1960, funds for both capital investment and operations and maintenance of
55
U.S. infrastructure stock have steadily declined.
American Public Spending on Transport and Water Infrastructure (1956 - 2007)
3.5%
Percent of GDP
3.0%
2.5%
2.0%
1.5%
1.0%
0.5%
Capital
0.0%
1956
1961
Operations and Maintenance
1966
1971
1976
1981
1986
1991
1996
2001
2006
Source: The Economist, Life in the Slow Lane, April 28, 2011
The jurisdictional responsibility for funding the majority of public infrastructure (75%) rests with state and
local governments, with the federal government accounting for only 25% of infrastructure spending. Of
particular note, state and local governments account for about 90% of total public spending on operation
56
and maintenance of public infrastructure. As depicted in the graph below, the proportion of infrastructure
spending borne by state and local governments (both in terms of capital spending and operations &
maintenance) has grown steadily over the years, while spending at the federal level has not followed suit.
Projected state budget gaps in 2009 alone were estimated to be in the range of $89 billion with 44 states
57
projected to face budget shortfalls, some in the tens of billions of dollars.
Over-burdened states and
municipalities evidently do not have the capacity to bear continued responsibility for the overwhelming
majority of public infrastructure spending.
Infrastructure Capital Spending by Jurisdiction (1957 - 2007)
Billions of 2009 Dolalrs
$200
$150
State & Local Operations & Maintenance
State & Local Capital Spending
Federal Capital Spending
Federal Operations & Maintenance
$100
$50
$0
1957
1962
1967
1972
1977
1982
1987
1992
1997
2002
2007
Source: Congressional Budget Office, Public Spending on Transportation and Water Infrastructure, 2010
55
The Economist, Life in the Slow Lane, April 28, 2011
Congressional Budget Office, Public Spending on Transportation and Water Infrastructure, 2010
57
Benefits of Private Investment in Infrastructure, January 2009
56
Confidential Information Memorandum
36
Section 2.0 – Market Overview and Opportunity
Aging Infrastructure
The American Society of Civil Engineers’ (ASCE’s) 2013 “Report Card” for America’s Infrastructure
grades 15 different categories of infrastructure and delivers a barely passing cumulative grade of “D” to
the nation’s infrastructure, showing no improvement from their last report published in 2009. Delayed
maintenance and chronic underfunding are contributors to low grades in nearly every category, with no
58
grade higher than a “C” issued.
2013 Report Card for America's Infrastructure
Estimated 5-Year Investment Neeeds (dollars in $2010 billions)
Category
Aviation
Dams
Drinking Water and Wastewater
Energy
Hazardous Waste and Solid Waste
Inland Waterways & Marine Ports
Levees
Public Parks and Recreation
Rail
Roads, Bridges and Transit
Schools
US Infrastructure GPA Total
Report Card Grade
Total Needs
Funding Gap
D
D
D and D
D+
D and BDDCC+
D, C+, D
D
134
21
126
736
56
30
80
238
100
1723
391
39
15
84
107
46
16
72
104
11
846
271
D+
3635
1611
Source: 2013 Report Card for America's Infrastructure, American Society of Civil Engineers
Each category was evaluated on the basis of capacity condition, funding, future need, operations and
maintenance, public safety, and resilience.
A = Exceptional, B = Good, C = Mediocre, D = Poor, F = Failing
Renewed Public Sector Commitment
In 2009, as part of its effort to address the nation’s infrastructure deficit, the U.S. federal government
appropriated $62 billion in funding for transportation and water infrastructure under the American
Recovery and Reinvestment Act (“ARRA”). The Congressional Budget Office estimates that by year end
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2013, 90% of the funds made available through ARRA for infrastructure will have been spent.
As
depicted in the graph below, infrastructure outlays for transportation and water projects made available
through the ARRA peaked in 2010, and are expected to decline over the coming years. The
Congressional Budget Office expects cumulative spending for infrastructure under ARRA to total $54
60
billion in 2013, leaving less than $8 billion in stimulus funding to be spent over the next seven years.
58
2013 Report Card for America’s Infrastructure, American Society of Civil Engineers
Business Insider - The Alarming Collapse of U.S. Infrastructure Spending, November 4, 2011
60
Business Insider - The Alarming Collapse of U.S. Infrastructure Spending, November 4, 2011
59
Confidential Information Memorandum
37
Section 2.0 – Market Overview and Opportunity
Billions of Nominal Dollars
US Stimulus Spending
$25
Water Supply & Wasterwaster Treatment
Water Transportation & W ater Resources
$20
Aviation, Mass Transit & Rail
Highways
$15
$10
$5
$0
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Source: Congressional Budget Office, Public Spending on Transportation and Water Infrastructure, 2010
Despite the fact that different studies and sources point to varying levels of infrastructure spending needs,
it is clear to the US Manager that current levels of government spending fall significantly short of what is
needed. Growing urgency to address new and deferred infrastructure deficiencies has led federal, state
and local governments to seek private capital involvement in a number of infrastructure initiatives.
Framework for Private Capital Involvement
Although the U.S. infrastructure market is still in its early stages, private investment opportunities have
become more prevalent as the public sector looks to attract capital and resources to repair, modernize,
construct and maintain new and existing infrastructure assets. The U.S., unlike other countries with more
mature infrastructure investment frameworks, is still viewed as an emerging market with respect to private
investment in infrastructure, where recent infrastructure failures have arisen from a combination of
increased usage, neglect and under-investment. Major infrastructure failures have made headlines in
recent years, including the California electricity crisis (2000-01), the power blackout in Northeastern North
America (2003), the New Orleans levee breaches (2005) and the Mississippi River Bridge collapse in
Minnesota (2007). These events underscore the glaring need for improved maintenance and system
upgrades.
The U.S. remains a strong long-term prospect for private investors due to the substantial backlog in
infrastructure renewal and development, as well as increasing recognition of the economic cost that aging
infrastructure creates.
The following highlights the funding shortfall in selected major areas of infrastructure and gives an
indication as to the opportunity for private sector participation.
Opportunities Landscape – Energy and Utility Infrastructure
The US Manager expects that a significant portion of deal flow in the U.S. market will arise from
opportunities in the power generation, transmission and distribution sectors. Given the overall dynamics
of the U.S. infrastructure market, the US Manager expects to devote significant attention and effort
pursuing investment opportunities in the U.S. energy market. Secondary market activity in the U.S.
energy space has increased significantly in recent years, with activity expected to continue to see strong
growth over the near term. Transactions in the gas, wind and solar sectors continue to arise as
developers integrate downstream and sell operating and greenfield development assets and portfolios as
part of their need to recycle capital and monetize development profits.
Confidential Information Memorandum
38
Section 2.0 – Market Overview and Opportunity
In the past, the U.S. electricity generation market was highly regulated with energy rates established to
cover operating costs and provide a reasonable return on equity. The Energy Policy Act of 1992 provided
for the establishment of an unregulated power market where electricity could be sold at market-based
rates.
This encouraged the development and construction of power generation capacity from
independent power producers. The U.S. energy market can now be characterized as a deregulated
market with privately-owned utilities and power producers providing energy to about 75% of U.S.
consumers, and the remaining 25% operated by state and local government agencies and electric
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cooperatives.
Over the past 20 years, investment in U.S. electricity generation and transmission has
declined in real terms, and approximately half of the country’s generation facilities are more than 30 years
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old. Generation and transmission systems across the U.S. require substantial investment with capital
required to improve efficiencies in existing generation, develop new generation and improve / modernize
transmission and distribution systems. It has been estimated that the investment gap for distribution and
transmission infrastructure is $57 billion and $37 billion respectively, by 2020. The estimated cumulative
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total needs for electric utility investment needs could be as much as $750 billion by 2020.
Gas-Fired Generation
Due to environmental regulations, over 71 GW of fossil-fired generation is expected to be retired by 2022.
Although these retirements are not projected to create major reserve margin issues or resource adequacy
concern, it is expected that the adoption of efficient combined-cycle technology and the emergence of
domestic shale gas, will create a period of rapid growth for new gas-fired generation capacity additions
over the next 10 years.
According to NERC, gas-fired generation will represent the premier choice for new base load generation
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capacity in North America. 47.9 GW of variable generation is forecasted to come online by 2021, with
44.9 GW of gas-fired capacity (mainly resulting from the retiring of coal-fired capacity) expected to be in
65
service by 2021.
As such, the US Manager believes that there will be a significant amount of
opportunities for investment in greenfield and operating gas-fired generation facilities.
Renewable Energy Generation
Although electricity consumption has decreased in recent years due to economic conditions, demand is
forecasted to rebound over the next decade as the global economy improves. Demand for power in the
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U.S. is expected to increase three times as fast as new generation resources will be added. In order to
accommodate increasing demand, as well as to achieve 80% of its total electricity supply from clean
sources by 2035, generation from renewable energy is anticipated to grow, accounting for approximately
67
one third of the U.S.’ estimated growth in electricity production from 2010 to 2035.
The US Manager
believes that procurement of renewable energy sources including wind, solar and hydroelectric will be
needed to address the State Renewable Portfolio Standards (RPS) in the coming years.
(i) Wind Power
Wind power generation assets are growing in importance in many regions of the U.S. According to the
American Wind Energy Association (AWEA), the U.S. currently has approximately 60 GW of installed
wind power capacity, with 10 states now generating over 10% of their electricity from wind power
(Colorado, Iowa, Kansas, Minnesota, North Dakota, Oklahoma, Oregon and South Dakota, and
61
2013 Report Card for America’s Infrastructure, American Society of Civil Engineers
The United States of America Federal Energy Regulatory Commission
63
2013 Report Card for America’s Infrastructure, American Society of Civil Engineers
64
NERC 2011 Long Term Reliability Assessment (November 2011)
65
NERC 2011 Long Term Reliability Assessment (November 2011)
66
North American Electric Reliability Council
67
U.S. Energy Information Administration Annual Energy Outlook 2012 Early Release Overview
62
Confidential Information Memorandum
39
Section 2.0 – Market Overview and Opportunity
68
Wyoming). As of June 30th, 2013, there were more than 1,280 MW of wind capacity under construction
69
in eight states.
RPS requirements, and the federal wind energy Production Tax Credit (PTC) have contributed to the
rapid growth of wind capacity installations throughout the U.S. Wind generation has provided utilities the
chance to diversify their portfolios of power generation resources away from traditional fossil fuel based
power.
Despite the political uncertainty regarding the extension of the PTC, the US Manager expects
opportunities in the U.S. wind sector to arise via investment in late-stage greenfield projects already
underway, as well as private-to-private transactions in respect of operational projects as developers seek
to monetize development profits and recycle capital.
(ii) Solar Power
Solar generation is expected to continue to experience rapid growth in nameplate capacity additions over
the next five years in the U.S as installation costs fall and utilities need to procure additional renewable
power to meet RPS. Projections for new solar in WECC, account for most of the 7 GW of NERC-wide
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solar additions expected during the next 10 years. The extension of the Investment Tax Credit (ITC) for
solar projects that reach commercial operations prior to year end 2016, as well as the rapid reduction in
the total capital costs for solar generation systems, is anticipated to drive the continued development and
construction of new solar projects in California, Arizona, Nevada, New Jersey, New Mexico and a variety
of other states that have incentive programs for solar generation.
Most of the leading states for utility-scale PV facilities have RPS policies with a solar requirement. In
California, investor owned utilities have signed power purchase agreements for utility-scale solar facilities
in order to meet its aggressive 33% by 2020 RPS standard. In New Jersey, the RPS contains a solar
requirement which calls for over 5,300 GWh of generation from solar resources on an annual basis by
2026. Massachusetts recently surpassed their initial goal of 250 MW of solar capacity by 2017, and has
recently increased their target to 1.6 GW by 2020.
Similar to wind power, the US Manager expects opportunities in the U.S. solar sector to arise via
investment in late-stage greenfield projects, as well as acquisition opportunities in respect of operational
facilities.
(iii) Hydroelectric Power
According to the U.S. Energy Information Administration (EIA), hydroelectric power plants in the U.S.
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generated 257 million MWh of electricity in 2010, or 6.1% of all electricity generated in the country. The
U.S. hydro sector is such that hydropower project ownership can be categorized as federal or nonfederal.
The bulk of federal projects are owned and managed by the Bureau of Reclamation and the U.S. Army
Corps of Engineers (USACOE). Nonfederal projects are licensed and overseen by the Federal Energy
Regulatory Commission (FERC).
Federal projects account for the majority of hydropower capacity, while nonfederal projects involving the
private sector (e.g., private utility, private non-utility, and industrial entities) owns the majority of individual
hydropower projects (mainly small and medium-sized plants). According to a 2006 Idaho National
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AWEA 2012 Year End Market Report
AWEA U.S. Wind Industry Second Quarter Market Report 2013 (July 2013)
70
NERC 2013 Long Term Reliability Assessment (November2013)
71
Congressional Research Service Report for Congress Hydropower: Federal and Nonfederal Investment (June 26, 2012)
69
Confidential Information Memorandum
40
Section 2.0 – Market Overview and Opportunity
Lab (INL) study, the private sector owns two-thirds of U.S. hydropower plants. However, private plants
72
account for just over 25% of production capacity.
Today, the USACOE owns and operates 353 generating units at 75 power stations, with a total estimated
capacity of 25.8 GW, or approximately one-fourth of all national hydropower capacity. Hydropower
generating units have a nominal 50-year life expectancy, and many USACOE hydropower projects are
73
nearing or exceeding this age.
As a result, a number of projects are being constructed by retrofitting
existing dam infrastructure that is owned and operated by the USACOE or the U.S. Bureau of
Reclamation. Private sources of capital are being employed to re-develop / retrofit these sites under
long-term power purchase agreements with public utilities. The US Manager is of the view that a number
of late-stage greenfield opportunities will continue to arise as private investment is sought to address
capital requirements for federal projects.
According to EIA data, approximately 1,245 nonfederal hydropower plants generated 147,400 GWh of net
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electricity generation in 2010. In addition to investment in greenfield hydro, the US Manager believes
that opportunities exist in relation to the acquisition of individual and/or portfolio interests in operational
hydro assets.
Gas Transmission, Storage and Distribution
Ongoing pipeline expansion is expected to provide increased reliability of gas supply. However,
according to NERC’s 2011 Long Term Reliability Assessment, despite the growth and future expansion of
pipeline capacity, more capacity will ultimately be needed to support the aforementioned gas-fired
capacity build out. As noted above, retirement of coal-fired base load units is anticipated to be replaced
with gas-fired generation in order to meet base load demand. According to NERC, for every 50 GW of
coal-fired capacity retired and replaced by gas-fired generation, an additional 1,200 miles of gas pipelines
75
will be needed to support future gas-fired capacity.
In addition to the additional capacity requirements,
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it has been estimated that 88% of pipeline and 52% of compression capacity is in need of replacement.
In light of these current and forecasted market dynamics, the US Manager believes that a number of
investment opportunities will arise in the U.S. gas transmission, storage and distribution sectors.
Electricity Transmission and Distribution
The electric grid in the United States consists of almost 400,000 miles of electric transmission lines and
77
distribution facilities, some of which date back to the late 1800s. As a result, congestion across the
power grid has caused energy shortages and supply interruptions, including in areas with significant
electricity supply. Substantial investment in generation, transmission and distribution is needed in many
areas of the country over the next two decades to ensure that bulk power systems remain reliable,
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adequate, and secure. Investment is required to install new distribution equipment to meet population
and demand growth, and to expand distribution infrastructure. In addition, long-distance transmission
lines are increasingly being required in order to connect renewable generation projects that are often
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located in remote areas away from load centers, as well as new gas-fired generation.
72
Congressional Research Service Report for Congress Hydropower: Federal and Nonfederal Investment (June 26, 2012)
Congressional Research Service Report for Congress Hydropower: Federal and Nonfederal Investment (June 26, 2012)
74
Congressional Research Service Report for Congress Hydropower: Federal and Nonfederal Investment (June 26, 2012)
75
NERC 2011 Long Term Reliability Assessment (November 2011)
76
Citi Alternative Investments – Investing in Developed Country Private Infrastructure Funds
77
2013 Report Card for America’s Infrastructure, American Society of Civil Engineers
78
North American Electric Reliability Council
79
2013 Report Card for America’s Infrastructure, American Society of Civil Engineers
73
Confidential Information Memorandum
41
Section 2.0 – Market Overview and Opportunity
The US Manager believes that regulatory changes in the U.S. have made transmission opportunities
attractive for independent, non-utility investors. The Energy Policy Act of 2005 included provisions that
introduced a variety of incentive-based rate structures. The regulated return available for developing or
acquiring transmission assets and providing power transmission services can be higher than that
80
available to utilities making the sector attractive for private investors.
These regulatory changes
coupled with the significant need to upgrade and expand systems create significant opportunity for private
sector involvement in the US Manager’s view.
Water and Wastewater Utilities
According to the ASCE, the annual investment for America’s drinking water systems to replace aging
facilities that are near the end of their useful life and to comply with existing and future federal water
regulations will double from nearly $13 billion a year in 2013 to almost $30 billion by the 2040s. Although
Americans continue to benefit from some of the best tap water in the world, the costs of treating and
delivering the water continue to outpace the funds available to sustain the system. Throughout the U.S.,
much of the drinking water infrastructure is old and in need of replacement. In 2012, the American Water
Works Association estimated that the most urgent investment needs for drinking water infrastructure
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could be spread over 20 years at a total cost of $1 trillion. Congressional Budget Office concluded in
2003 that current funding from all levels of government and current revenues generated from ratepayers
would not be sufficient to meet future demand for water infrastructure, citing required investment between
$10 billion and $20 billion over the next 20 years.
The capital investment requirements for wastewater systems throughout the U.S. are also expected to
increase over the next 20 years as they expand capacity to serve demand growth. According to the
ASCE, the physical condition of many of the U.S.’ 16,000 wastewater treatment systems is poor due to a
lack of investment in plants, equipment, and other capital improvements over the years. The U.S.
Environmental Protection Agency estimates that approximately $300 billion of investment is needed over
82
the next 20 years to repair or replace existing wastewater treatment systems.
There are a number of municipal utilities that do not have the resources required to carry out necessary
upgrades and improvements to their systems, and as such look to employ private capital and expertise to
do so. The US Manager believes that an increasing volume of opportunities will arise in this sub-sector
given the capital constraints facing many local utilities. The US Manager expects opportunities to include
the acquisition of existing water system operators, privatization of local water utilities, and concessionbased transactions whereby private counterparties are contracted to construct and/or operate and
maintain water systems.
Opportunities Landscape – Transportation Infrastructure
Roads, bridges and transit systems
According to the ASCE, the total capital investment needs (in 2010 dollars) in the U.S. transportation
sector is approximately $1.7 trillion until 2020. Based on ASCE estimates this is expected to create a
83
funding gap of approximately $846 billion dollars.
The Federal Highway Administration (FHWA)
estimates that in order to eliminate the nation’s bridge deficient backlog by 2028, there would need to be
$20.5 billion in annual expenditures, while only $12.8 billion is being spent currently. The FHWA
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calculates that more than 30% of existing bridges have exceeded their 50-year design life.
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Citi Alternative Investments – Investing in Developed Country Private Infrastructure Funds
2013 Report Card for America’s Infrastructure, American Society of Civil Engineers
2013 Report Card for America’s Infrastructure, American Society of Civil Engineers
83
2013 Report Card for America’s Infrastructure, American Society of Civil Engineers
84
2013 Report Card for America’s Infrastructure, American Society of Civil Engineers
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Confidential Information Memorandum
42
Section 2.0 – Market Overview and Opportunity
Public sector funding in the U.S. for highways from the Federal Highway Trust Fund (HTF) has been
traditionally derived from dedicated fuel and vehicle taxes. However, the HTF is on a path towards
85
bankruptcy due to dwindling gas tax revenues. Tolls were restricted on federal-funded roads, but
permitted on bridges and tunnels. State funding has also been provided by tax exempt bonds issued by
either the state, specific public authorities or publicly-controlled projects. Tax exempt bonds gave public
sector funding of infrastructure a cost advantage over private sector funding, as tax-exempt bonds
generally could not be issued for private sector initiatives. In 2006, about 70% (U.S. $ 260 billion) of all
86
infrastructure finance in the U.S. was raised via municipal revenue bonds.
The historic use of tax
exempt bonds by state and local governments caused the slow development of private capital infusion in
the financing of infrastructure projects throughout the U.S.
In 2005, U.S. Congress established the National Surface Transportation Policy and Revenue Study
Commission. In 2008 the commission estimated that the U.S. needed at least $255 billion per year in
transport spending over the next half-century to keep the system in good repair and make needed
87
upgrades. Current spending falls 60% short of that amount.
In light of the significant funding
challenges, the country has moved to employ private capital; with more than half of states having passed
PPP-enabling legislation supporting private investment in infrastructure.
There is a growing recognition in the U.S. that traditional approaches to funding and procuring highway
and transit projects are inadequate. In recent years, PPPs have been recognized as an innovative
approach to transportation funding and procurement that can reduce costs, accelerate project delivery,
88
transfer risks to the private sector, and provide valuable, high-quality projects. Political support in the
U.S. is growing as PPPs will allow the federal and state governments to fund infrastructure development
without relying solely on the nation’s tax base. In addition, states increasingly recognize that accessing
private capital allows for assets to be developed faster as compared to traditional procurement methods
and funding sources.
Since 2005, eight states have enacted legislation authorizing public authorities to enter into PPPs for
highway and/or transit projects. A total of 25 states now have PPP authority. The U.S. federal government
has continued to encourage PPPs through innovative programs, including the Private Activity Bonds
program, the TIFIA program, Interstate Tolling programs, the SEP-15 program, the Corridors of the Future
st
Program, the FTA's PPP Pilot Program, and more recently the Moving Ahead for Progress in the 21
89
Century (MAP-21) legislation.
85
2013 Report Card for America’s Infrastructure, American Society of Civil Engineers
OECD - Pension Funds Investment in Infrastructure A Survey, September 2011
87
The Economist, Life in the Slow Lane, April 28, 2011
88
U.S. Department of Transportation Federal Highway Administration (http://www.fhwa.dot.gov/reports/pppwave/01.htm April 6,
2011)
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U.S. Department of Transportation Federal Highway Administration (http://www.fhwa.dot.gov/reports/pppwave/01.htm April 6,
2011)
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Confidential Information Memorandum
43
Section 2.0 – Market Overview and Opportunity
States with Transportation PPP Authority
WA
ME
MN
OR
NV
MA
MD
UT
CA
IN
CO
MO
NJ
DE
VA
NC
AZ
TX
AK
LA
SC
MS AL GA
FL
Source: Nossaman LLP, White & Case
PPP’s in the transportation sector are viewed by a growing number of states and municipalities as an
attractive procurement option. Several states have adopted PPPs as a preferred approach for delivery of
new transportation capacity and capital improvements. Texas, California, Florida, Illinois and Virginia
have all successfully employed PPPs for road, highway and tunnel projects. Since 2005, more publicprivate partnerships for surface transportation facilities have reached financial close than during any
90
comparable period in U.S. history.
Among the most prominent of these PPPs have been the Capital
Beltway HOT Lanes, Port of Miami Tunnel, North Tarrant Expressway, Denver FasTracks, Ohio River
Bridges and Presidio Parkway. Currently, there are a number of major highway and transit PPP projects
at various stages of procurement in the U.S.
Despite the fact that state and local authorities across the U.S. are increasingly considering PPPs for
transportation infrastructure, the US Manager believes that continued policy reform is necessary at both
federal and state levels to involve private capital on a scale large enough to address the magnitude of
current infrastructure requirements.
In an effort to address the large funding gap and to combat state funding shortages, the US Manager
expects a growing number of public authorities across U.S. states to consider alternative procurement
methods such as PPPs, as well as privatizing toll roads, bridges and other core transportation assets. As
such, opportunities in the transportation sector will arise mainly through greenfield PPP concessions, and
to a lesser extent, through the acquisition of operational assets via privatizations. The US Manager is
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U.S. Department of Transportation Federal Highway Administration (http://www.fhwa.dot.gov/reports/pppwave/01.htm April 6,
2011)
Confidential Information Memorandum
44
Section 2.0 – Market Overview and Opportunity
also of the view that a growing number of opportunities will arise in the secondary transportation PPP
market through private-to-private transactions, as developers sell individual or portfolio equity interests in
projects that have already been developed under PPP and/or concession-based schemes.
Airports and Seaports
Most commercial service airports in the U.S. are owned and operated by state or local governments.
Public-use general aviation airports are both publicly and privately owned. While ownership of the
overwhelming majority of U.S. airports rests with local, state or regional authorities, the Airport
Privatization Pilot Program provides authorization to allow airports access to sources of private capital for
airport improvement and development. In 2012, the Reauthorization Act increased the number of airports
that could participate in the program from five to ten. The program now permits up to ten public airport
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sponsors to sell or lease an airport (subject to certain restrictions). According to the FAA, 3,355 publicuse airports are estimated to have $42.5 billion in development needs between 2013 and 2017. In
addition, the FAA stated the national cost of airport congestion and delays was almost $22 billion in 2012.
If current federal funding levels are held constant, the FAA anticipates this cost will increase to $34 billion
92
in 2020 and $63 billion by 2040. Capital funding currently available to airports falls significantly short of
these needs. Although the US Manager expects investment opportunities in the airport space to be
limited in number, given the magnitude of capital needs that exist, it is evident to the US Manager that
continued reliance on public sources of airport funding may not be sufficient to meet future expenditure
needs. As such, the US Manager is of the view that private sector capital will be increasingly employed in
the future.
U.S. ports and their private sector partners plan to spend more than $46 billion over the next five years on
improvements to and new port facilities, according to the American Associate of Port Authorities.
Although the recent recession has had a negative effect on containerized ocean trade, U.S. port
utilization is expected to increase in the coming years as world trade growth rebounds. As such, the US
Manager believes that the development of new terminals and upgrade of existing terminals provides
ongoing opportunity for private sector involvement.
Freight and Passenger Rail
Approximately 42% of all intercity freight in the U.S. travels via rail, and demand for freight transportation
93
is projected to nearly double by 2035 - from 19.3 billion tons in 2007 to 37.2 billion tons in 2035. Given
the capacity constraints of freight railroads, there is an increasing need for investment in intermodal
terminals, additional track capacity for ports and long-haul corridor upgrades on bridges and tunnels to
accommodate double stacked trains. The U.S. rail network is made up of more than 160,000 miles of
track, 76,000 rail bridges, and 800 tunnels across the nation that are shared by all operators moving
freight and passengers. According to the ASCE, an estimated $100 billion in improvements will be
94
needed to accommodate the projected infrastructure improvements in rail by 2020. The US Manager
believes that opportunities to mobilize private capital in rail infrastructure, particularly terminals and rail
facilities will become more prevalent in light of the magnitude of needs that exist.
Amtrak, the nation’s only intercity passenger rail provider, carried approximately 31 million riders in fiscal
year 2012, showing a 50% increase in ridership from fiscal year 2000. By 2040, Amtrak is planning for
traffic in the Northeast Corridor to quadruple from today’s ridership. To meet future demand in this region,
the railroads utilized by Amtrak and eight other commuter railroads in this region are estimated to require
95
investments of about $10 billion and an increase in train capacity by 40%.
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http://www.faa.gov/news/fact_sheets/news_story.cfm?newsId=13333
Federal Aviation Administration (Report to Congress: National Plan of Integrated Airport Systems (NPIAS) 2013-2017)
(September 2012)
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Citi Alternative Investments – Investing in Developed Country Private Infrastructure Funds
94
2013 Report Card for America’s Infrastructure, American Society of Civil Engineers
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2013 Report Card for America’s Infrastructure, American Society of Civil Engineers
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Confidential Information Memorandum
45
Section 2.0 – Market Overview and Opportunity
It is clear to the US Manager that both freight and passenger rail require improvements and expansion in
rail network capacity, which the US Manager believes will involve private investment participation.
Opportunities Landscape – Social Infrastructure
Public-Private Partnerships
Opportunities in the U.S. social infrastructure sector predominantly entail availability based PPP
structures whereby governments will enter into concession arrangements with private counterparties for
the design, construction, operations and maintenance of assets. The US Manager is of the view that
social assets comprising schools, hospitals, courthouses and other institutional buildings will be
increasingly procured under PPP framework. According to the ASCE, investment needs for U.S. school
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projects alone totals $390 billion until 2020. In response to ongoing budget deficits, and the glaring need
to replace and renew critical social infrastructure, the US Manager is of the view that a number of U.S.
states with PPP authority will seek to engage private capital, in varying forms and degrees, as a means of
addressing their needs over the coming years.
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2013 Report Card for America’s Infrastructure, American Society of Civil Engineers
Confidential Information Memorandum
46
3. Fund Structure
Confidential Information Memorandum
47
Section 3.0 — Fund Structure
Section 3.0 – Fund Structure
3.1.
Overview of the Funds
The North American Fund is a limited partnership that is established as an open-ended “feeder” fund that
will invest in limited partnership units of each of the two separate country funds — Fiera Axium
Infrastructure Canada II Limited Partnership and Fiera Axium Infrastructure US LP, which are also openended limited partnerships.
The North American Fund and the Canadian Fund are limited partnerships formed pursuant to the laws of
the Province of Québec, Canada and the US Fund is a limited partnership formed pursuant to the laws of
the State of Delaware, United States.
The Canadian Fund is a limited partnership that is structured as an open-ended fund whose purpose is to
acquire and hold investments in Canadian assets. The US Fund is a limited partnership that is structured
as an open-ended fund whose purpose is to acquire and hold investments in U.S. assets.
The simplified conceptual diagram below illustrates the legal structure of the Funds. This diagram does
not present all the various entities comprising the Funds and certain other features of the Funds. The
General Partners (as hereinafter defined) reserve the right to change the manner in which the Funds
acquire and hold interests in the Funds’ investments, including or forming intermediary entities.
Fiera Axium
Infrastructure Inc.
(Manager)
Fiera Axium Infrastructure
Canada Partner Inc.
(General Partner)
Fund Advisory
Committee
Limited Partners
(LP1, LP2, … LPn)
Fund Advisory
Committee
Investment
Committee
Fiera Axium Infrastructure
North America Partner Inc.
(General Partner)
Fiera Axium
Infrastructure US Inc.
(Manager)
Fiera Axium Infrastructure
North America L.P.
(Feeder Fund)
Fiera Axium Infrastructure
US Partner LLC
(General Partner)
US
Blocker
Fund Advisory
Committee
Limited Partners
(LP1, LP2, … LPn)
Fiera Axium
Infrastructure
Canada II L.P.
(Country Fund)
Fiera Axium
Infrastructure
US L.P.
(Country Fund)
Limited Partners
(LP1, LP2, … LPn)
FAI
Investment Inc.
(Limited Partner)
Canadian Portfolio
Investments
US Portfolio
Investments
FAI US
Investment Inc.
(Limited Partner)
The Funds will aim to hold investments through limited liability, tax flow-through (where possible) special
purpose vehicles.
Confidential Information Memorandum
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Section 3.0 — Fund Structure
Rationale for Open-Ended Structure
The Funds will pursue the same fundamental investment objective as Fiera Axium’s inaugural Canadianfocused, closed-end infrastructure fund – Fiera Axium Infrastructure Canada LP (“FAICLP”), in that they
will seek to assemble a diversified portfolio of high-quality core infrastructure assets. In contrast to
FAICLP, the Funds will benefit from what the Managers believe to be a structural improvement, in that
they will be established as open-ended vehicles having indefinite terms (subject to the terms and
conditions of each Fund’s Limited Partnership Agreement). For a discussion of FAICLP and its
investment activity, please refer to Section 1.4 “Overview of Fiera Axium Infrastructure Inc.”
The Managers believe that an open-ended structure with an indefinite term is inherently more aligned with
the long-term nature and investment horizon characteristic of infrastructure assets. The Managers view
this fund structure to be consistent with their long-term investment approach, and fundamental objective
of creating value through harvesting free cash flow over the full life cycle of assets. Most core
infrastructure assets benefit from long-term contractual arrangements (typically spanning 30 years or
more) with creditworthy counterparties, under concession-based structures. In fact, certain assets, for
example, hydroelectric facilities and highways, have virtually perpetual useful lives if operated and
maintained adequately. In light of the inherent nature of these real assets, the value of a portfolio of
infrastructure assets is derived from the stable and highly predictable cash flow profiles they provide.
In contrast to traditional closed-end structures with a finite fund term, an open-ended structure allows for
assets to be held over the long-term, and does not impose requirements to divest assets when unwinding
the fund. Given that no definitive requirement or timeframe exists to divest of Portfolio Investments, the
Funds may seek to create liquidity and maximize targeted returns through selectively and
opportunistically exiting investments to the extent that prevailing market conditions and other factors
permit.
The Managers are also of the view that an open-ended structure provides enhanced diversification
benefits, as it mitigates the impact of macroeconomic factors and market cyclicality / volatility, given that
assets are acquired and added to the portfolio over an extended period of time. Closed-end structures
entail that assets be acquired and sold within specified timeframes, regardless of economic conditions.
Infrastructure projects are often pursued by consortia, or groups of market participants that form teams in
order to assemble the requisite expertise and capabilities necessary to successfully transact in auction or
competitive processes. The Managers believe that an indefinite fund term and open-ended structure
provides greater comfort to consortium partners and government counterparties who look to transact with
entities that exist indefinitely. Furthermore, ongoing access to capital provides greater certainty to
eventual partners on the Funds’ capacity to pursue and fund new investments.
Finally, the open-ended structure will provide Limited Partners with the ability to transact on their fund
units (subject to certain terms and conditions) to the extent that they seek to do so, thereby providing for
some level of liquidity.
Capital Commitments and Fund Closings
The Managers intend to accept capital commitments to the Funds periodically, in their sole discretion, as
applicable. All capital commitments made to a Fund on the same acceptance date will constitute a
“Vintage” of that Fund.
The Managers will seek to establish periodic fund raising objectives with the goal of ensuring that the
Funds have sufficient capital to accommodate approximately two years of projected deal flow.
Confidential Information Memorandum
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Section 3.0 — Fund Structure
3.2.
Management of the Funds
The General Partners
Fiera Axium Infrastructure North America Partner Inc. (the “North American General Partner”), a
corporation established under the laws of Canada, is a subsidiary of Fiera Axium Infrastructure Inc. (the
“Canadian Manager”) and is the General Partner of the North American Fund.
Fiera Axium Infrastructure Canada Partner Inc. (the “Canadian General Partner”), a corporation
established under the laws of Canada, is a subsidiary of the Canadian Manager and is the General
Partner of the Canadian Fund.
Fiera Axium Infrastructure US Partner LLC (the “US General Partner”), a limited liability company formed
under the laws of the State of Delaware, is a subsidiary of Fiera Axium Infrastructure US Inc. (the “US
Manager” and, together with the Canadian Manager, the “Managers”) and is the General Partner of the
US Fund. The US Manager is a corporation incorporated under the laws of the State of Delaware, and is
a subsidiary of the Canadian Manager.
The General Partner of each Fund (acting directly or through their duly appointed agents (including their
respective Managers)) will have overall responsibility for the management of the applicable Fund and for
making investment decisions. The General Partner of each Fund is vested with full, exclusive and
complete right, power and discretion to operate and conduct the affairs of the applicable Fund.
The respective General Partner of each Fund shall have unlimited liability for the debts, liabilities and
obligations of its Fund, in accordance with applicable law. Each of the North American General Partner,
the Canadian General Partner and the US General Partner will be managed by its respective Board of
Directors or Board of Managers (as applicable) which will be composed of members of the management
team of the Canadian Manager or the US Manager, as applicable.
The Managers
Pursuant to the terms of Management Services Agreements (the “Management Services Agreements”),
each of the North American General Partner and the Canadian General Partner, respectively, has
delegated to the Canadian Manager substantially all of its management rights and certain obligations
under the North American Fund’s Limited Partnership Agreement and the Canadian Fund’s Limited
Partnership Agreement, respectively. Similarly, the US General Partner has delegated to the US Manager
substantially all of its management rights and certain obligations under the US Fund Limited Partnership
Agreement. In connection with such delegation, each Manager is entitled to bind its Fund as attorney-infact for the Fund and its General Partner.
The Managers will be responsible for sourcing, selecting, evaluating, executing and managing
investments. The Managers will be entitled pursuant to the Management Services Agreements to hire, on
behalf of the applicable General Partner, third-party experts to review areas including technical, legal,
financial, tax, accounting, insurance and environmental, and will be entitled to use external experts,
consultants and advisers at each stage of its investment process.
U.S. Blocker
Fiera Axium Infrastructure U.S. Blocker Inc., a Delaware corporation (the “U.S. Blocker”) is interposed
between the North American Fund and the US Fund in order to minimize the U.S. tax liability and tax
return filing obligations of the Canadian Limited Partners in the North American Fund.
Confidential Information Memorandum
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Section 3.0 — Fund Structure
3.3.
Investment Committee
Each of the Canadian Fund and the US Fund have established an investment committee (the
“Investment Committee”) which are and will be comprised of the same individuals.
Each Investment Committee will (i) analyse, study, review and, if deemed appropriate, approve or make
recommendations in respect of all investments and disposals contemplated by the Canadian Fund and
the US Fund and (ii) provide guidance to the General Partners on other matters brought to the Investment
Committee by the General Partners.
Each Investment Committee initially comprises up to ten members appointed by the Canadian General
Partner and the US General Partner, acting together. Each Investment Committee will consist of the
same individuals as the other General Partner’s Investment Committee, and will at all times include up to
three, but not less than two independent members who are not members of, or related to the
management team of either of the Managers.
Confidential Information Memorandum
51
4. Fund Management
Confidential Information Memorandum
52
Section 4.0 – Fund Management
Section 4.0 – Fund Management
4.1.
Management of the Funds
Pursuant to the terms of Management Services Agreements, the respective General Partner of each
Fund has delegated to its respective Manager substantially all of their management rights and certain
obligations under its respective Limited Partnership Agreement. In connection with such delegation, each
Manager will be entitled to bind the relevant Fund as attorney-in-fact for the Fund and its General Partner.
Each Manager has overall responsibility for the management of its respective Funds and for making
investment decisions. The Managers will carry out all aspects of the investment process in accordance
with the established investment strategy and respective policies of the Funds.
Fiera Axium Infrastructure Inc. serves as Manager of the North American Fund and the Canadian Fund.
Fiera Axium Infrastructure US Inc., a subsidiary of Fiera Axium infrastructure Inc., serves as Manager of
the US Fund. Fiera Axium Infrastructure Inc. and Fiera Axium Infrastructure US Inc. are herein referred to
together as the “Managers”. Fiera Axium Infrastructure Inc. is not registered as an adviser or an
investment fund manager with any securities regulatory authority in Canada. Fiera Axium Infrastructure
US Inc. is registered as an exempt reporting adviser with the U.S. Securities and Exchange Commission.
4.2.
Overview of the Managers
The Managers combine the capabilities of a group of professionals with extensive infrastructure
development and management backgrounds, with the fund management resources and expertise of one
of Canada’s leading independent investment management firms in Fiera Capital.
Each of the Managers has comprised a team of highly-qualified infrastructure investment specialists with
decades of combined experience acquiring, developing, financing, operating and managing infrastructure
assets and companies. Management team members comprise individuals with diverse backgrounds
benefiting from a combination of strategic, technical, financial, legal and operational skills necessary to
execute on investment strategies and develop and manage infrastructure assets.
The US Manager is a corporation incorporated under the laws of the State of Delaware, and is a wholly
owned subsidiary of the Canadian Manager.
The Canadian Manager is jointly controlled by Fiera Capital Corporation (“Fiera Capital”) and Axium
Infrastructure Management Inc. (“Axium Infrastructure Management”), and is approximately 50%
owned by their management team, providing for strong alignment of interest with its Limited Partners.
The Canadian Manager is an independent infrastructure fund manager dedicated to investing in core
infrastructure assets. The firm was established in 2008 as a corporation under the laws of Canada, and,
in addition to serving as the manager of the Canadian Fund and the North American Fund, is currently the
manager of an exclusively Canadian-focused, privately-held closed-end infrastructure fund - Fiera Axium
Infrastructure Canada LP (“FAICLP”).
Limited partners in FAICLP comprise prominent Canadian institutional investors, pension plans and high
net worth individuals. FAICLP is focused on both operating and late-stage greenfield investment
opportunities, and seeks to make equity investments in energy, transportation and social infrastructure
assets across Canada.
As of March 31, 2013, FAICLP held equity interests in seven infrastructure assets including: (i) the CHUM
Research Centre project (initial phase of the Centre hospitalier de l’Université de Montréal (CHUM)
modernization project); (ii) the Sea-to-Sky Highway Improvement project servicing the VancouverWhistler corridor; (iii) the Anthony Henday Drive Southeast Leg Ring Road project forming part of the ring
Confidential Information Memorandum
53
Section 4.0 – Fund Management
road serving the City of Edmonton; (iv) an indirect investment in 407 International, the operator of a
108km all-electronic toll highway traversing the Greater Toronto Area; (v) the 100MW Vents du Kempt
wind power project to be constructed in the Gaspésie region of Québec; (vi) the Elmsley solar PV projects
having aggregate generation capacity of 24 MW located near Ottawa, Ontario; and (vii) the St. Isidore
solar PV projects having aggregate generation capacity of 23 MW located near Ottawa, Ontario.
All of the capital commitments in FAICLP have either been invested, or have been committed for various
investment in projects, the Canadian Manager having assembled a diversified portfolio of high-quality
Canadian infrastructure assets.
Fiera Capital
With approximately $67 billion in assets under management (as at September 30,
2013), Fiera Capital is a Canadian leader in investment management that is
renowned for its excellence in portfolio management and innovative solutions.
Fiera Capital is one of only a handful of independent investment firms providing
extensive expertise in Canadian active and structured fixed income, Canadian and foreign equity, asset
allocation and non-traditional investment solutions through a broad range of strategies.
With offices in Montréal, Toronto, Vancouver, Halifax and New York, the firm has over 255 employees
and benefits from the expertise and diversified experience of approximately 100 investment professionals
servicing a highly diversified clientele comprised of pension funds, foundations, religious and charitable
organizations, high net worth individuals, financial institutions, mutual funds and managed asset
platforms.
Fiera Capital’s ownership structure entails both private and public share ownership. The firm is majorityowned through the collective ownership of Fiera Capital L.P. (a portion of whose outstanding voting
interests are owned indirectly by Mr. Jean-Guy Desjardins) and the National Bank of Canada. The
remaining minority stake in the firm is publicly traded on the Toronto Stock Exchange under the ticker
symbol “FSZ”.
Notwithstanding its diverse shareholder base, it is important to note that Fiera Capital is controlled by its
senior management and principals. Jean-Guy Desjardins, Chairman of the Board of Directors or Board of
Managers of the Managers and a member of the Board of Directors or Board of Managers of the General
Partners, as applicable, is the controlling shareholder of Fiera Capital and serves as its Chairman of the
Board, Chief Executive Officer and Chief Investment Officer.
Axium Infrastructure Management Inc.
Axium Infrastructure Management Inc. is a holding vehicle established and owned by the President and
Chief Executive Officer of Fiera Axium Infrastructure, Mr. Pierre Anctil, a long time infrastructure
investment professional.
Ownership Structure of the Managers
The adjacent graph provides a summary of the ownership structure of the Canadian Manager and
(indirectly) the US Manager. As depicted, the Canadian Manager is owned 50% by its management
team, strongly aligning the interests of the management team with Limited Partners.
Confidential Information Memorandum
54
Section 4.0 – Fund Management
The US Manager has been established as a wholly
owned subsidiary of the Canadian Manager. U.S.
management team members will be invited to become
shareholders of the US Manager, with the Canadian
Manager retaining control.
Fiera Axium Infrastructure Inc. - Ownership Structure
Fiera Capital
(Jean-Guy Desjardins
and others)
Axium Infrastructure
Management
(Pierre Anctil)
35%
35%
Compensation Structure of the Managers
In addition to a competitive base salary, compensation
15%
15%
for management team members includes both shortMaxsa Holdings
Other Members of
(Maxime-Jean Gerin)
Canadian Management
term and long-term incentive components. The shortTeam
term incentive component is linked to the overall
performance of the Managers, as well as the performance of the Funds. The long-term incentive
compensation component will be linked directly to participation in carried interest and growth in the value
of the limited partnership units of the Funds.
4.3.
Manager Value Proposition
The Managers combine the capabilities of a group of professionals with extensive infrastructure
development and management backgrounds, with the fund management expertise and resources of one
of Canada’s leading independent fund managers in Fiera Capital.
Experienced Team of Professionals
Fiera Axium was founded to bring together two pillars of infrastructure expertise – a strong technical
understanding of the engineering and construction aspects of developing and operating infrastructure
assets, and the financial capability to structure transactions. A seasoned group of professionals has been
assembled having decades of combined experience in acquiring, developing, financing, operating and
managing infrastructure assets. The management team comprises individuals with diverse backgrounds
benefiting from a combination of strategic, technical, financial, legal and operational skills necessary to
execute on investment strategies and develop and manage infrastructure assets. The team has
exceptional experience in principal investing, infrastructure development, project finance and business
development gained within the Canadian and U.S. markets and internationally. Furthermore, the fact that
management team members have varied backgrounds in the sector, with experience through different
economic cycles and across a number of jurisdictions, affords them with the requisite skills and
experience to effectively assemble and manage a high-quality portfolio of assets.
Specialized Technical Expertise
Fiera Axium is one of few managers that employs professionals with expertise not only from a financial
standpoint (debt, equity, financial advisory), but also deep technical expertise (construction, engineering,
operations and asset management). The team’s multi-disciplined approach and diverse background
facilitates grass roots knowledge of the infrastructure asset class and a fundamental understanding of key
risk factors and drivers of performance. The Managers employ an integrated investment approach with an
underlying philosophy that is focused not only on the development and financing of assets, but also on
operations and asset management aspects that are critical to the long-term performance of investments.
The management team is well-qualified to successfully identify, select and develop late-stage greenfield
projects. This unique expertise enables the team to effectively assess and finance greenfield
development and construction risk. Team members have the knowledge and experience required to
evaluate risks associated with procurement, contractor selection, construction, commissioning, operations
and maintenance of infrastructure assets over the long-term. Members of the management team have
extensive experience contracting with the public sector, and have developed favourable reputations
among government agencies and local procurement bodies. The team has long-standing relationships
Confidential Information Memorandum
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Section 4.0 – Fund Management
with leading contractors and industrial partners possessing exceptional development and operational
qualifications.
Active Asset Management Approach
The management team has a proven track record of operating and maintaining assets and managing
infrastructure companies. Team members have the skills and experience necessary to manage issues
relating to the implementation of best operating practices, tracking of key performance indicators, and
implementation of strategies aimed at maximizing the value of Portfolio Investments.
Post-investment monitoring will form a critical component of the asset management process, and
represent what the Managers believe to be a distinguishing factor from many others in the sector. The
Managers actively represent the Funds, participating in all major decisions of investment oversight, and
work to undertake activities that optimize value for the Funds. While the Funds will not systematically
seek a majority controlling interest in respect of all of their investments, significant influence on the board
of such investments is considered to be critical, particularly regarding issues relating to strategy,
management, capital spending and finance. Where appropriate, the Managers will appoint their own
employees to the boards of Portfolio Investments, to monitor performance and support implementation of
strategic and operational improvements.
The Managers’ active asset management approach seeks to optimize value creation for the Funds. Postinvestment activities with the goal of achieving operational, strategic and financial enhancements at the
asset level include, but are not limited to:





ensuring that best practices are implemented and operational improvements are carried out;
ensuring appropriate management incentive plans;
implementing efficient financial controls and rigorous budgeting regimes;
executing asset expansions and/or follow-on acquisitions, where applicable; and
periodic review of capital structure optimization opportunities.
The Managers benefit from an in-house team of asset management professionals dedicated to ensuring
that the interests of the Funds are preserved throughout the life of investments.
Independence
The Managers are fully independent entities that are not sponsored or affiliated with an investment bank
or debt provider, thereby ensuring that the capital structure of investments is optimized.
Alignment of Interests
The ownership structure of the Managers is tailored towards the long-term performance of Portfolio
Investments. Fiera Axium Infrastructure differs from other managers where investment professionals are
employees without a vested stake in the performance of their fund. The Managers believe that their
ownership structure provides confidence that investment decisions will be made with a long-term focus in
mind, and that strong alignment of interest will exist between the Managers and Limited Partners in the
Funds. This is supported by the following key features of the Managers:



Management team members own 50% of the Managers. The Managers’ ownership structure strongly
aligns the interests of its management team with those of the Limited Partners of the Funds.
The Managers will commit to invest 1% of total aggregate capital commitments to the Funds.
The management team’s incentive compensation is based solely on the performance of the
Managers and the Funds.
Confidential Information Memorandum
56
Section 4.0 – Fund Management
Access to Deal Flow
The Managers comprise a team of professionals with decades of combined experience in the
infrastructure sector. Over the years, management team members have developed valuable relationships
with a wide range of participants in local infrastructure markets including industrial partners, developers,
operators, financial institutions, government entities and regulatory authorities. The Managers believe
these longstanding relationships and partner networks provide the Funds with access to high-quality deal
flow. The Managers believe the Funds will also be uniquely positioned to partner with both North
American and international infrastructure companies seeking equity capital and local market support. In
addition, the ability to leverage existing partner networks cross-border between Canada and the U.S. is
expected to provide for synergies in facilitating deal flow.
North American Focus
Infrastructure investment is inherently local by nature, as geographic familiarity and unique regional and
local knowledge play a critical role in the origination, execution and management of investments. The
Managers are unique in this respect, as team members benefit from years of experience transacting in
the Canadian and U.S. marketplace. Management team members have played key roles in some of the
most significant infrastructure transactions completed in Canada and the U.S. to date.
Selected Transaction Experience
The management team has a proven track record in successfully employing its expertise as an originator,
principal investor and long-term owner of high-quality infrastructure assets. The following illustration
provides a summary of selected transactions, completed in North America, where management team
members have played key roles either as members of Fiera Axium, or while with their former employers.
The illustration below depicts the extent to which members of the management team benefit from a wide
spectrum of experience acting in the capacity of developer, equity sponsor, financial advisor, lender,
operator and asset manager.
Confidential Information Memorandum
57
Section 4.0 – Fund Management
Altalink *
(AB, Canada)
Sault Area Hospital *
(Sault Ste. Marie, ON, Canada)
Durham Courthouse *
(Oshawa, ON, Canada)
McGill University Health Centre *
(Montreal, ON, Canada)
Acquisition of independent owner
and provider of electricity
transmission systems
DBFO of 500,000 square foot
hospital facility
DBFO 440,000 square foot stateof-the-art courthouse facility
DBFOM of a 500 bed hospital and
medical research center
Enterprise Value: C$850 million
Closing: 2002
Role: Controlling equity
shareholder
Enterprise Value: C$400 million
Closing: 2007
Role: Debt arranger, financial
advisor
Enterprise Value: C$250 million
Closing: 2007
Role: Developer, equity sponsor,
financial advisor
Enterprise Value: C$2 billion
Closing: 2010
Role: Debt arranger
Northeast Stoney Trail *
(Calgary, AB, Canada)
St. Isidore Solar PV Facilities
(Ottawa ON, Canada)
Elmsley Solar PV Facilities
(Ottawa ON, Canada)
Montreal Symphony Hall *
(Montreal, QC, Canada)
DBFO of a 21km highway
Groundmount solar PV facilities
with aggregate generation capacity
of 23.4MW
Groundmount solar PV facilities
with aggregate generation capacity
of 23.7MW
DBFO of symphony hall facility
Enterprise Value: C$450 million
Closing: 2007
Role: Debt arranger, financial
advisor
Enterprise Value: C$100 million
Closing: 2012
Role: Equity sponsor, asset
manager
Enterprise Value: C$100 million
Closing: 2012
Role: Equity sponsor, asset
manager
Enterprise Value: C$250 million
Closing: 2009
Role: Developer, equity sponsor,
operator
Anthony Henday Southeast
(Calgary, AB, Canada)
Windsor-Essex Parkway *
(Windsor, ON, Canada)
407 Electronic Toll Road
(Toronto, ON, Canada)
Montreal University Hospital
Research Centre
(Montreal, ON, Canada)
DBFO of a 11km four-and-six lane
divided roadway
DBFOM of a 11km highway
All-electronic, open-access, 108km
highway traversing the Greater
Toronto Area
DBFO of a 68,500 m2 state-of-theart clinical research center
Enterprise Value: C$310 million
Closing: 2010
Role: Equity sponsor, asset
manager
Enterprise Value: C$2 billion
Closing: 2010
Role: Debt arranger
Enterprise Value: C$14 billion
Closing: 2011
Role: Equity sponsor
Enterprise Value: C$585 million
Closing: 2010
Role: Developer, equity sponsor,
asset manager
Autoroute 25 (A-25 toll bridge) *
(Montreal, ON, Canada)
William R. Bennett Bridge *
(Kelowna, B.C., Canada)
DBFO of 7.2km 4-lane highway,
including a 1.2km 6-lane toll
bridge.
DBFO of floating bridge across
Okanagan Lake
Enterprise Value: C$500 million
Closing: 2007
Role: Asset manager
Enterprise Value: C$125 million
Closing: 2005
Role: Developer, equity sponsor,
operator
Vents du Kempt Wind Project
(Montreal, ON, Canada)
Sea-to-Sky Highway
(Vancouver, B.C., Canada)
102.1 MW wind farm to be
operated under a 20-year PPA with
Hydro Quebec
DBFO of roadway connecting
Vancouver and Whistler under a
25-year concession
Enterprise Value: C$350 million
Closing: 2012
Role: Equity sponsor, asset
manager
Enterprise Value: C$600 million
Closing: 2010
Role: Equity sponsor, asset
manager
Canada Line *
(Vancouver, B.C., Canada)
Global Container Terminals *
(New York, NY, USA)
19.5km rail rapid transit line
connecting downtown Vancouver
to the Vancouver Intl. Airport
Acquisition financing of four
leading container terminals
Enterprise Value: C$1.9 billion
Closing: 2005
Role: Developer, equity sponsor,
operator
Enterprise Value: US$2.5 billion
Closing: 2007
Role: Lender
Steamboat Power Plant *
(Minnesota, USA)
Long Beach Courthouse *
(Long Beach California, USA)
DBFOM of a judicial facility under a
35-year concession; first and only
social PPP in the United States
Enterprise Value: US$495 million
Closing: 2010
Role: Financial advisor, debt
arranger
Astoria Power Plant (Phase 1) *
(New York, NY, USA)
Financing for the construction of a
250MW cogeneration facility and a
375MW combined cycle facility
500MW gas fired power plant built
under a long-term contract with
ConEd
Enterprise Value: C$560 million
Closing: 2005
Role: Senior lender
Enterprise Value: US$980 million
Closing: 2004
Role: Developer, equity sponsor
Port of Miami Tunnel *
(Miami, FL, USA)
Aerodom Airport Concession *
(Dominican Republic)
Astoria Power Plant (Phase 2) *
(New York, NY, USA)
DBFOM of a 1.2km bored
underwater tunnel designed to
enhance port roadway access
Refinancing for the expansion and
operation of Santo Domingo’s
international and five other airports
550MW gas fired power plant built
under a long-term contract with
ConEd
Enterprise Value: US$900 million
Closing: 2009
Role: Debt arranger
Enterprise Value: C$200 million
Closing: 2005
Role: Debt arranger
Enterprise Value: US$1.4 billion
Closing: 2009
Role: Developer, equity sponsor
* Certain of the members of the Managers’ respective management teams worked on the foregoing identified transactions prior to joining the Manager,
while employed at different firms. The roles of these team members at the prior firms varied and may have been different from the roles that they serve
with the applicable Manager, and in all cases no member of the management teams of the Managers had full and ultimate authority on the investment
decisions by prior firms related to these transactions. Accordingly, the information presented herein should not be relied upon in making an investment
decision about the Funds. Further information is available upon reasonable request, subject to applicable confidentiality restrictions. Past performance
is not indicative of future results, and there can be no assurance that comparable investments will be made by the Funds or that any of the Fund’s
investment objectives will be achieved.
Confidential Information Memorandum
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Section 4.0 – Fund Management
Fund Management Experience
Fiera Capital provides the Managers with access to an existing and fully operational fund management
platform to support and complement the Managers on an as-needed basis. Certain support functions are
provided by Fiera Capital in areas including, but not limited to, human resources, information technology
management and general administration. These support services are remunerated on a cost recovery
basis.
All direct investment and strategic functions are staffed independently by the Managers. Management
team members of the Managers are responsible for performing fund management functions including, but
not limited to:

sourcing of investment opportunities;

execution of Investments;

operations and asset management;

accounting and reporting;

portfolio administration; and

legal affairs and compliance.
4.4.
Biographies
The following are brief profiles of the key members of the management team of the Managers, the Board
of Directors of the General Partners, and the Investment Committee of the Canadian Fund and the US
Fund.
MANAGEMENT TEAM
Pierre Anctil
President and Chief Executive Officer, Fiera Axium Infrastructure Inc./ Fiera Axium Infrastructure US Inc.
Member of the Board of Directors/ Board of Managers of the General Partners and Managers
Chairman of the Investment Committee of the Canadian Fund and of the US Fund
Pierre Anctil has more than 25 years of experience in principal investing, strategic and executive
management, business development and public service.
As co-founder of Fiera Axium Infrastructure, Pierre was instrumental in raising the firm’s inaugural $460
million Canadian-focused infrastructure fund – Fiera Axium Infrastructure Canada LP. As President and
Chief Executive Officer of the company, and Chairman of the fund’s investment committee, Pierre has
provided strategic leadership and executive oversight on all portfolio investments completed by the firm’s
managed funds.
Pierre began his career in 1984 as a project manager at Pellemon Inc., a consulting engineering firm
specializing primarily in infrastructure where he managed project teams across all aspects of civil and
industrial works including architecture, structural, mechanical and electrical engineering.
Pierre left Pellemon in 1988 to serve as General Manager of the Québec Liberal Party. In 1994, he was
appointed Chief of Staff to the Premier of Québec. From late 1994 to 1996, Pierre served as Chief of Staff
to the leader of the official opposition in Québec’s National Assembly.
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Section 4.0 – Fund Management
In 1996, Pierre returned to Pellemon and served as Executive Vice-President and Member of the Board
of Directors, where he developed a strategic plan for the company that involved a restructuring of its
corporate share ownership and sale to SNC-Lavalin - one of the world's leading engineering and
construction firms (TSX: SNC).
In conjunction with the sale of Pellemon, Pierre joined SNC-Lavalin in 1997 as Senior Vice-President and
General Manager of its Investment Division. In 2001, he was promoted to Executive Vice-President and
Member of the Office of the President where he held corporate responsibility for investments in
infrastructure and public-private partnership projects. Over an 11-year period, Pierre developed
extensive experience bidding, developing, building and overseeing the operations of SNC-Lavalin’s
portfolio of infrastructure companies and concessions, with an estimated equity market value of
approximately $2.5 billion (as at December 2007). Project companies in the portfolio included toll roads,
bridges, airports, power generation and transmission facilities, gas distribution and mass transit
infrastructure. While heading up SNC-Lavalin’s Investment Division, Pierre played a key role on some of
the most significant infrastructure transactions in Canada including the 407 Electronic Toll Road highway
privatization, acquisition of the Altalink transmission asset from Transalta and the Canada Line greenfield
mass transit system project. Pierre left SNC-Lavalin in early 2008 and co-founded Fiera Axium
Infrastructure in late 2008.
As a result of his involvement in numerous successful infrastructure transactions in North America and
abroad, Pierre has developed sector-specific knowledge and expertise across sub-sectors including
regulated assets (electricity transmission and distribution and gas transmission), power generation, toll
roads and airports.
Pierre is currently a member of the Board of Directors of Gaz Métro and Laurentian Bank of Canada
(TSX: LB). He is also Chairman of the Board of the Montréal Heart Institute. Throughout his career,
Pierre has served as a member of various boards of directors, most notably 407 International, where he
served as Chairman of the Executive Committee through to June 2008. From 2002 to 2008, Pierre was
also a member of the board of directors of Altalink, Canada’s first independent owner and provider of
electricity transmission systems and Laurentian Bank of Canada.
Pierre holds a Bachelor of Mechanical Engineering from the École Polytechnique de Montréal (Québec,
Canada), and an MBA from HEC Montréal (Québec, Canada).
Stéphane Mailhot
President and Chief Operating Officer, Fiera Axium Infrastructure Inc./ Fiera Axium Infrastructure US Inc.
Member of the Board of Directors/ Board of Managers of the General Partners and Managers
Member of the Investment Committee of the Canadian Fund and of the US Fund
Stéphane has more than 20 years experience in infrastructure principal investing, corporate and project
finance, asset management and external auditing.
Stéphane joined Fiera Axium Infrastructure in 2009 and currently serves as the firm’s President and Chief
Operating Officer. He has been instrumental in leading the origination, execution, due diligence and
asset management of a number of the portfolio investments completed by the firm’s managed fund. He
currently serves on the board of directors of a number of the fund’s project investments including ITRL
(entity holding indirect interest in 407 International), the Sea-to-Sky Highway Improvement project and the
Anthony Henday Drive Southeast Leg Ring Road.
Stéphane began his career in 1989 as an auditor with Raymond Chabot Martin Paré working on audit
assignments for private, public and semi-public corporations.
In 1993, he joined SNC-Lavalin’s treasury division where he served as a director in the areas of foreign
exchange and treasury planning. He also acted in the capacity of assistant treasurer of both domestic and
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Section 4.0 – Fund Management
international finance, and was involved in the negotiation of corporate credit agreements and played a
key role in a number of business acquisitions completed by SNC-Lavalin.
In 1999, Stéphane was named Vice-President of SNC-Lavalin’s Investment Division, where he was
responsible for the evaluation, negotiation and management of investments in infrastructure and publicprivate partnership projects. Over a 10-year period, he developed extensive experience in analyzing,
bidding, acquiring, structuring, financing, building and overseeing the operations of strategic infrastructure
investments.
As a result of his involvement in numerous successful infrastructure transactions in North America and
abroad, Stéphane has developed sector-specific knowledge and expertise in across sub-sectors including
regulated assets (electricity transmission and distribution and gas transmission), power generation and
public-private partnership projects.
Throughout his career, Stéphane has served as a member of various boards of directors, notably the
boards of Astoria Project Partners and Altalink. In addition, he served as President of Murraylink
Transmission Company Pty Ltd. in Australia, a 50/50 partnership between SNC-Lavalin and HydroQuébec.
Stéphane is a Certified General Accountant and holds a Bachelor of Business Administration, with a
major in Public Accounting from Sherbrooke University (Québec, Canada).
Juan Caceres
Vice President and Senior Investment Director, Fiera Axium Infrastructure Inc./ Fiera Axium Infrastructure
US Inc.
Member of the Board of Directors/ Board of Managers of the General Partners and Managers
Member of the Investment Committee of the Canadian Fund and of the US Fund
Juan has 11 years of experience in infrastructure principal investing, financial advisory and project
finance.
Juan joined Fiera Axium Infrastructure in 2009 and serves as a senior member of the management team
primarily responsible for transaction origination, due diligence and execution. Juan has played a key role
in a number of the portfolio investments completed by the firm’s managed fund. He currently serves on
the board of directors of the fund’s project investments including the CHUM Research Centre project, and
the St. Isidore and Elmsley solar projects.
Juan began his career working as a structural engineer designing large-scale civil infrastructure and
hydroelectric energy projects in South America. Following his employment as an engineer, Juan joined
the World Bank’s team advising the government of Colombia on privatization initiatives. In this role, Juan
was involved in the structuring and tendering processes of several long-term infrastructure asset
concessions.
From 2002 to 2006, Juan was involved in the financing of several international infrastructure and
telecommunication projects as a member of the project finance team at Export Development Canada, and
the corporate finance group at TD Securities Inc. His experience includes debt financings for regulated
utilities, airports, roads and telecom assets in Canada and overseas, notably in Mexico, South America
and the Caribbean.
In 2006, Juan joined CIT Financial’s infrastructure & energy team where he acted as financial advisor on
a number of Canadian PPP and energy projects. He then moved on to join Babcock & Brown’s North
American infrastructure group, where he led the bidding and financing of PPP projects acting in the
capacity of both financial advisor and equity sponsor. As part of his lead role on transactions, Juan was
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responsible for evaluating multiple financing alternatives and capital structures; negotiating key legal and
financial documentation and coordinating with lenders and credit rating agencies.
Juan has extensive experience in advising on, arranging and underwriting a range of financing
instruments in the bank debt and capital markets including project finance, CPI-linked, mezzanine,
subordinated, broadly marketed and private placement debt securities.
Fluent in English, Spanish and French, Juan holds a civil engineering degree from Los Andes University
(Bogota, Colombia) and an MBA from the University of Toronto’s Rotman School of Management
(Ontario, Canada).
Paulo Arencibia
Vice President and Investment Director, Fiera Axium Infrastructure US Inc.
Paulo has 12 years of experience in the areas of financial advisory, asset-based, export and
infrastructure project finance.
Based in the firm’s New York office, Paulo joined Fiera Axium Infrastructure in 2012 and serves as a
senior member of the US management team, primarily responsible for transaction origination, due
diligence and execution.
Paulo began his career in London with Citigroup, where he focused on financial advisory, and debt
structuring and placement in support of the development of several large scale power and water facilities
in Europe and the Middle East. While at Citigroup, Paulo was also involved in structured finance
transactions across several asset classes, including shipping, aviation and industrial equipment.
In 2004, Paulo joined the Energy & Infrastructure Banking team at BNP Paribas in New York, where he
successfully executed multiple greenfield project finance transactions for natural gas-fired and renewable
power assets, as well as oil sands development projects.
Beginning in 2007, Paulo was responsible for the build-out of BNP Paribas’ transportation and PPP
platform in the United States and Canada. Paulo led the bidding and financing of brownfield acquisitions
and greenfield development projects in the road, port and social infrastructure sectors, in numerous
instances acting as both financial advisor and debt arranger/underwriter. In this role, Paulo’s
responsibilities were broad, ranging from development and negotiation of project documents with sellers,
government authorities and key subcontractors, to financial analysis, structuring and capital market
distribution.
Fluent in English and Spanish, Paulo holds a BA in Political Science and Philosophy from Tufts
University, an MA in Development Economics from the Fletcher School (Medford, United States) and an
MBA from Instituto de Empresa (Madrid, Spain), where he was a Fulbright Scholar.
Frédéric Brassard
Vice President - Corporate Development and Legal Affairs, Fiera Axium Infrastructure US Inc.
Frédéric has over a decade of experience in the areas of infrastructure principal investing, legal and
financial advisory in corporate / project finance and merger & acquisition transactions.
Frédéric joined Fiera Axium Infrastructure in 2009 and holds primary responsibility for the firm’s legal
affairs, as well as transaction origination, due diligence and execution. Frédéric has been integrally
involved in all portfolio investments completed by the firm’s managed fund.
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Section 4.0 – Fund Management
Frédéric was previously with the law firm of Stikeman Elliott LLP where he acquired extensive experience
in securities law, corporate finance and corporate governance matters, as well as in advising on public
and private merger & acquisition transactions. Among his engagements, he acted for: public companies
and securities dealers and advisers on various corporate and securities law matters; issuers and
underwriters in connection with public offerings and private placements; and purchasers and vendors on
private and public mergers, acquisitions and divestitures.
In addition to his legal career, Frédéric also served in the Canadian Forces (Naval Reserve) as a Navy
Lieutenant.
Frédéric is a legal, finance and public policy professional, holding a Bachelor of Laws (LL.B.) and a
Bachelor of Civil Law (B.C.L.) awarded with Distinction by the Faculty of Law of McGill University
(Montréal, Québec, Canada), an MBA with specialization in Finance awarded by the London Business
School (London, United Kingdom) and a Master of Public Policy and Administration with specialization in
Political Economy (Gold Medalist) awarded by Concordia University (Montréal, Québec, Canada).
Frédéric is a member of the Bars of the Province of Québec, the State of New York and the
Commonwealth of Massachusetts.
Jocelyn Côté
Vice President - Legal Affairs and Corporate Secretary, Fiera Axium Infrastructure Inc.
Jocelyn Côté joined Fiera Axium Infrastructure in September 2013 and has over 20 years of experience
as legal advisor in the areas of mergers and acquisitions, financing, restructuring and corporate
governance.
Before joining Fiera Axium Infrastructure, Jocelyn was Senior Vice-President, Regulatory and
Government Affairs at Astral Media where he notably led the $3.38 billion acquisition of Astral Media by
Bell Media. Previously, he also was Vice President, Legal Affairs and Secretary of the Mecachrome
Group and of Microcell Telecommunications. Jocelyn began his career at the law firm Stikeman Elliott
LLP, where he practiced tax and corporate law.
Jocelyn holds a law degree (LLB) from Laval University (Québec City, Québec, Canada) and a Masters in
Taxation (LL.M.) from the University of Sherbrooke (Québec, Canada). He is a member of the Quebec
Bar since 1992.
Dominic Chalifoux
Vice President and Senior Asset Operations Director, Fiera Axium Infrastructure Inc./ Fiera Axium
Infrastructure US Inc.
Dominic Chalifoux has 8 years of experience in infrastructure principal investing and asset management,
and over 15 years of experience in project management.
Dominic joined Fiera Axium Infrastructure in 2009 and holds primary responsibility for the firm’s asset
management functions, as well as transaction origination, due diligence and execution. Dominic is deeply
involved in the ongoing operations of all portfolio investments completed by the firm’s managed fund, and
currently serves on the board of directors of the fund’s project investments including the CHUM Research
Centre project, the Sea-to-Sky Highway Improvement project and the Anthony Henday Drive Southeast
Leg Ring Road.
As a mechanical engineer, Dominic began his career working as a project manager for a leading HVAC
manufacturer (Trane) where he managed relationships with large Canadian corporations and delivered
large turn-key projects with related energy savings components.
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Section 4.0 – Fund Management
In 2008, Dominic joined the Macquarie Capital Funds’ asset management group where he was focused
on the transportation sector. Dominic held responsibility for two major Canadian road projects and
worked alongside an operational team establishing best practices aimed at minimizing financial and
operational risk. Dominic was active in the development of comprehensive risk management plans,
identification and recruitment of quality management staff, monthly reporting to lenders and monitoring of
financial performance, preparation of quarterly asset valuations and negotiation of complex modifications
at the asset level.
Dominic joined Macquarie in January 2006 where he worked as a member of Macquarie Capital Finance.
In this capacity, he was involved in the provision of operating leases for technology assets to semi-public
and public corporations.
Dominic is an engineering and finance professional holding an MBA from HEC Montréal (Québec,
Canada) and a bachelor’s degree in mechanical engineering from École Polytechnique de Montréal
(Québec, Canada). He is also a member of the Ordre des ingénieurs du Québec.
Elio Gatto
Vice President, Fiera Axium Infrastructure Inc./ Fiera Axium Infrastructure US Inc.
Elio has 9 years of experience in corporate and finance and infrastructure principal investing and project
finance.
Elio joined Fiera Axium Infrastructure in 2009 as a member of the management team and is primarily
responsible for transaction due diligence and execution. Elio has played an important role in support of a
number of the portfolio investments completed by the firm’s managed fund.
Elio began his career in investment banking with BMO Capital Markets in their mergers & acquisitions and
diversified industries groups where he was responsible for performing financial valuation and analysis on
a variety of transaction types including public takeover bids and defenses, divestitures and leveraged
buyouts. Elio was involved in a range of M&A and corporate advisory assignments in the mining, forestry
and industrial products sectors.
In 2007, Elio joined Babcock & Brown’s North American infrastructure group where he was involved in all
aspects of the development and financing of infrastructure projects in the Canadian infrastructure space.
He was responsible for project valuation and financial modeling, evaluation of multiple debt financing
solutions and capital structures and performing due diligence with specific focus on financial, technical
and legal aspects of investment opportunities.
Elio holds an Honours Bachelor of Business Administration degree from York University’s Schulich
School of Business (Toronto, Canada) where he specialized in finance.
Anick Sivret
Vice President - Finance, Fiera Axium Infrastructure Inc./Fiera Axium Infrastructure US Inc.
Anick has 16 years of experience as a Chartered Accountant, including 12 years working in private
venture capital funds and fund of funds.
Anick joined Fiera Axium Infrastructure in 2010 and holds primary responsibility for the firm’s financial
affairs including all finance and accounting activities for its managed funds.
Anick began her career at Samson Belair Deloitte & Touche in 1997 where she worked in the audit
department. From 1999 to 2005, Anick worked as controller at Innovatech du Grand Montréal where she
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Section 4.0 – Fund Management
acquired valuable knowledge developing strong processes for controlling, monitoring and evaluating
investments and divestments. She participated to the sale of the portfolio by the Government of Québec
to an international investor.
In 2005, Anick joined Multiple Capital as Director of Finance and subsequently as Vice President Finance
to manage a secondary fund of Coller Capital where she gained experience in finance and investment
accounting. She managed legal documentation for investments and divestments and gained an extensive
understanding of international taxation laws and processes.
From 2009 to the end of 2010, Anick assumed the position of Vice President Finance for Teralys Capital,
a major venture capital fund of funds.
Anick holds a Bachelor’s degree in Administration from University of Sherbrooke (Québec, Canada), and
is a Chartered Accountant.
Suzanne Leblanc
Vice President - Engineering and Construction, Fiera Axium Infrastructure Inc./Fiera Axium Infrastructure
US Inc.
Suzanne has over 25 years of experience in the design, construction and project management of
infrastructure projects.
Suzanne joined Fiera Axium Infrastructure in 2011 and holds primary responsibility for the firm’s
engineering and construction oversight functions. Suzanne is deeply involved in the day-to-day
operations of select portfolio investments completed by the firm’s managed fund.
Suzanne spent more than 20 years with SNC-Lavalin working as a senior member in various capacities
within their Hydropower Group. She joined SNC-Lavalin as a design engineer and worked to become
Vice President Operations where she developed the Project Management Team and oversaw the
operations of a 250-employee division in Canada, as well as a design office in India staffed with more
than 100 employees. Suzanne held responsibility for building and leading multidisciplinary teams in
project management for major national and international hydro projects.
As a project manager, Suzanne has extensive experience with EPCM mandates, as well as turnkey
projects where she was accountable for all aspects of execution including planning, specification, design,
commissioning, qualification and contractor selection, as well as construction management and health
and safety performance.
Suzanne holds a Bachelor of Engineering (B. Eng) in Mechanical Engineering from École Polytechnique
de Montréal (Québec, Canada).
Jean-François Poisson
Vice President –Asset Management, Fiera Axium Infrastructure Inc.
Jean-François has over 20 years of experience in the management of multidisciplinary teams and largescale logistics.
Jean-François joined Fiera Axium Infrastructure in 2012 and holds primary responsibility for the delivery
of the Montréal University Hospital Research Center Project on behalf of the project company. He is
deeply involved in the day-to-day construction and operation activities of select portfolio investments
completed by the firm’s managed funds.
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Section 4.0 – Fund Management
Jean-François spent more than 15 years with Bell Canada working in senior engineering positions mainly
in respect of the firm’s real estate operations, where he managed logistics, contractual performance and
outsourcing.
Jean-François holds a Bachelor of Engineering (B. Eng) in Civil Engineering from École Polytechnique de
Montréal (Québec, Canada).
BOARD OF DIRECTORS
Members of the Board of Directors or Board of Managers of the General Partners include Jean-Guy
Desjardins, Maxime-Jean Gérin, Sylvain Brosseau, Lise Pistono, Pierre Anctil and Stéphane Mailhot.
The following are brief profiles of the members of the Board of Directors of the General Partners.
Jean-Guy Desjardins
Chairman of the Board of Directors of the General Partners
Member of the Investment Committee of the Canadian Fund and of the US Fund
Jean-Guy Desjardins, Chairman of the Board, Chief Executive Officer and Chief Investment Officer of
Fiera Capital Corporation, began his career at Sun Life Insurance Company as an Analyst and Portfolio
Manager. In 1972, Mr. Desjardins co-founded TAL Global Asset Management, and was its principal
shareholder until its purchase by a financial institution. Mr. Desjardins then acquired, in 2003, a portion of
the assets under management and professionals of Elantis Investment Management, to create Fiera
Capital. The firm continued its expansion with the acquisition of Senecal Investment Counsel in 2005,
YMG Capital Management in 2006, Sceptre Investment Counsel in 2010, and Natcan Investment
Management, a subsidiary of the National Bank of Canada, in 2012. Fiera Capital Corporation is an
independent, publicly-listed investment management firm, and one of Canada’s leading investment
managers.
Mr. Desjardins is currently a member of the Board of Directors of the Société de services financiers Fonds
FMOQ Inc., HEC Montréal, DJM Capital Inc., Centria Inc., Fiera Axium Infrastructure Inc., where he is
also a member of the Investment Committee, and he serves as Chairman of Board of Fiera Properties
Limited. He served as a member of the Board of Directors of the Bank of Canada for five years, and was
elected lead director in 2007.
Mr. Desjardins is a member of the Council of Governors of Centraide of Greater Montréal, a member of
the Investment Committee of the Canadian Centre for Architecture, and a member of the Executive
Committee and of the Board of Directors of Orchestre Symphonique de Montréal.
Mr. Desjardins graduated from Collège Mont-Saint-Louis in 1966 with a Bachelor of Arts degree. In 1969,
he earned his Master degree in commerce (Finance) from HEC Montréal. Mr. Desjardins is also a CFA
Charterholder.
Maxime-Jean Gérin
Vice Chairman of the Board of Directors of the General Partners
Maxime is a senior investment professional with 20 years of experience developing strategic investment
policies and managing global macro strategies for large institutional, high-net worth and mutual fund
clients.
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Section 4.0 – Fund Management
Maxime began his career in 1989 with TAL Global Asset Management as a fixed income Portfolio
Manager. In 1994, he served as Vice President of Currency Management where he developed currency
strategies for a $5 billion portfolio. In 2001, he was named Chairman of Global Asset Allocation,
responsible for managing the firm’s $22 billion portfolio. From 2003 to 2006, he served as Vice President
of Global Asset Allocation and Currency Management for Fiera Capital where he managed asset
allocation strategies for a $3.5 billion portfolio.
Maxime is a CFA charterholder and holds an MBA from INSEAD.
Sylvain Brosseau
Member of the Board of Directors of the General Partners
Sylvain Brosseau is a senior executive professional with more than 20 years of experience in the financial
services industry.
From 1992 to 1999, Sylvain held a number of management positions at Talvest Mutual Funds, leading to
his role as Vice President, Marketing and Operations. In 1999, he assumed the position of Executive Vice
President at TAL International, where he oversaw the strategic and business development of the
company’s operations in Canada, Europe, Asia, and the Caribbean. In 2001, he became Executive Vice
President of TAL Global Asset Management, heading the firm’s worldwide distribution team.
Since its foundation in 2003, Sylvain has served as President and Chief Operating Officer of Fiera Capital
Inc., instrumental in the company’s growth as one of Canada’s leading independent investment firms.
Sylvain is a member of the Board of Directors of Fiera Capital Corporation, Centria Inc. and Equisoft Inc.,
in addition to volunteering with Centraide of Greater Montréal.
Sylvain holds a Master of Sciences degree from McGill University (Montréal, Québec, Canada) and a
Bachelor of Sciences degree from the University of Vermont (United States).
Lise Pistono
Member of the Board of Directors of the General Partners
Lise Pistono has more than 35 years of experience in financial and management accounting. Lise began
her career in the academic sector teaching at HEC Montréal, Université de Montréal (Québec, Canada).
Over a period of 20 years, Lise worked as a Faculty member in education departments including Applied
Economics, Quantitative Methods and Accounting.
From 1990 to 1997, Lise held internal audit positions with Montréal Trust and Bell Canada. Between 1998
and 2004, she served as a Senior Finance Officer for a subsidiary of Bell Canada. Lise moved on to join
KPMG’s consulting group in 2004, working as a member of their Governance & Enterprise Risk
Management Team.
In 2007, Lise joined DJM Capital as Vice President and Chief Financial Officer. DJM Capital holds an
ownership interest in Fiera Capital. Lise serves as a member of the boards of directors of Centria Capital
Management and Centria Commerce, and serves on the Board of the General Partners of Centria Capital
Funds LP.
Lise is a Chartered Accountant and holds a Master’s degree in both Accountancy and Commerce (major
in Econometrics) from HEC Montréal, Université de Montréal (Québec, Canada).
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Section 4.0 – Fund Management
INVESTMENT COMMITTEE
Members of the Investment Committee of the Canadian Fund and the US Fund include Pierre Anctil,
Stéphane Mailhot, Juan Caceres, Jean-Guy Desjardins, James R. Gillis and Graham Wilson. The
following are brief profiles of the independent members of each Investment Committee.
James R. Gillis
External Investment Committee Member of the Canadian Fund and of the US Fund
James has significant executive-level experience across both the private and public Canadian
infrastructure sectors.
James benefits from a wealth of investment banking experience, having previously served as Vice
Chairman of Desjardins Securities where he was responsible for the Corporate Finance and Institutional
Equity divisions of the firm. He also served as a Vice President & Director in the Investment Banking
division of TD Securities where he oversaw the firm’s Power & Utilities practice in Canada. Between
1998 and 2004, he assisted in raising over $10 billion in capital for energy companies and advised on
over 100 regulated electricity transactions.
Between 2004 and 2006, James served as the Ontario Deputy Minister of Energy where he was
responsible for energy sector restructurings that resulted in new private sector generation investment in
excess of $10 billion.
James serves as Chairman of Temporal Power, and was previously a board member of Ontario Electricity
Financial Corporation and Ontario Power Authority.
James holds an Honours BA and an MBA from the University of Toronto (Ontario, Canada).
Graham Wilson
External Investment Committee Member of the Canadian Fund and of the US Fund
Graham has over 25 years of experience in the infrastructure and energy sectors.
Graham previously served as Executive Vice President and CFO of Westcoast Energy where he oversaw
activities that resulted in the company growing from total assets of $1.6 billion to $16 billion and as
President and CEO of the Energy Services Division. He played a key role in the acquisitions of Union
Gas and ICG, as well as the firm’s business combination with Duke Energy.
Prior to joining Westcoast Energy, Graham worked for PetroCanada Inc. as Vice President Finance and
Administration where he was responsible for the firm’s treasury, tax, risk management and internal audit
processes.
Graham currently serves on the board of directors of BC Ferries Services, Itron Inc, Hardwoods Income
Trust and Naikun Wind Energy Group Inc. His previous directorships include Calpine Power Income
Fund, Cellfor Inc, Sequoia Oil and Gas Ltd, Lightning Energy Ltd, Inflazyme Pharmaceuticals Limited and
Daylight Energy Ltd.
Graham holds a Bachelor of Sciences degree (B.Sc.) from McGill University (Montréal, Québec, Canada)
and an MBA from the University of Western Ontario (London, Ontario, Canada).
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5. Investment Strategy and Process
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Section 5.0 – Investment Strategy and Process
Section 5.0 – Investment Strategy and Process
5.1.
Investment Strategy
The objective of the Funds is to achieve favourable risk-adjusted returns over the long-term by investing
in core infrastructure assets that are expected to deliver predictable and stable cash flows. Consistent
with this objective, the Managers will seek to assemble a diversified portfolio of infrastructure assets
through employing an investment strategy that entails a disciplined investment approach and well-defined
investment process.
Investment Approach
Clearly Defined Asset Characteristics
Targeting both operating assets and late-stage greenfield investment opportunities, the Funds will seek to
invest in core energy, transportation and social infrastructure assets in Canada and the U.S. Focus is
placed on assets that are supported by robust market demand, under long-term contract with creditworthy
counterparties, within concession-based structures or under a regulated framework. These types of
assets tend to have limited exposure to market risk, and generally demonstrate the following
characteristics:

Deliver services that are essential in nature (i.e. the need or demand for the asset is unquestionable)
to local communities or national populations;

Generate revenues that are often underpinned by long-term contracts within concession-based or
regulated frameworks;

Exhibit cash flow profiles that are relatively stable and predictable in nature;

Enjoy monopolistic positions with high barriers to entry;

Operate under long-term concessions, typically in excess of 20 years; and

Contractually transfer construction and operational risk to creditworthy third parties having relevant
expertise.
Mid-Market Focus
The Managers will typically seek for the Funds to invest in medium-sized assets, although investment in
larger assets may be made. The Managers believe that they enjoy a competitive advantage in this
respect, as most other infrastructure funds with which the Funds compete, typically target larger
investments in order to more efficiently deploy large sums of capital. The Managers believe that focusing
on mid-market assets provides for a larger pool of potential investment opportunities that are subject to
less competitive pressure. The Managers also believe that focusing on mid-market investments increases
the likelihood of entering into exclusive arrangements with sellers, potentially under more favourable
acquisition prices and investment terms. In addition, the Managers are of the view that they are better
positioned to add value to investments of this size through leveraging their unique technical, operational
and asset management expertise.
Investment Parameters
In order to maintain a diversified portfolio and mitigate risks associated with geography, sub-sectors,
development stage and project concentration, the Funds seek make investments within the parameters
outlined below.
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Section 5.0 – Investment Strategy and Process
Geographic Location
The North American Fund will invest exclusively in the Canadian Fund and US Fund (directly or indirectly)
and will invest no more than 30% of the total aggregate net asset value of the limited partnership units of
the Canadian Fund and the US Fund held by it at the time of such investment (directly or indirectly) in
limited partnership units of the US Fund. The Canadian Fund will exclusively target investments in
Canadian infrastructure assets, and the US Fund will exclusively target investments in U.S. infrastructure
assets. No more than 60% of total aggregate capital commitments to the Canadian Fund will be invested
in assets located in a single province in Canada. The Managers believe that the supply of high-quality
investment opportunities and the competitive environment in the Canadian and U.S. market, provides for
an attractive investment landscape.
Sub-sector Mix
The Canadian and US Funds seek to invest in essential infrastructure assets in the energy, transportation
and social infrastructure sub-sectors. They will aim to have balanced exposure to each sub-sector and
avoid concentration of total capital commitments towards any one particular sub-sector. They do not
intend to make investments in non-environmentally friendly assets (e.g. coal power plants), or assets
having significant technological risk elements.
The following provides the parameters under which investments are expected to be made into each
respective sub-sector:
Energy Infrastructure
• Energy assets including:
– power generation with a focus
on green power
– power transmission and
distribution
– pipelines and gas collection
and distribution systems
• Assets operating under a regulated
framework, backed by long term offtake agreements with creditworthy
counterparties or enjoying market
positions providing pricing power.
Transportation Infrastructure
• Transportation assets including:
Social Infrastructure
• Social assets including:
– roads
– hospitals
– bridges
– schools
– ports
– courthouses
– airports
– institutional buildings
– mass transit systems
• Assets generating revenues from tolls,
projects with contractually guaranteed
revenues in the form of shadow tolls
or availability payments under PublicPrivate Partnership (PPP) structures.
• Social infrastructure projects will
typically be undertaken through
Public-Private Partnership (PPP)
structures.
Stage of Development
The Canadian and US Funds seek to invest in a mix of operational and late-stage greenfield
infrastructure assets. At any given time, no more than 40% of total capital commitments will be invested
in greenfield assets. Greenfield assets include projects that do not generate free cash flow to equity at
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Section 5.0 – Investment Strategy and Process
the time the investment is completed, and require significant design, construction and financing activities.
These types of assets cease to be considered greenfield portfolio investments once they are
commissioned, become operational and generate free cash flow to equity.
Greenfield Assets:
The Canadian and US Funds will invest only in late-stage greenfield projects (notably projects procured
under concession-based frameworks) and will not make investments in early-stage development projects
that entail significant risk and/or excessive development costs.
Although greenfield assets may not provide immediate cash yield at the time of acquisition, participation
in these investments at their late-stage of development provides potential to generate superior returns on
a risk-adjusted basis. As infrastructure assets progress from their development to mature stage and
operational risks are managed, cash flows become more predictable and perceptions of risk decrease.
The resulting decrease in equity risk premium can increase the implied equity value of assets. The
Managers believe that the fact that infrastructure assets exhibit risk profiles that evolve through their
development stages (i.e. construction stage through operations stage) provides opportunity to arrange
and modify their capital structure accordingly. For instance, a mature asset in its operations stage may be
able to support greater amounts of leverage relative to an asset in its early stages of construction. The
Managers believe this can be achieved within an acceptable risk tolerance level through appropriate
structuring and proper risk allocation and mitigation.
The Canadian and US Funds seek to ensure that appropriate risk management measures are
implemented with respect to all investments in greenfield projects. All design, construction and operations
activities will be carefully outsourced to highly-qualified, creditworthy partners exhibiting proven track
records of success. Partners will be selected based on their experience pertaining to the specific asset
class or project being evaluated. Construction risk will be substantially mitigated through appropriate
contractual arrangements that typically include pass-through of key obligations to contractors under fixedprice and date-certain contracts. Under these arrangements, contractors will generally provide robust
construction credit support packages in the form of performance bonds, guarantees, letters of credit, etc.
under this framework; contractors also assume responsibility for cost overruns and schedule delays.
Operating Assets:
Operating infrastructure assets are established businesses that tend to be operationally mature with a
demonstrated history of past performance. These assets exhibit predictable cash flow patterns and, upon
acquisition, are expected to provide the Canadian and US Funds with steady income flow.
The Managers expect the volume of opportunities to acquire operating assets to remain robust over the
near to mid term. De-regulation in certain sub-sectors, as well as public policy changes, is expected to
continue to give way to a number of investment opportunities. For example, tax policy changes
implemented by the Canadian government regarding the tax treatment of income trusts have altered the
relative valuation of some assets by certain investors. Declining public market valuations for some assets
has given rise to a number of take-private transactions. Moreover, market restructurings have led some
capital constrained companies to divest non-essential assets in order to focus on their core activities and /
or free up capital to develop new projects. Finally, the global dislocation of capital markets experienced in
recent years is expected to continue to generate a growing number of investment opportunities in
operating assets currently held by industry participants facing financing hardship or liquidity issues. The
Managers will aim to capitalize on investment opportunities that may arise from these situations, provided
that they are consistent with the overall investment strategy of the Canadian and US Funds.
Investment Structure
The Canadian and US Funds will seek to invest in equity and quasi-equity, preferred shares and
convertible and subordinated debt in infrastructure assets. Preferred investment positions in assets will
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Section 5.0 – Investment Strategy and Process
range from 20% to 50%, thereby achieving strong influence or joint control over investments. The
Canadian and US Funds may take majority or larger equity positions (up to 100% of the equity) in certain
assets. The Canadian and US Funds will typically invest alongside reputable participants in the
infrastructure sector, which may include other equity sponsors and/or industrial and strategic partners.
The Managers expect that individual equity investments in assets will range in size from $20 million to
$75 million, and investments will typically be held through limited liability, tax flow-through (where
possible), sole-purpose vehicles. No more than the greater of (i) 20% of total capital commitments or (ii)
$75 million will be invested in a single asset. The Funds will not invest in infrastructure assets whose
shares or other equity ownership interests are publicly traded at the time the investment is contemplated
to be made, except if such equity ownership interests or shares will cease to be publicly traded as a result
of such investment. Furthermore, the Canadian and US Funds will not invest in senior debt securities.
The Canadian and US Funds seek influential minority positions or selective majority positions in assets
that enable strong governance rights over strategic, financial and operational matters. The Managers will
seek to obtain appropriate minority stakeholder protections, as well as board representation where
appropriate.
5.2.
Investment Process
The Managers have developed a well-defined process for identifying, selecting, analyzing, executing, and
managing investments. The investment process is aimed at ensuring that all investment decisions are
completed in compliance with the overall investment strategy of the Funds. The investment process may
vary in its application to specific investments and may be modified from time to time. The investment
decision process is based on a framework depicted by the adjacent illustration and described in further
detail below.
Transaction Sourcing
The Managers comprise a team of professionals with decades of combined experience in the
infrastructure sector. Over the years, management team members have developed valuable relationships
with a wide range of participants in local infrastructure markets including industrial partners, developers,
operators, financial institutions, government entities and regulatory authorities. The Managers believe that
these longstanding relationships and partner networks provide the Canadian and US Funds with
privileged access to high-quality deal flow. The Managers further believe that the Canadian and US
Funds are uniquely positioned to partner with both North American and international infrastructure
companies seeking equity capital and local market support. In addition, the ability to leverage existing
partner networks cross-border between Canada and the U.S. may provide for synergies in facilitating deal
flow.
Investment opportunities will primarily be sourced
through the following channels:
 existing partner networks;
 relationships with industry participants;
 financial institutions and advisors;
 formal sale processes initiated by sellers; and
 government initiated processes.
Although the Managers expect to have access to a
robust pipeline of deal flow, they will prioritize and
focus their efforts on those opportunities that are
believed to provide the potential for superior riskadjusted returns and less competitive bidding
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environments. The Funds will not be compelled to pursue all opportunities that arise; rather specific
emphasis is placed on sourcing high-quality investments. A disciplined approach is employed with
respect to auctions and formal tender processes, whereby the Funds selectively participate in situations
where a distinct competitive or strategic advantage exists. The Managers seek to avoid engaging in
processes that involve overly aggressive bidding environments.
Transaction Selection
Subsequent to the identification of a sourced opportunity, the applicable Manager will conduct a
preliminary transaction review to determine whether or not the investment should be pursued further. A
critical first step in this process involves thoroughly assessing the strategic fit of an investment opportunity
in the relevant Fund’s portfolio. The applicable Manager will place specific emphasis on evaluating the
interests and objectives of all parties involved, with an aim to ensure that a strong alignment of interest
exists between potential partners, eventual contractual parties, management teams and any other
relevant stakeholders who may be involved.
The transaction selection process will specifically take into consideration the following:
 nature of the competitive landscape and market environment, including the existence and features of
any regulated framework or contractual arrangement with a creditworthy counterparty;
 relevant technical, commercial and legal matters;
 quality and duration of underlying cash flow profile;
 risk/return profile including preliminary analysis of potential returns (IRRs);
 preliminary assessment of potential capital structure and impact on investment returns;
 probability of success and estimated magnitude of development / pursuit costs; and
 ability to implement operational improvements and enhance asset value.
At this stage, the management team will ensure that the sourced opportunity meets the overall investment
strategy of the relevant Fund and is consistent with established policies and investment parameters.
The Managers will aim to limit pursuit costs and undue reliance on third party advisors through efficiently
leveraging internal management team resources, and working with experienced advisors and partners
that facilitates economies of scale.
Approach to Responsible Investing:
As a matter of policy, the Canadian and US Funds will only invest in projects whose management
demonstrates a principle of strong and healthy labour relations with their employees and labour unions to
the extent that employees are unionized. Investment will not be made in assets that are considered not
to have favourable relations with employee groups, or which do not support fair wage and employment
practices. Specifically with respect to greenfield projects, the Canadian and US Funds will only invest in
projects where the Managers expect that the management thereof will not purposely or actively exclude
or reduce the number of unionized employees. Furthermore, Fiera Axium is committed to ensuring
workplace safety on all its projects, and particular focus and attention is placed on health and safety
initiatives in greenfield projects under construction.
The Principles of Responsible Investment (“PRI”) published by the Secretariat of the Principles for
Responsible Investment Initiative will be used by the Canadian and US Funds, for guidance purposes, in
complying with the policies outlined above in relation to infrastructure asset investment and management.
Institutional investors have a duty to act in the long-term interests of their beneficiaries. Environmental,
social, and corporate governance issues have an impact on the performance of investment portfolios.
Through the application of PRI, the Managers will seek to ensure that Limited Partners’ interests are
aligned with the broader objectives of society.
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Section 5.0 – Investment Strategy and Process
Due Diligence
If it is determined at the end of the transaction selection stage that an investment opportunity is deemed
to be of interest to the Funds, the relevant Manager will conduct a systematic due diligence process
based on the following:

detailed risk assessment including thorough commercial, technical, legal and financial review;

thorough evaluation of management teams;

comprehensive financial analysis and capital structure optimization; and

determination of investment terms and pricing.
When evaluating investment opportunities, the relevant Manager will seek to assess all risks which are
deemed to be of material importance. From a commercial standpoint, the relevant Manager will conduct
an in-depth evaluation of the competitive landscape and market environment that investment
opportunities are subject to. This entails assessing the nature and structure of regulatory frameworks, as
well as characteristics of contractual arrangements with counterparties. The relevant Manager will
undertake market demand studies and evaluate forecasts in the case of assets where revenues are
subject to volume and/or market risk (e.g. a toll road). Similarly, the relevant Manager will evaluate
supply-side elements of investment opportunities. For instance, wind and hydrological studies will be
relied upon when evaluating assets in the renewable energy space. The relevant Manager will also
consider relevant technical aspects of investment opportunities including development, operational and
regulatory elements. The relevant Manager will ensure that contractual arrangements with partners,
constructors, operators and public authorities are properly structured, and that material risks are mitigated
to the greatest extent possible. With respect to legal matters, the relevant Manager will ensure the
robustness of transaction structures taking into account risk allocation, permitting and licensing issues (if
applicable), sovereign risk and all other relevant risk factors. Depending on the complexity of the due
diligence process and risk factors being assessed, the relevant Manager may engage third-party advisors
and consultants to supplement their own evaluation. These advisors may include, but will not be limited
to, financial, accounting, insurance, legal, technical, environmental and operational experts who will
provide independent advice and verification on key aspects of an investment.
This stage of the investment process also involves a thorough evaluation of the management teams that
are in place for a given investment opportunity, particularly in the case of mature operating assets. The
relevant Manager will seek to ensure that existing management team members have the requisite skills
and experience to manage day-to-day operations, achieve performance expectations and aptly execute
on established business plans. In addition, the relevant Manager will also evaluate the potential to
supplement existing management resources with their own technical, financial and operational expertise
where applicable.
Detailed financial analysis also forms an important element of the due diligence process related to all
investment opportunities. Financial analysis conducted for all potential investments will involve detailed
financial modeling. A comprehensive financial model will be developed based on a series of underlying
cash flow forecasts including key revenue and cost drivers. Sensitivities will be performed on key
business plan assumptions in order to assess the volatility of cash flows and performance of the
investment under various operating scenarios. Specific emphasis will be placed on evaluating the
financial resilience of assets under certain stress scenarios, and the resulting impact on expected returns.
Financial models will incorporate a discounted cash flow analysis that will serve as the primary means of
assessing value and projecting returns. The analytical process will also take into consideration relevant
valuation multiples and comparable precedent transactions.
Based on the due diligence performed during this stage, the relevant Manager will seek to arrive at an
assessed valuation range for the investment which will form the basis upon which to negotiate the terms
and conditions of a potential transaction. The relevant Manager will engage in bilateral negotiations with
the ultimate goal of resolving all material issues that may have the potential to arise during the final
execution and investment stages of the process. Individual interests will be taken into consideration, so
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Section 5.0 – Investment Strategy and Process
as to arrive at agreements that are satisfactory to all parties, including partners, counterparties, public
bodies, regulators, etc.
Execution and Investment
Once the relevant Manager has completed its due diligence process, a formal investment memorandum
summarizing the outcome and results will be prepared for submission to an investment committee. This
comprehensive document will provide the relevant investment committee members with a summary of all
key aspects of the investment, including a detailed description of the asset, market dynamics, investment
size, anticipated capital structure, risk analysis, technical analysis, financial valuation and sensitivity
analysis and operational review. The memorandum will identify expected investment returns under a base
case scenario, as well as reasonable upside and downside cases. The investment committee will be
called to approve investment proposals based on the merits of the information contained in the
memorandum, as well as any other relevant analysis or due diligence material presented to them by the
management team.
The management team will work to negotiate final terms and conditions of the transaction and finalize all
legal documentation accordingly for execution by the relevant General Partner in its capacity as general
partner of the relevant Fund.
Asset Management
Fiera Axium employs an active asset management approach centered on the implementation of business
plans consistent with original investment cases, best practices and operational improvement. Postinvestment monitoring forms a critical component of the asset management process, and distinguishes
the Managers from many others in the sector. Each of the Managers will, on behalf of the General Partner
of the Canadian Fund or the US Fund that will have made an investment in a project, function as an
active investor participating in all major decisions of investment oversight, and will work to undertake
activities that optimize value for the relevant Fund. While the Funds will not systematically seek a majority
controlling interest in respect of all of their investments, significant influence on the board of such
investments is considered to be critical, particularly regarding issues relating to strategy, management,
capital spending and finance. Where possible, the relevant Manager will appoint its employees to the
boards of portfolio assets, to monitor performance and support implementation of strategic and
operational improvements.
Fiera Axium’s active asset management approach seeks to optimize value creation for its managed
Funds. Post-investment activities with the goal of achieving operational, strategic and financial
enhancements at the asset level include, but are not limited to:
 ensuring that best practices are implemented and operational improvements are carried out;
 ensuring appropriate management incentive plans;
 implementing efficient financial controls and rigorous budgeting regimes;
 executing asset expansions and/or follow-on acquisitions, where applicable; and
 periodic review of capital structure optimization opportunities.
The Managers benefit from an in-house team of asset management professionals dedicated to ensuring
that the interests of the Funds will be preserved throughout the life of investments. Where appropriate,
employees of the Managers may also be appointed to the management team of a portfolio investment.
Cash Flow Harvesting
The Funds are established as open-ended investment vehicles having an indefinite term. As such, the
Funds employ a long-term investment strategy that is inherently aligned with the long-term nature and
investment horizon of infrastructure investments. Assets are sought to be held over the long term, with
no requirement to divest, thereby allowing the Funds to seek to generate perpetual cash distributions and
benefit from enhanced diversification over time as assets are added to the portfolio. Although no
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Section 5.0 – Investment Strategy and Process
definitive requirement or timeframe exists to divest portfolio investments, the Canadian Fund and the US
Fund may seek to create liquidity and maximize targeted returns to Limited Partners through selectively
and opportunistically exiting certain investments to the extent that prevailing market conditions and other
factors permit. Exit opportunities for investments could take the form of strategic sales, sale to financial
investors, or public offerings.
During the transaction selection stage, the relevant Manager may, if appropriate, evaluate potential exit
opportunities available to the relevant Fund. During the execution and investment stage, the relevant
Manager will aim to structure investments so as to facilitate exit opportunities to the extent that the Fund
seeks to divest portfolio investments in the future. In all cases, this will be carried out with the goal of
maximizing returns to Limited Partners.
In all instances where a Fund seeks to divest a Portfolio Investment, the investment committee of that
Fund will be formally presented with the rationale for the sale. Analysis will be conducted summarizing the
return impact of a liquidity event, relative to potential return expectations if the investment were to remain
in the portfolio. All divestment decisions will require the approval of the investment committee of the
relevant Fund
.
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6. Summary of Principal Terms
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Section 6.0 – Summary of Principal Terms
Section 6.0 – Summary of Principal Terms
The following information is presented as a summary of each of the Funds’ principal terms only and is
intended solely for reference. It is not intended to be complete and is qualified in its entirety by reference
to this Memorandum, to the Limited Partnership Agreement of each of the North American Fund, the
Canadian Fund and the US Fund (each, as amended and restated from time to time).
6.1
Fiera Axium Infrastructure North America Limited Partnership
The Fund

Fiera Axium Infrastructure North America Limited Partnership (the “North
American Fund”, or in this table, the “Fund”), a limited partnership
established under the laws of the Province of Québec, Canada.
Fund Structure

Open-ended limited partnership established as a “feeder” fund to invest all of
its capital, either directly or through one or more holding vehicles, in two
separate country funds: one established for purposes of investments in
Canada (“Fiera Axium Infrastructure Canada II Limited Partnership” or the
“Canadian Fund”), and one established for purposes of investments in the
United States (“Fiera Axium Infrastructure US LP” or the “US Fund”)
through capital commitments to said Fund (each a “Capital Commitment”).
General Partner

Fiera Axium Infrastructure North America Partner Inc. (the “North American
General Partner”), a corporation incorporated under the Canada Business
Corporations Act, and a wholly-owned subsidiary of Fiera Axium Infrastructure
Inc., acts as the general partner of the North American Fund.

The North American General Partner (acting directly or through its duly
appointed agents (including the Canadian Manager, as herein defined)) will,
in such capacity, be vested with full, exclusive and complete right, power and
discretion to operate and conduct the affairs of the North American Fund.

The North American General Partner will have unlimited liability for the debts,
liabilities and obligations of the North American Fund, in accordance with
applicable law.

Pursuant to the terms of a Management Services Agreement, the North
American General Partner has delegated to the Canadian Manager
substantially all of its management and administrative services, and in
connection with such delegation, the Canadian Manager is entitled to bind the
North American Fund as attorney-in-fact for the North American Fund and the
North American General Partner.
Manager

Fiera Axium Infrastructure Inc. (the “Canadian Manager”), a corporation
incorporated under the Canada Business Corporations Act and jointly
controlled by Fiera Capital Corporation and Axium Infrastructure Management
Inc., or any of its wholly-owned affiliates, provides day-to-day management
services to the North American Fund and, in such capacity, will act as agent
for the North American General Partner.
Fund Objective

The North American Fund’s objective is to generate attractive risk-adjusted
returns from Infrastructure Assets (as herein defined) located in Canada or
the U.S. (“Portfolio Investments”), through investments in the Canadian and
the US Fund, either directly or through one or more holding vehicles.

The North American Fund will target an internal rate of return (“IRR”) to
Limited Partners (as herein defined) of 9% to 12%, after payment of all
management fees, commitment fees, incentive fees and fund expenses.
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Section 6.0 – Summary of Principal Terms
There is no assurance that this target range of IRR will be achieved and
actual returns to Limited Partners may be materially different than
targeted range of returns.

The North American Fund will ultimately invest only in LP Units of the
Canadian Fund and of the US Fund, either directly or through equity, quasiequity, convertible and subordinated debt and equity-related investments in
holding entities. The Canadian Manager will cause the North American Fund
to invest a portion of total Capital Commitments not greater than 30% of the
aggregate NAV of all securities held by the North American Fund in LP Units
of the US Fund at the time an investment is made. There will not be any
rebalancing of the interests of the North American Fund in the Canadian Fund
and the US Fund if different rates of return of the Canadian Fund Portfolio
Investments and the US Fund Portfolio Investments cause the aggregate
NAV of the Portfolio Investments of the US Fund to represent at any particular
time more than 30% of the aggregate NAV of securities held by the North
American Fund.

Any change to the investment policy of the North American Fund will require
the unanimous consent of all Limited Partners.
Manager
Commitment

The Canadian Manager will, for each Vintage, commit to invest in the capital
of the Canadian Fund and the US Fund, directly or through an affiliate, an
amount such that it shall have at all times (with its affiliates) aggregate to the
Funds (in the aggregate) equal to at least 1% of the total aggregate Capital
Commitments made by all Limited Partners to the Funds (the “Manager
Commitment”), in the aggregate.
Fund Term

The North American Fund will have an indefinite term (the “Term”) and will be
authorized to accept additional Capital Commitments indefinitely (subject to
the rights of the Limited Partners set forth under the heading “Reduced
Term” below).

Upon having reached a threshold of C$1,000,000,000 of aggregate Capital
Commitments, the Fund shall require the adoption of a Majority Resolution
(as hereinafter defined) to accept further Capital Commitments and upon
having reached a threshold of C$1,500,000,000 of aggregate Capital
Commitments, the Fund shall require the adoption of a Special Resolution (as
hereinafter defined) to accept further Capital Commitments.

Notwithstanding the foregoing, the Limited Partners of the North American
th
Fund, may after the fifth (5 ) anniversary date of the initial closing:
a. by a resolution passed by at least two (2) holders of LP Units of the
North American Fund holding at least sixty-six and two-thirds percent
(66⅔%) of all outstanding LP Units (“Special Resolution”), cause the
North American Fund to cease to accept new Capital Commitments
and, in such case, (1) the North American General Partner will
thereafter cease to accept new Capital Commitments and (2) the
Limited Partners of the North American Fund will be deemed to have
waived any right to any investment opportunities presented to the
North American Fund subsequent to the date of such Special
Resolution and in connection with any follow-on investments on
existing Portfolio Investments; and
b. by a resolution passed by at least two (2) holders of LP Units of the
North American Fund holding at least seventy-five percent (75%) of
all outstanding LP Units (“Extraordinary Resolution”), to fix an end
Investment
Policy
Reduced Term
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Section 6.0 – Summary of Principal Terms
date to the Term of the North American Fund. Further to such
Extraordinary Resolution having been passed, the end date of the
Term of the North American Fund will be a date set forth in such
rd
resolution, but no sooner than the third (3 ) anniversary date of the
date on which the resolution shall have been passed. At the expiry of
such Term, the North American General Partner will have the option,
in its discretion, to extend the Term of the North American Fund for
two additional periods of one (1) year, in its absolute discretion and,
with the approval by a resolution approved by more than 50% of the
votes cast by at least two (2) holders of LP Units of the North
American Fund (“Majority Resolution”), for a further period of one
(1) year; provided that, in such case, (1) the North American General
Partner will thereafter cease to accept Redemption Requests and
shall have no obligation to honour any prior Redemption Requests
and (2) the Limited Partners of the North American Fund will be
deemed to have waived any right to any investment opportunities
presented to the North American Fund subsequent to the date of such
Special Resolution and in connection with any follow-on investments
in existing Portfolio Investments.

The holders of LP Units in the North American Fund may, by Special
Resolution, elect to terminate the right of the North American General Partner
to complete additional investments.
Acceptance of
Capital
Commitments

The North American General Partner generally intends to accept Capital
Commitments to the North American Fund on a semi-annual basis, in its sole
discretion, as applicable, each date at which Capital Commitments shall have
been accepted by the North American General Partner, being an
“Acceptance Date”.
Drawdown of
Capital
Commitments

The North American General Partner will drawdown Capital Commitments
from those Limited Partners who have an unpaid outstanding Capital
Commitment (an “Undrawn Capital Commitment”), on a pro rata basis
based on the amount of the respective Capital Commitments made by each
such Limited Partner to the North American Fund, giving priority to earlier
Vintages in a manner fully described in the Limited Partnership Agreement.

The North American General Partner will provide no less than ten (10)
business days’ prior written notice of any drawdown of Undrawn Capital
Commitments to the North American Fund’s Limited Partners.

Capital Commitments made to the North American Fund will be drawn down
to respond to a capital call made by either the Canadian Fund or the US
Fund, for working capital purposes, to pay Fund expenses, to redeem LP
Units being the object of a Redemption Request (as defined below) or for any
other purpose which the North American General Partner reasonably
determines.

As of any date, each Limited Partner of the North American Fund will hold an
interest in the North American Fund representing its pro rata share of the NAV
of the North American Fund, based on the number of LP Units it holds at such
time, over the total outstanding LP Units of at such time, irrespective the date
or dates on which it will acquire its respective LP Units and irrespective of its
total Capital Commitment.

The North American Fund may provide guarantees, security, surety, bonds,
letters of credit or other kind of support to any third party (directly or indirectly)
in order to secure any bid or proposal that the North American Fund will
Credit Support
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Section 6.0 – Summary of Principal Terms
submit to such third party in connection with the Canadian Fund’s or the US
Fund’s participation in any bidding process, provided that recourse is limited
to a Portfolio Investment or provided that it does not exceed 20% of total
Capital Commitments to the Canadian Fund (excluding for purposes of such
test: contingent funding commitments and trade credit in the ordinary course
of business).

The North American Fund may borrow by drawing on lines of credits or incur
other forms of indebtedness and use the proceeds of any such borrowing for
the North American Fund’s business; provided that the outstanding amount of
all such borrowings (and the outstanding amount of all of the guarantees
mentioned in the paragraph above) by the North American Fund will at no
time exceed 20% of total Capital Commitments to the North American Fund
(excluding for purposes of such test: contingent funding commitments,
guarantees of entities through which Portfolio Investments are made
(“Portfolio Entities”) (provided that recourse is limited to the relevant
Portfolio Investment) and trade credit in the ordinary course of business).
Recycling of
Capital

The Undrawn Capital Commitment of a Limited Partner of the North American
Fund will be increased, by the amount of Capital returned to such Limited
Partner within twelve (12) months of having been drawn down originally
(subject to certain conditions).
Limited Partners

Each investor investing directly in the North American Fund becomes a
special partner of the North American Fund upon making a Capital
Commitment (a “Limited Partner” and, collectively with the other special
partners in the North American Fund, the “Limited Partners”) and remains a
Limited Partner as long as it has a Capital Commitment or LP Unit
outstanding.

The Limited Partners shall not take part in the administration of the North
American Fund nor shall they transact any business for the North American
Fund, nor shall they have the power to act or bind the North American Fund,
said powers being vested solely in the North American General Partner.

The liability of each Limited Partner for the debts, liabilities and obligations of
the North American Fund will be limited to the amount of its Undrawn Capital
Commitment, plus its percentage of the undistributed NAV of the North
American Fund.

No Limited Partner of the North American Fund will have priority over any
other Limited Partner of the North American Fund, either as to the return of
the amount of its capital contribution or as to any allocation of income, gain,
loss, deduction or credit.

Except as discussed under the heading “Redemption Right”, no Limited
Partner will have the right to withdraw capital contributed to the North
American Fund. Except as provided in the Limited Partnership Agreement of
the North American Fund, no Limited Partner will be entitled to withdraw or
cancel any Capital Commitment made to the North American Fund prior to
such Capital Commitment being drawn down by the North American General
Partner.

Subject to a Limited Partner’s Redemption Right, no Limited Partner will be
permitted to withdraw from the North American Fund prior to its dissolution.

Except as otherwise permitted under the Limited Partnership Agreement of
the North American Fund, no Limited Partner will be entitled to sell, exchange,
assign, encumber, alienate or otherwise transfer (a “Transfer”) any of its LP
Transfer of
Limited
Partnership
Interest
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Section 6.0 – Summary of Principal Terms
Units or any portion of its Capital Commitment (collectively, a “Limited
Partner Interest”) without the prior written consent of the North American
General Partner and upon compliance with certain requirements set forth in
the Limited Partnership Agreement of the North American Fund. A Limited
Partner that requests a transfer of its Limited Partner Interest (in whole or
part) shall reimburse the North American Fund and North American General
Partner for any out-of-pocket expense incurred in connection with considering
such request, including attorney costs.
Redemption
Right

Notwithstanding the foregoing, (i) transfers of LP Units between Limited
Partners or affiliates of Limited Partners will, subject to certain specific
conditions, be permitted and (ii) the North American General Partner will not
unreasonably withhold its approval to the transfer of Limited Partner Interests
by a Limited Partner.

At any time, a Limited Partner may, by submitting a written redemption
request in the form prescribed by the North American General Partner (a
“Redemption Request”) during the applicable period (the “Redemption
Notice Period”), request that on the next redemption date determined by the
North American General Partner (the “Redemption Date”) all or a portion of
its LP Units be redeemed by the North American Fund. In order to be
provided with sufficient funds to proceed to the redemption of the LP Units
being the object of Redemption Requests, the North American General
Partner will be entitled to first draw down on Capital Commitments not fully
drawn down, in accordance with the process discussed under the heading
“Drawdown of Capital Commitments”. The North American General Partner
will determine the date upon which each Redemption Date will occur, in its
discretion. The North American General Partner will be entitled at any time,
but will not be not required, to make a capital call on the existing Undrawn
Capital Commitments in order to pay the redemption price for any LP Units to
be redeemed, in its discretion.

Upon a Limited Partner making a Redemption Request, the North American
Fund will make a Redemption Request to the Canadian Fund and the US
Fund to have the number of LP Units of the Canadian Fund and US Fund
representing the pro rata number of LP Units of the North American Fund
tendered for redemption pursuant to such Redemption Request. The
allocation of such Redemption Request between the Canadian Fund and the
US Fund will be at the discretion of the North American General Partner.

The exercise of a Redemption Right by a Limited Partner will not have any
impact on its outstanding Undrawn Capital Commitment. However, the
amount of such Limited Partner’s aggregate Capital Commitment will be
reduced by the amount of the proceeds received by the Limited Partner as a
result of such redemption.

If the aggregate amount of all Redemption Requests for LP Units of the North
American Fund requested to be redeemed on a Redemption Date plus all LP
Units that have already been redeemed within the same calendar year
represents an amount that exceeds 20% of the NAV of the North American
Fund, the North American Fund shall honour Redemption Requests made
during the Redemption Notice Period related to such Redemption Date, on a
pro rata basis (provided that any Redemption Request made during a
previous Redemption Notice Period and queued as described below shall be
honoured in full prior to the North American Fund honouring any Redemption
Request made during a subsequent Redemption Notice Period) up to an
amount such that the aggregate amount of LP Units redeemed within that
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Section 6.0 – Summary of Principal Terms
calendar year shall be equal to 20% of the NAV of the North American Fund
on such Redemption Date, and will establish a redemption queue in respect
of those LP Units included in all such Redemption Requests that have not
been redeemed on such Redemption Date. The North American Fund will
also in other specific circumstances provided in the relevant Limited
Partnership Agreement be entitled not to redeem any of the LP Units until
such circumstances no longer exist. No interest shall accrue on any amounts
during the deferral of the payment of any Redemption Requests, and the
value of such holdings will remain at the risk of the business of the North
American Fund until redeemed.

For any Redemption Requests presented during a Redemption Notice Period
that have not yet been redeemed, the North American General Partner will,
for the five (5) years following the Redemption Notice Period, continue to
make efforts to effect the Redemption Requests by notably allocating the
distributions that would otherwise have been made to the Limited Partners of
the North American Fund following that first anniversary date to the payment
of the redemption price for the redemption of such LP Units not yet redeemed
and using commercially reasonable efforts to sell, otherwise dispose or
monetize future income of LP Units of the Canadian Fund and of the US Fund
it holds (directly or indirectly) to generate proceeds sufficient to redeem all
remaining LP Units of the North American Fund included in such Redemption
Requests.

If on the third (3rd) anniversary date of the last day of a Redemption Notice
Period related to a Redemption Notice tendered prior to November 29, 2020,
there remain LP Units that were included in Redemption Requests presented
during such Redemption Notice Period that still have not been redeemed, the
Limited Partners who presented such Redemption Requests will be entitled to
require the North American General Partner to call a special meeting of the
Limited Partners of the North American Fund, to vote on a resolution to windup and liquidate the North American Fund. In such a case, the decision to
wind-up and liquidate the North American Fund will require the adoption of a
Special Resolution of the Limited Partners of the North American Fund. If on
the third (3rd) anniversary date of the last date of a Redemption Notice Period
related to a Redemption Notice tendered on or after November 29, 2020,
there remain LP Units that were properly tendered for redemption during such
Redemption Notice Period that have not yet been redeemed, an Extraordinary
Partnership Resolution electing to fix an end date of the term on the sixth
(6th) anniversary date of the last day of such Redemption Notice Period shall
be deemed to have been passed and adopted, subject to certain exceptions
provided in the Limited Partnership Agreement.

If on the fourth (4th) anniversary date of the last day of a Redemption Notice
Period related to a Redemption Notice tendered prior to November 29, 2020,
there remain LP Units that were included in Redemption Requests presented
during such Redemption Notice Period that still have not been redeemed, the
Redeeming Partners that have properly tendered such LP Units for
redemption shall be entitled to require the North American General Partner to
call a meeting of holders of LP Units of the North American Fund to vote on a
Majority Resolution to wind-up and liquidate the North American Fund. If such
Majority Resolution is adopted, the North American General Partner shall
proceed to the winding-up and liquidation of the North American Fund.

If on the fifth (5th) anniversary date of the last day of a Redemption Notice
Period related to a Redemption Notice tendered prior to November 29, 2020
(the “Redemption Deadline”), there remain LP Units that were included in
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Section 6.0 – Summary of Principal Terms
Redemption Requests presented during such Redemption Notice Period that
still have not been redeemed, an Extraordinary Resolution electing to fix an
end date of the Term on the third (3rd) anniversary date of such Redemption
Deadline shall be deemed to have been passed and adopted.

The redemption price of each LP Unit will be based on its NAV per LP Unit as
at the Redemption Date on which such LP Unit is actually redeemed.

The NAV per LP Unit on each Redemption Date will be calculated in
accordance with the requirements set forth under the heading “Valuation” and
will be subject to the Redemption Discount referred to under the heading
“Redemption Discount”. In the event that a Portfolio Investment was sold or
disposed of or if the future income of such Portfolio Investment was
monetized to generate proceeds to pay, directly or indirectly, the redemption
price of redeemed LP Units, the NAV per LP Unit used to calculate the
redemption price of such redeemed LP Units will be their NAV per LP Unit on
a post-sale, post-disposal or post-monetization basis.

If a Redemption Request is received after the expiration of a Redemption
Notice Period, such request will be treated as a Redemption Request
presented with respect to the next following Redemption Notice Period. All
Redemption Requests presented will be irrevocable, subject to the North
American General Partner’s right, in its absolute discretion, to permit the
revocation of Redemption Requests. The North American General Partner will
pay the proceeds of redemption of LP Units to the relevant Limited Partner
within thirty (30) days following the applicable Redemption Date.

The Fund expenses incurred in connection with the redemption of LP Units
will be borne, on a pro rata basis, by those Limited Partners whose LP Units
will have been redeemed, pro rata based on the number of LP Units so
redeemed, and will be reimbursed by them to the North American Fund or
withheld from the redemption proceeds otherwise payable to the Limited
Partner whose LP Units are being redeemed.
Redemption
Discount

The redemption of LP Units is subject to a redemption discount in the first five
(5) years of their subscription (the “Redemption Discount”). The Redemption
Discount to NAV for LP Units redeemed in the first year will be 7.5%,
decreasing by 1.5% each year thereafter (i.e. 6.0% in year 2, 4.5% in year 3,
etc.).
Defaults

The failure of a Limited Partner that has an Undrawn Capital Commitment to
make a required capital contribution to the North American Fund (a
“Defaulting Limited Partner”), after notice of drawdown is provided by the
North American General Partner, will be subject to default provisions which
will be provided in the Limited Partnership Agreement of the North American
Fund.

Pursuant to such default provisions and until all amounts in default and all
interest accumulated thereon have been paid in full by the Defaulting Limited
Partner:
i.
the Defaulting Limited Partner will be deemed to have forfeited certain
rights under the North American Fund Limited Partnership
Agreement, including the right to vote on matters requiring the
consent of Limited Partners and the right to request that its LP Units
be redeemed as discussed under the heading “Redemption Rights”;
and
ii.
all amounts otherwise distributable to such Defaulting Limited Partner
will be applied in satisfaction of all amounts payable by such
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Defaulting Limited Partner.
Distributions

In addition, the North American General Partner will, in its absolute discretion
and without limitation, inter alia, be entitled to take any of the following actions
with respect to a Defaulting Limited Partner, which rights will be cumulative
and non-exclusive:
i.
remove the right of the Defaulting Limited Partner to make further
capital contributions, until all amounts in default and all interest
accumulated thereon have been paid in full by the Defaulting Limited
Partner;
ii.
charge the Defaulting Limited Partner interest at the rate to be
provided in such Limited Partnership Agreement on the defaulting
amount;
iii.
force the redemption or sale by the Defaulting Limited Partner of its
LP Units at a price to be discounted at the rate provided in the Limited
Partnership Agreement (with the proceeds of any such sale or
redemption being applied first to the payment of all default amount);
and
iv.
exercise any other remedy available under applicable law.

The exercise or failure to exercise by the North American General Partner of
any of the remedies set out above will not prejudice the right of the North
American General Partner to pursue any other available legal remedies
against the Defaulting Limited Partner. Any economic impact of the failure of
the North American Fund to make a capital contribution to either the
Canadian Fund or the US Fund will be allocated to the Defaulting Limited
Partner.

The North American General Partner will, from time to time in respect of
periods of activity, determine distributions to be made to the Limited Partners
of the North American Fund.

Regardless of when any Limited Partner’s Capital Commitment is drawn
down, each Limited Partner will be entitled, pro rata with the other Limited
Partners based on the number of LP Units held by all Limited Partners, to all
distributions made by the North American Fund, regardless of which of the
Canadian Fund or US Fund or which Portfolio Investment such distribution
relates to (and regardless of the date on which such Portfolio Investment was
made by the Canadian Fund or the US Fund), subject to exceptions set forth
in the Limited Partnership Agreement of the North American Fund (including
with respect to defaults and Limited Partners excluded from certain Portfolio
Investments).

The North American General Partner will be entitled to withhold from any
distributions amounts necessary to, as determined in its sole discretion,
satisfy, or create reasonable reserves for working capital, fees and expenses
(including, without limitation, the Commitment Fee, the Management Fee and
all expenses reimbursable to the North American General Partner or the
Canadian Manager) and liabilities of the North American Fund, as well as for
any required tax withholdings, as determined in its sole discretion. The North
American General Partner expects to distribute the majority of the cash
available for distribution and not to retain significant cash balances in excess
of prudent operational and capital reserves, excluding all cash flows
generated indirectly to the North American Fund by the refinancing of any
Portfolio Investment and all capital proceeds resulting from the sale,
alienation or transfer by any of the Canadian Fund or the US Fund of any part
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Section 6.0 – Summary of Principal Terms
or interest in a Portfolio Investment or a Portfolio Entity. Distributions prior to
the dissolution of the North American Fund may only take the form of cash.

Subject to the prior payment of certain amounts to the North American
General Partner from distributions that would otherwise be distributed to
Limited Partners as described under “Removal and Resignation of the
General Partner” below and such exceptions as are set forth in the Limited
Partnership Agreement of the North American Fund (including with respect to
defaults and Limited Partner exclusions from Portfolio Investments), all
amounts distributed by the North American Fund will be distributed to the
Limited Partners and the North American General Partner, on a pro rata basis
based on their interest in the North American Fund.
Offering and
Organizational
Expenses

The North American Fund will bear all costs, disbursements, fees and
expenses it incurs in connection with (i) the formation of the North American
Fund, including, without limitation, all expenses and fees incurred in
connection with the preparation and filing of its organizing documents and (ii)
the offering, sale and issuance of the LP Units of the North American Fund.
The costs, disbursements and fees to be assumed by the North American
Fund will include, without limitation, any travel and accommodation expenses
and expenses incurred in connection with the preparation of any offering
memorandum (including fees and expenses of legal and tax counsel), any
subscription materials and any other agreements or documents relating to the
offering of the LP Units, and costs and expenses (collectively, the “Offering
and Organizational Expenses”).
Organizational
Cost-Sharing
Contribution

Within ten (10) days from the acceptance of its Capital Commitment, each
Limited Partner will pay an organizational cost-sharing contribution (the
“Organizational Cost-Sharing Contribution”) to the North American Fund
equal to 0.3% of the amount of such Capital Commitment. The Organizational
Cost-Sharing Contribution will be used to reimburse the North American
General Partner and the Canadian Manager for (i) the Offering and
Organizational Expenses assumed by them (as defined and as further
discussed under the heading “Offering and Organizational Expenses”) relating
to the North American Fund and the portion of such Offering and
Organizational Expenses that corresponds to its pro rata share of the LP
Units of the US Fund and of the Canadian Fund and (ii) the costs and
expenses associated with the completion of such Limited Partner’s Capital
Commitment. The balance of such Organizational Cost-Sharing Contribution
will be kept by the North American Fund for general partnership purposes.
Commitment
Fee and
Management
Fee

Each Limited Partner will in respect of each Capital Commitment, pay to the
North American Fund, which will repay such amount to the Canadian
Manager as consideration for the advisory services rendered by it, an annual
commitment fee (the “Commitment Fee”) as follows:
o From the Acceptance Date of such Limited Partner’s Capital
Commitment until the first anniversary date of such Acceptance
Date, the Commitment Fee shall be equal to 0.75% of the then
Undrawn Capital Commitment of such Limited Partner.
o From the first anniversary date of the Acceptance Date of such
Limited Partner’s Capital Commitment until the second anniversary
date of such Acceptance Date, the Commitment Fee shall be equal
to 0.50% of the then Undrawn Capital Commitment of such Limited
Partner.

The Manager charges a Management Fee to Limited Partners ranging from
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Section 6.0 – Summary of Principal Terms
1.45% to 0.75%, varying in relation to the amount of the Capital Commitment
made and the passage of time (the “Management Fee”).
Payment of
Commitment
Fee and
Management
Fee

The Commitment Fee and Management Fee will be payable quarterly in
advance on the first business day of each January, April, July and October.
The Commitment Fee and the Management Fee will be adjusted prior to each
payment date to reflect the difference between the Commitment Fee and
Management Fee actually paid for the previous quarter and the amount of the
Commitment Fee and Management Fee that should have been paid for such
previous quarter taking into account the Drawdown on Capital Commitments
made in the course of such previous quarter.
Incentive Fee

On each of the 10 and 11 anniversary of their Capital Commitment and as
th
of the later of the calendar year during which the 12 anniversary of its Capital
Commitment occurs and the calendar year during which the distributions
actually received by it shall be at least equal to the capital contributions made
pursuant to such Capital Commitment occurs, a Limited Partner will pay to the
North American General Partner an annual portion of an “Incentive Fee”
based on a hypothetical liquidation of all Portfolio Investments on each such
anniversary date at their NAV (the “Incentive Fee”). The annual portion of
such Incentive Fee will be equal to one third of the Incentive Fee calculated
for each such anniversary date using actual and deemed distributions, by
notionally allocating such amounts between the Limited Partner and the North
American General Partner as follows:
i.
first, 100% to the Limited Partner until the cumulative amount
distributed to the Limited Partner is equal to the aggregate amount of
all capital contributions made by the Limited Partner at or prior to the
time of such distribution;
ii.
second, 100% to the Limited Partner until the cumulative amount
distributed to the Limited Partner would provide the Limited Partner
with an IRR of 8% on their capital contribution;
iii.
third, 50% retained by the Limited Partner and 50% distributed to the
North American General Partner until the cumulative amount
distributed to the North American General Partner is equal to 15% of
the aggregate of all amounts distributed to, and retained by the
Limited Partner under paragraph (ii) above and this paragraph (iii);
and
iv.
thereafter, 85% to the Limited Partner and 15% to the North American
General Partner.

Allocations to the North American General Partner pursuant to paragraphs (iii)
and (iv) are together referred to as the “Incentive Fee” and one third of the
amount so calculated will be paid to the North American General Partner as of
each Incentive Fee payment date.

Should any Limited Partner exercise its right to have any of its LP Units
redeemed before the payment in full of the Incentive Fee, the Incentive Fee
(or the balance thereof) will be determined as at the date of redemption
(taking into account the applicable Redemption Discount) and paid out using
redemption proceeds.

In the event the Fund is wound-up before the payment in full of the Incentive
Fee, the Incentive Fee payable will be determined as at that date and paid out
using wind-up proceeds.

All applicable goods and services tax/ harmonized sales tax and Québec
GST/HST and
th
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Section 6.0 – Summary of Principal Terms
QST
sales tax will be added to all fees and expenses payable by the North
American Fund to the North American General Partner, including the
Management Fee, the Commitment Fee, the Offering and Organizational
Expenses and the Fund expenses.
Asset
Management

The North American General Partner may provide, directly or through an
affiliate (including the Canadian Manager or the US Manager (as defined
below)), to any person in which the Canadian Fund or the US Fund holds
Portfolio Investments, asset or project management services, provided that
the North American General Partner, or its affiliate, as the case may be, may
receive fees for the provisions or arrangement thereof only on terms no less
favourable to such person than would be obtained on an arm's-length basis.
The portion of such fees paid by such person (excluding the portion of such
fees that constitute the recovery of costs incurred by the North American
General Partner, or its affiliates, as the case may be, to provide such services
and related expenses, including, without limitation, in connection with costs
incurred in respect of the services of personnel of the North American
General Partner dedicated to a particular Portfolio Investment) that are
received by the North American General Partner (or any of its affiliates
including the Canadian Manager or the US Manager) that represents the
North American Fund’s pro rata interest in such Portfolio Investment will be
applied to prospectively reduce the Management Fee otherwise payable in
respect of the North American Fund.
Dealings
between the
Fund, the
General Partner
and the Manager

Except as expressly contemplated in the Limited Partnership Agreement of
the North American Fund or in the Management Services Agreement, all
dealings between the North American Fund, its General Partner and the
Canadian Manager will be performed on an arm’s length basis.
Key Persons

The ability of the North American Fund to make new investments will be
th
suspended if (i) before the tenth (10 ) anniversary date of the first Vintage,
Mr. Pierre Anctil or both Messrs. Stéphane Mailhot and Juan Caceres or (ii)
thereafter, if any two of Messrs. Pierre Anctil, Stéphane Mailhot and Juan
Caceres, cease to be actively involved with the Canadian Manager and to
spend a sufficient portion of their working time attending to the business of the
North American Fund and as necessary to meet the Investment Objective of
the Fund (a “Key Person Event”); provided that the North American Fund will
be permitted to respond to a capital call made by the Canadian Fund or the
US Fund to transact any investment transaction in progress as of the date of
such Key Person Event occurred or to make any follow-on investments in
existing Portfolio Entity for the purpose of protecting an existing Portfolio
Investment and to pay on-going expenses of the Canadian Fund and the US
Fund.

The suspension of new investments will remain in effect following a Key
Person Event until (i) the Canadian Manager has nominated suitably qualified
replacements that have been approved in accordance with the Limited
Partnership Agreement, (ii) the Limited Partners, by Extraordinary Resolution,
elect to remove and replace the North American General Partner or (iii) the
Limited Partners, by Majority Resolution (as defined herein), vote to restore
the ability of the North American Fund to make investments.

If the North American General Partner is found to have engaged in certain
disabling conduct, Limited Partners of the North American Fund may by
Majority Resolution elect to remove the General Partner of the North
“For cause” and
“no fault”
Removal and
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Section 6.0 – Summary of Principal Terms
Resignation of
the General
Partner of a
Fund
Valuation
American Fund.

Limited Partners of the North American Fund may elect, by Extraordinary
Resolution without having to demonstrate “cause”, to remove the North
American General Partner.

Except as permitted by Limited Partners of the North American Fund by
Special Resolution or except if the Canadian General Partner and the US
General Partner are removed without cause, the North American General
Partner will not be entitled to resign as general partner of the North American
Fund.

Upon the North American General Partner being removed as general partner,
the Limited Partners shall pay to the Fund, on a pro rata basis based on their
respective Capital Commitments, and the Fund shall then pay to the removed
North American General Partner, an Incentive Fee calculated (as described
under the heading “Incentive Fee”) as of such date.

The General Partners of the North American Fund, the Canadian Fund and
the US Fund will each year appoint a partner of the corporate finance group of
an independent accounting firm other than the accounting firm appointed as
the auditors of the Fund (the “Independent Valuator”). The Independent
Valuator shall review the fair market valuation of the NAV of the North
American Fund, the Canadian Fund and the US Fund as of June 30 of such
year calculated and reported by their respective general partner and manager
using a methodology that shall have been approved in accordance with the
Limited Partnership Agreement, and shall, prior to September 30 of such
year, provide an independent valuation report addressed to the Limited
Partners confirming whether the said valuation is acceptable as result of
being within a range of acceptable values. The Independent Valuator of the
North American Fund shall be the same person as the independent valuator
of the Canadian Fund and the US Fund.

Should the NAV of the North American Fund, as reported by the North
American General Partner and the Canadian Manager, be contested by any
party so entitled under the Limited Partnership Agreement, the North
American General Partner shall appoint, upon the recommendation of said
party, a partner of the corporate finance group of an independent accounting
firm other than the accounting firm appointed as auditors of the Fund and
other also than the accounting firm of which the Independent Valuator is a
partner, to perform a second valuation of such NAV (the “Second
Independent Valuator”). Further to the situation described above, the
aggregate NAV of the North American Fund will be equal to arithmetic
average of (i) the midpoint of the range of values of such NAV as determined
by the Independent Valuator and (ii) the midpoint of the range of values of
such NAV as determined by the Second Independent Valuator, and shall be
final and binding on all parties.

The NAV per LP Unit will be determined based on the most recent available
valuation of the North American Fund plus an interest thereon at an annual
rate of 8% accrued from the date of such valuation (or any revised rate as
approved in accordance with the Limited Partnership Agreement of the North
American Fund). The North American General Partner will be entitled to
adjust the NAV per LP Unit to reflect any material event that occurred in
connection with a Portfolio Investment since the most recent valuation,
provided that if such adjustment is higher than 2% it shall obtain all approvals
required under the Limited Partnership Agreement.
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Section 6.0 – Summary of Principal Terms

The Limited Partnership Agreement of the North American Fund will set forth
certain procedures for its amendment, generally with the consent of the North
American General Partner and the consent of the Limited Partners of the
North American Fund by Special Resolution to the extent such amendment
does not affect the distributions or increase any financial obligation or liability
as Limited Partner beyond that contemplated in the Limited Partnership
Agreement of the North American Fund.

The Limited Partnership Agreement will also include customary provisions
allowing the North American General Partner to make certain amendments to
the Limited Partnership Agreement without the consent of the Limited
Partners of such Fund in order to, amongst other things, (i) reflect the
admission of one or more additional special partners or any transfer of LP
Units, (ii) change the name of the North American Fund, (iii) satisfy any
applicable law, (iv) execute an updated version of the Limited Partnership
Agreement updating and incorporating any previous replacements, additions
and other amendments, and generally, (v) in a manner that has no material
adverse effect on any Limited Partner or that benefits all Limited Partners.

The North American Fund will be dissolved:
i.
if the North American General Partner determines that changes in any
law would be materially burdensome to the North American Fund;
ii.
a judicial decree of dissolution has been obtained;
iii.
if Limited Partners of the North American Fund determine by
Extraordinary Resolution that the North American Fund will be
dissolved, provided that at least five (5) years have elapsed since the
creation of the North American Fund; or
iv.
in the circumstances described under the heading “Redemption
Right”.

The General Partner of the North American Fund will act as liquidator of the
North American Fund, and will proceed to the orderly winding-up of its affairs
and will be granted a period of at least three years to complete such windingup.
Exculpation and
Indemnification

None of the North American Fund General Partner, the Canadian Manager,
their respective affiliates, or the directors, officers, partners, members,
employees or agents of each of them (each a “Covered Person”) will be
liable to the North American Fund or to the Limited Partners for any good faith
act or omission of such Person, except for any such act or omission
constituting gross fault, intentional fault or fraud by such Covered Person.
The North American Fund will indemnify each Covered Person against all
claims, damages, liabilities, costs and expenses to which they may be or
become subject by reason of their activities on behalf of the North American
Fund, except to the extent that such claims, damages, liabilities, costs or
expenses are determined to have resulted from such Person's own gross
fault, intentional fault or fraud or other disabling conduct as described in more
detail in the Limited Partnership Agreement of the North American Fund.
Confidentiality

Subject to certain exceptions, no Limited Partner of the North American Fund
will disclose to any Person any information related to the North American
General Partner, the North American Fund, the Canadian Fund, the US Fund,
any Portfolio Investment or proposed Portfolio Investment or any of their
respective affiliates, in each case, that is not publicly available, provided that
a Limited Partner may disclose any such information (i) to the extent required
Amendments
Dissolution
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Section 6.0 – Summary of Principal Terms
pursuant to any law or regulation or pursuant to any rule or policy of a stock
exchange on which securities of such Limited Partner are listed for trading, (ii)
to directors, officers, employees and legal, financial and tax advisors of such
Limited Partner, so long as such disclosure is for a bona fide business
purpose of such Limited Partner and any such recipient is informed of the
confidential nature of the information.
Fund Currency

The reference currency of the North American Fund will be the Canadian
dollar.
Risk Factors and
Potential
Conflicts of
Interest

There can be no assurance that the North American Fund’s investment
objective will be achieved, or that a Limited Partner will receive a return of its
capital. An investment in the North American Fund involves significant risks
and potential conflicts of interest. For a more detailed discussion of risks and
conflicts of interests applicable to an investment in the North American Fund,
please refer to Section 7.0 entitled “Certain Risk Factors”.
Governing Law

The Limited Partnership Agreement of the North American Fund will be
governed by and construed in accordance with the laws of the Province of
Québec and the federal laws of Canada applicable therein.
6.2
Fiera Axium Infrastructure Canada II Limited Partnership
The Fund

Fiera Axium Infrastructure Canada II Limited Partnership (the “Canadian
Fund”, or in this table, the “Fund”), a limited partnership established under the
laws of the Province of Québec, Canada.
Fund Structure

Open-ended limited partnership established for purposes of completing and
holding investments in Canadian assets. Limited Partners electing to invest in
the Fund may do so through capital commitments to such Fund (each a
“Capital Commitment”).

Limited Partners that are not Canadian residents will be required to form a
wholly-owned Canadian corporation to make their investment in the Canadian
Fund.

Fiera Axium Infrastructure Canada Partner Inc. (the “Canadian General
Partner”), a corporation incorporated under the Canada Business
Corporations Act, and a wholly-owned subsidiary of Fiera Axium Infrastructure
Inc. (the “Canadian Manager”), acts as general partner of the Canadian Fund.

The Canadian General Partner (acting directly or through its duly appointed
agents (including the Canadian Manager)) will be vested with full, exclusive
and complete right, power and discretion to operate and conduct the affairs of
the Canadian Fund.

The Canadian General Partner will have unlimited liability for the debts,
liabilities and obligations of the Canadian Fund, in accordance with applicable
law.

Pursuant to the terms of a Management Services Agreement, the Canadian
General Partner has delegated to the Canadian Manager all or substantially all
of its management and administrative services, and in connection with such
delegation, the Canadian Manager is entitled to bind the Canadian Fund as
attorney-in-fact for the Canadian Fund and the Canadian General Partner.
General Partner
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Section 6.0 – Summary of Principal Terms
Manager

Fiera Axium Infrastructure Inc., a corporation incorporated under the Canada
Business Corporations Act and jointly controlled by Fiera Capital Corporation
and Axium Infrastructure Management Inc., or any of its wholly-owned
affiliates, provides day-to-day management services to the Canadian Fund
and, in such capacity, will act as agent for the Canadian General Partner.
Fund Objective

The Fund’s objective is to generate attractive risk-adjusted returns primarily
through equity, quasi equity, convertible and subordinated debt and equityrelated investments in Infrastructure Assets (as herein defined) located in
Canada, and to engage in such activities that are incidental to such objective.

The Canadian Fund seeks to invest in core Infrastructure Assets (as herein
defined).

As used herein, “Infrastructure Assets” means assets or businesses and
companies related to the transportation, energy and social infrastructure subsectors, including, without limitation:
i.
transportation assets, including without limitation roads, tunnels,
bridges, air and sea ports and mass transit systems;
ii.
energy infrastructure assets, including without limitation power
generation, transmission and distribution systems, pipelines and gas
collection and distribution systems; and
iii.
social assets, including without limitation hospitals and other medical
care facilities, schools, courthouses and other institutional buildings.

The Canadian Fund will target an internal rate of return (“IRR”) to Limited
Partners (as herein defined) of 9% to 12%, after payment of all management
fees, incentive fees and fund expenses. There is no assurance that this
target range of IRR will be achieved and actual returns to Limited
Partners may be materially different than targeted range of returns.

Any change to the objective of the Canadian Fund will require the adoption of
a unanimous resolution of the Limited Partners and of the holders of Feeder
Partnership Special Voting Interests (as hereinafter defined).

The Canadian Fund will observe the following guidelines:
i.
no investment will be made in assets other than assets located in
Canada (provided that it shall be entitled to invest in an asset located
in part in Canada and in part in the United States as long as such
investment does not result in the Canadian Fund having a “permanent
establishment”, a “fixed place of business” or the equivalent taxable
nexus in any jurisdiction other than Canada);
ii.
no more than the greater of either (i) 20% of total aggregate Capital
Commitments or (ii) $75 million will be invested in a single project;
iii.
no more than 60% of total aggregate Capital Commitment will be
invested in assets located in a single province in Canada;
iv.
at any given time, no more than 40% of total aggregate Capital
Commitments will be invested in greenfield portfolio investments; it
being understood that upon a greenfield portfolio investment having
been commissioned and generating operating cash flows, it will cease
to be considered as a greenfield portfolio investment for the purposes
hereof and will thereupon become an operating portfolio investment;
v.
no investment will be made in projects considered to be non
environmentally-friendly by the Canadian General Partner;
vi.
no investment will be made in projects that the Canadian General
Investment
Policy
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vii.
viii.
Partner considers to incorporate technological risk components;
no investment will be made in Infrastructure Assets whose shares or
other equity ownership interests are publicly traded after the time the
investment is made, unless such shares or other equity interests will
cease to be publicly traded as a result of such investment; and
no investment will be made in senior debt securities.

The Canadian Fund will only invest in projects whose management
demonstrates, in the Canadian General Partner’s opinion, a principle of strong
and healthy labour relations with their employees and whose management
and, to the extent employees are unionized, labour unions, in the Canadian
General Partner’s opinion, work respectfully with each other in balancing the
appropriate needs of both constituencies. Further, the Canadian Fund will not
invest in projects considered by the Canadian General Partner not to have
good relations with their employees or which do not, in the opinion of the
Canadian General Partner, support fair wage and employment practices.
Furthermore, in respect of proposed greenfield portfolio investments, the
Canadian Fund will only invest in projects where it is expected that the
management thereof will not purposely or actively exclude unionized
employees and in respect of a proposed already operating portfolio investment
that the management thereof will not purposely or actively reduce the number
of unionized employees.

The Principles of Responsible Investment published by the Secretariat of the
Principles for Responsible Investment Initiative, as amended from time to time
(“PRI”), will be used by the Canadian Fund for guidance purposes in complying
with the terms of the Canadian Fund Investment Policy.
Feeder
Partnership
Special Voting
Interests

Each of the special partners of the North American Fund will be issued, with
respect to each LP Unit of the North American Fund it holds, a number of
special voting interests (each a “Feeder Partnership Special Voting
Interest”) representing its indirect interest in the Canadian Fund for purpose of
providing such special partners direct voting rights with respect to the
Canadian Fund.
Manager
Commitment

The Canadian Manager will, for each Vintage, commit to invest in the capital of
the Canadian Fund, directly or through an affiliate, an amount such that it shall
have at all times (with its affiliates) an aggregate Capital Commitment to the
Canadian Fund equal to at least 1% of the total aggregate outstanding Capital
Commitments made by all Limited Partners (other than the North American
Fund or its subsidiaries) to the Canadian Fund (the “Manager Commitment”),
in the aggregate.
Fund Term

The Canadian Fund will have an indefinite term (the “Term”) and will be
authorized to accept additional Capital Commitments indefinitely (subject to
the rights of the Limited Partners set forth under the heading “Reduced Term”
below).

Upon having reached a threshold of C$1,000,000,000 of aggregate Capital
Commitments, the Fund shall require the adoption of a Majority Resolution (as
hereinafter defined) to accept further Capital Commitments and upon having
reached a threshold of C$1,500,000,000 of aggregate Capital Commitments,
the Canadian Fund shall require the adoption of a Special Resolution (as
hereinafter defined) to accept further Capital Commitments.

Notwithstanding the foregoing, the Limited Partners and holders of Feeder
Partnership Special Voting Interests of the Canadian Fund, may after the
Reduced Term
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Section 6.0 – Summary of Principal Terms
th
fifth (5 ) anniversary date of the initial closing:
a. by a resolution passed by at least two (2) holders of LP Units of the
Canadian Fund and/or holders of Feeder Partnership Special Voting
Interests holding at least sixty-six and two-thirds percent (66⅔%) of all
outstanding LP Units and Feeder Partnership Special Voting Interests
(“Special Resolution”), cause the Canadian Fund to cease to accept
new Capital Commitments and, in such case, (1) the Canadian
General Partner will thereafter cease to accept new Capital
Commitments and (2) the Limited Partners of the Canadian Fund will
be deemed to have waived any right to any investment opportunities
presented to the Canadian Fund subsequent to the date of such
Special Resolution and in connection with any follow-on investments
on existing Portfolio Investments; and
b. by a resolution passed by at least two (2) holders of LP Units of the
Canadian Fund and/or holders of Feeder Partnership Special Voting
Interests holding more than seventy-five percent (75%) of all
outstanding LP Units and Feeder Partnership Special Voting Interests
(“Extraordinary Resolution”), to fix an end date to the Term of the
Canadian Fund. Further to such Extraordinary Resolution having been
passed, the end date of the Term of the Canadian Fund will be a date
rd
set forth in such resolution, but no sooner than the third (3 )
anniversary date of the date on which the resolution shall have been
passed. At the expiry of such Term, the Canadian General Partner will
have the option, in its absolute discretion, to extend the Term of the
Canadian Fund for an additional period of one (1) year and, with the
approval by a resolution approved by more than 50% of the votes cast
by at least two (2) holders of LP Units and/or holders of Feeder
Partnership Special Voting Interests (“Majority Resolution”), for a
further period of one (1) year; provided that, in such case, (1) the
Canadian General Partner will thereafter cease to accept Redemption
Requests and shall have no obligation to honour any prior Redemption
Requests and (2) the Limited Partners of the Canadian Fund will be
deemed to have waived any right to any investment opportunities
presented to the Canadian Fund subsequent to the date of such
Special Resolution and in connection with any follow-on investments in
existing Portfolio Investments.

The holders of Canadian LP Units and of Feeder Partnership Special Voting
Interests may, by Special Resolution, elect to terminate the right of the
Canadian General Partner to complete additional Portfolio Investments.
Acceptance of
Capital
Commitments

The Canadian General Partner generally intends to accept Capital
Commitments to the Canadian Fund on a semi-annual basis, in its sole
discretion, as applicable, each date at which Capital Commitments shall have
been accepted by the Canadian General Partner, being an “Acceptance
Date”.
Drawdown of
Capital
Commitments

The Canadian General Partner will drawdown Capital Commitments from
those Limited Partners who have an unpaid outstanding Capital Commitment
(an “Undrawn Capital Commitment”), giving priority to earlier Vintages in a
manner fully described in the Limited Partnership Agreement.

The Canadian General Partner will provide no less than ten (10) business
days’ prior written notice of any drawdown of Undrawn Capital Commitments
to the Canadian Fund’s Limited Partners.
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
Capital Commitments made to the Canadian Fund will be drawn down to make
Portfolio Investments, for working capital purposes, to pay Fund, to redeem LP
Units being the object of a Redemption Request (as defined below) or for any
other purpose which the Canadian General Partner reasonably determines.

As of any date, each Limited Partner of the Canadian Fund will hold an interest
in the Canadian Fund representing its pro rata share of the NAV of the
Canadian Fund, based on the number of LP Units it holds at such time, over
the total outstanding LP Units of at such time, irrespective the date or dates on
which it will acquire its respective LP Units and irrespective of its total Capital
Commitment.

The Canadian Fund may provide guarantees, security, surety, bonds, letters of
credit or other kind of support to any third party (directly or indirectly) in order
to secure any bid or proposal that the Canadian Fund will submit to such third
party in connection with the Canadian Fund’s participation in any bidding
process, provided that recourse is limited to a Portfolio Investment or provided
that it does not exceed 20% of total Capital Commitments to the Canadian
Fund (excluding for purposes of such test: contingent funding commitments
and trade credit in the ordinary course of business).

The Canadian Fund may borrow by drawing on lines of credits or incur other
forms of indebtedness and use the proceeds of any such borrowing for the
Canadian Fund’s business; provided that the outstanding amount of all such
borrowings by the Fund will at no time exceed 20% of total Capital
Commitments to the Canadian Fund (excluding for purposes of such test:
contingent funding commitments, guarantees of Portfolio Entity (as defined
below) obligations (provided that recourse is limited to the relevant Portfolio
Investment) and trade credit in the ordinary course of business).
Recycling of
Capital

The Undrawn Capital Commitment of a Limited Partner of the Canadian Fund
will be increased, by the amount of capital returned to such Limited Partner
within twelve (12) months of having been drawn down originally (subject to
certain conditions).
Limited Partners

Each investor investing directly into the Canadian Fund becomes a special
partner of the Canadian Fund upon making a Capital Commitment (a “Limited
Partner” and, collectively with the other special partners in the Canadian Fund,
the “Limited Partners”) and remains a Limited Partner as long as it has a
Capital Commitment or LP Unit outstanding.

The Limited Partners shall not take part in the administration of the Canadian
Fund nor shall they transact any business for the Canadian Fund, nor shall
they have the power to act or bind the Canadian Fund, said powers being
vested solely in the Canadian General Partner.

The liability of each Limited Partner for the debts, liabilities and obligations of
the Canadian Fund will be limited to the amount of its Undrawn Capital
Commitment, plus its percentage of the undistributed NAV of the Canadian
Fund.

No Limited Partner of the Canadian Fund will have priority over any other
Limited Partner of the Canadian Fund, either as to the return of the amount of
its capital contribution or as to any allocation of income, gain, loss, deduction
or credit.

Except as discussed under the heading “Redemption Right”, no Limited
Partner will have the right to withdraw capital contributed to the Canadian
Fund. Except as discussed under the heading “Commitment and Subscription
Credit Support
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Section 6.0 – Summary of Principal Terms
Procedure”, no Limited Partner will be entitled to withdraw or cancel any
Capital Commitment made to the Canadian Fund prior to such Capital
Commitment being drawn down by the Canadian General Partner.
Transfer of
Limited
Partnership
Interest
Redemption
Right

Subject to a Limited Partner’s Redemption Right, no Limited Partner will be
permitted to withdraw from the Canadian Fund prior to its dissolution.

Except as otherwise permitted under the Limited Partnership Agreement of the
Canadian Fund, no Limited Partner will be entitled to sell, exchange, assign,
encumber, alienate or otherwise transfer (a “Transfer”) any of its LP Units or
any portion of its Capital Commitment (collectively, a “Limited Partner
Interest”) without the prior written consent of the Canadian General Partner
and upon compliance with certain requirements set forth in the Limited
Partnership Agreement of the Canadian Fund. A Limited Partner that requests
a transfer of its Limited Partner Interest (in whole or part) shall reimburse the
Canadian Fund and Canadian General Partner for any out-of-pocket expense
incurred in connection with considering such request, including attorney costs.

Notwithstanding the foregoing, (i) transfers of LP Units between Limited
Partners or affiliates of Limited Partners will, subject to certain specific
conditions, be permitted and (ii) the Canadian General Partner will not
unreasonably withhold its approval to the transfer of Limited Partner Interests
by a Limited Partner.

At any time, a Limited Partner may, by submitting a written redemption request
in the form prescribed by the Canadian General Partner (a “Redemption
Request”) during the applicable period (the “Redemption Notice Period”),
request that on the next redemption date determined by the Canadian General
Partner (the “Redemption Date”) all or a portion of its LP Units be redeemed
by the Canadian Fund. In order to be provided with sufficient funds to proceed
to the redemption of the LP Units being the object of Redemption Requests,
the Canadian General Partner will be entitled to first draw down on Capital
Commitments not fully drawn down, in accordance with the process discussed
under the heading “Drawdown of Capital Commitments”. The Canadian
General Partner will determine the date upon which each Redemption Date will
occur, in its discretion. The Canadian General Partner will be entitled at any
time, but will not be required, to make a capital call on the existing Undrawn
Capital Commitments in order to pay the redemption price for any LP Units to
be redeemed, in its discretion.

The exercise of a Redemption Right by a Limited Partner will not have any
impact on its outstanding Undrawn Capital Commitment. However, the amount
of such Limited Partner’s aggregate Capital Commitment will be reduced by
the amount of the proceeds received by the Limited Partner as a result of such
redemption.

If the aggregate amount of all Redemption Requests for LP Units of the
Canadian Fund requested to be redeemed on a Redemption Date plus all LP
Units that have already been redeemed within the same calendar year
represents an amount that exceeds 20% of the NAV of the Canadian Fund, the
Canadian Fund shall honour Redemption Requests made during the
Redemption Notice Period related to such Redemption Date, on a pro rata
basis (provided that any Redemption Request made during a previous
Redemption Notice Period and queued as described below shall be honoured
in full prior to the Canadian Fund honouring any Redemption Request made
during a subsequent Redemption Notice Period) up to an amount such that the
aggregate amount of LP Units redeemed within that calendar year shall be
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Section 6.0 – Summary of Principal Terms
equal to 20% of the NAV of the Canadian Fund on such Redemption Date, and
will establish a redemption queue in respect of those LP Units included in all
such Redemption Requests that have not been redeemed on such
Redemption Date. The Canadian Fund will also in other specific circumstances
provided in the relevant Limited Partnership Agreement be entitled not to
redeem any of the LP Units until such circumstances no longer exist. No
interest shall accrue on any amounts during the deferral of the payment of any
Redemption Requests, and the value of such holdings will remain at the risk of
the business of the Canadian Fund until redeemed.

For any Redemption Requests presented during a Redemption Notice Period
that have not yet been redeemed, the Canadian General Partner will, for the
five (5) years following the Redemption Notice Period, continue to make efforts
to effect the Redemption Requests by notably allocating the distributions that
would otherwise have been made to the Limited Partners of the Canadian
Fund following that first anniversary date to the payment of the redemption
price for the redemption of such LP Units not yet redeemed and using
commercially reasonable efforts to sell, otherwise dispose or monetize future
income of Portfolio Investments of such Fund to generate proceeds sufficient
to redeem all remaining LP Units included in such Redemption Requests,
provided.

If on the third (3 ) anniversary date of the last day of a Redemption Notice
Period related to a Redemption Notice tendered prior to November 29, 2020,
there remain LP Units that were included in Redemption Requests presented
during such Redemption Notice Period that still have not been redeemed, the
Limited Partners who presented such Redemption Requests will be entitled to
require the Canadian General Partner to call a special meeting of the Limited
Partners and holders of Feeder Partnership Special Voting Interests of the
Canadian Fund, to vote on a resolution to wind-up and liquidate the Canadian
Fund. A decision to wind-up and liquidate the Canadian Fund will require the
adoption of a Special Resolution of the Limited Partners and holders of North
American Special Voting Interest of the Canadian Fund, voting together. If on
rd
the third (3 ) anniversary date of the last date of a Redemption Notice Period
related to a Redemption Notice tendered on or after November 29, 2020, there
remain LP Units that were properly tendered for redemption during such
Redemption Notice Period that have not yet been redeemed, an Extraordinary
th
Partnership Resolution electing to fix an end date of the term on the sixth (6 )
anniversary date of the last day of such Redemption Notice Period shall be
deemed to have been passed and adopted, subject to certain exceptions
provided in the Limited Partnership Agreement.

If on the fourth (4 ) anniversary date of the last day of a Redemption Notice
Period related to a Redemption Notice tendered prior to November 29, 2020,
there remain LP Units that were included in Redemption Requests presented
during such Redemption Notice Period that still have not been redeemed, the
Redeeming Partners that have properly tendered such LP Units for redemption
shall be entitled to require the Canadian General Partner to call a meeting of
the holders of LP Units of the Canadian Fund and of the holders of Feeder
Partnership Special Voting Interests to vote on a Majority Resolution to windup and liquidate the Canadian Fund. If such Majority Resolution is adopted,
the Canadian General Partner shall proceed to the winding-up and liquidation
of the Canadian Fund.

If on the fifth (5 ) anniversary date of the last day of a Redemption Notice
Period (the “Redemption Deadline”) related to a Redemption Notice tendered
prior to November 29, 2020, there remain LP Units that were included in
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Section 6.0 – Summary of Principal Terms
Redemption Requests presented during such Redemption Notice Period that
still have not been redeemed, an Extraordinary Resolution electing to fix an
rd
end date of the Term on the third (3 ) anniversary date of such Redemption
Deadline shall be deemed to have been passed and adopted.

The redemption price of each LP Unit will be based on its NAV per LP Unit as
at the Redemption Date on which such LP Unit is actually redeemed.

The NAV per LP Unit on each Redemption Date will be calculated in
accordance with the requirements set forth under the heading “Valuation” and
will be subject to the Redemption Discount referred to under the heading
“Redemption Discount”. In the event that a Portfolio Investment was sold or
disposed of or if the future income of such Portfolio Investment was monetized
to generate proceeds to pay, directly or indirectly, for the redemption price of
redeemed LP Units, the NAV per LP Unit used to calculate the redemption
price of such redeemed LP Units will be their NAV per LP Unit on a post-sale,
post-disposal or post-monetization basis.

If a Redemption Request is received after the expiration of a Redemption
Notice Period, such request will be treated as a Redemption Request made
during the next following Redemption Notice Period. All Redemption Requests
presented will be irrevocable, subject to the Canadian General Partner’s right,
in its absolute discretion, to permit the revocation of Redemption Requests.
The Canadian General Partner will pay the proceeds of redemption of LP Units
to the relevant Limited Partner within thirty (30) days following the applicable
Redemption Date.

The Fund expenses incurred in connection with the redemption of LP Units will
be borne, on a pro rata basis, by those Limited Partners whose LP Units will
have been redeemed, pro rata based on the number of LP Units so redeemed,
and will be reimbursed by them to the Canadian Fund or withheld from the
redemption proceeds otherwise payable to the Limited Partner whose LP Units
are being redeemed.
Redemption
Discount

The redemption of LP Units is subject to a redemption discount in the first five
(5) years of their subscription (the “Redemption Discount”). The Redemption
Discount to NAV for LP Units redeemed in the first year will be 7.5%,
decreasing by 1.5% each year thereafter (i.e. 6.0% in year 2, 4.5% in year 3,
etc.).
Defaults

The failure of a Limited Partner that has an Undrawn Capital Commitment to
make a required capital contribution to the Canadian Fund (a “Defaulting
Limited Partner”), after notice of drawdown is provided by the Canadian
General Partner, will be subject to default provisions which will be provided in
the Limited Partnership Agreement of the Canadian Fund.

Pursuant to such default provisions and until all amounts in default and all
interest accumulated thereon have been paid in full by the Defaulting Limited
Partner:
i.
the Defaulting Limited Partner will be deemed to have forfeited certain
rights under the Canadian Fund Limited Partnership Agreement,
including the right to vote on matters requiring the consent of Limited
Partners and the right to request that its LP Units be redeemed as
discussed under the heading “Redemption Rights”; and
ii.
all amounts otherwise distributable to such Defaulting Limited Partner
will be applied in satisfaction of all amounts payable by such
Defaulting Limited Partner.
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Section 6.0 – Summary of Principal Terms
Distributions

In addition, the Canadian General Partner will, in its absolute discretion and
without limitation, inter alia, be entitled to take any of the following actions with
respect to a Defaulting Limited Partner, which rights will be cumulative and
non-exclusive:
i.
remove the right of the Defaulting Limited Partner to make further
capital contributions, until all amounts in default and all interest
accumulated thereon have been paid in full by the Defaulting Limited
Partner;
ii.
charge the Defaulting Limited Partner interest at the rate to be
provided in such Limited Partnership Agreement on the defaulting
amount;
iii.
force the redemption or sale by the Defaulting Limited Partner of its LP
Units at a price to be discounted at the rate provided in the Limited
Partnership Agreement (with the proceeds of any such sale or
redemption being applied first to the payment of all default amount);
and
iv.
exercise any other remedy available under applicable law

In the event that the North American Fund or any of its subsidiaries fail to
make any portion of a capital contribution resulting solely from a default of a
special partner of the North American Fund to make a payment required, the
North American Fund shall not be considered to be in default or otherwise be a
Defaulting Limited Partner so long as the North American Fund takes all
necessary action to cure such failure and to make a capital contribution
corresponding to the Default Amount as soon as possible.

The Canadian General Partner will, from time to time in respect of periods of
activity, determine distributions to be made to the Limited Partners of the
Canadian Fund.

Regardless of when any Limited Partner’s Capital Commitment is drawn down,
each Limited Partner will be entitled, pro rata with the other Limited Partners
based on the number of LP Units held by all Limited Partners, to all
distributions made by the Canadian Fund, regardless of which Portfolio
Investment such distribution relates to (and regardless of the date on which
such Portfolio Investment was made), subject to exceptions set forth in the
Limited Partnership Agreement of the Canadian Fund (including with respect
to defaults and Limited Partners excluded from certain Portfolio Investments).

The Canadian General Partner will be entitled to withhold from any
distributions amounts necessary to, as determined in its sole discretion,
satisfy, or create reasonable reserves for working capital, fees and expenses
(including, without limitation, the Commitment Fee, the Management Fee and
all expenses reimbursable to the Canadian General Partner or the Canadian
Manager) and liabilities of the Canadian Fund, as well as for any required tax
withholdings, as determined in its sole discretion. The Canadian General
Partner expects to distribute the majority of the cash available for distribution
and not to retain significant cash balances in excess of prudent operational
and capital reserves, excluding all cash flows generated indirectly to the
Canadian Fund by the refinancing of any Portfolio Investment and all capital
proceeds resulting from the sale, alienation or transfer of any part or interest in
a Portfolio Investment or a Portfolio Entity. Distributions may only take the form
of cash.

Subject to the prior payment of certain amounts to the Canadian General
Partner from distributions that would otherwise be distributed to Limited
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Section 6.0 – Summary of Principal Terms
Partners as described under “Removal and Resignation of the General
Partner” below and such exceptions as are set forth in the Limited Partnership
Agreement of the Canadian Fund (including with respect to defaults and
Limited Partner exclusions from Portfolio Investments), all amounts distributed
by the Canadian Fund will be distributed to the Limited Partners and the
Canadian General Partner, pro rata their interest in the Canadian Fund.
Offering and
Organizational
Expenses

The Canadian Fund will bear all costs, disbursements, fees and expenses it
incurs, including, without limitation, all expenses and fees incurred in
connection with the preparation and filing of its organizing documents, and the
offering, sale and issuance of the Canadian LP Units. The costs,
disbursements and fees to be assumed by the Canadian Fund will include,
without limitation, any travel and accommodation expenses and expenses
incurred in connection with the preparation of any offering memorandum
(including fees and expenses of legal and tax counsel), any subscription
materials and any other agreements or documents relating to the offering of
the Canadian LP Units, and costs and expenses (collectively, the “Offering
and Organizational Expenses”).
Organizational
Cost-Sharing
Contribution

Within ten (10) calendar days from the acceptance of its Capital Commitment,
each Limited Partner will pay an organizational cost-sharing contribution (the
“Organizational Cost-Sharing Contribution”) to the Canadian Fund equal to
0.3% of the amount of such Capital Commitment. The Organizational CostSharing Contribution will be used to reimburse the Canadian General Partner
and the Canadian Manager for (i) the Offering and Organizational Expenses
assumed by them (as defined and as further discussed under the heading
“Offering and Organizational Expenses”) relating to the Canadian Fund and
(ii) the costs and expenses associated with the completion of such Limited
Partner’s Capital Commitment. The balance of such Organizational CostSharing Contribution will be kept by the Canadian Fund for general partnership
purposes.
Commitment
Fee and
Management
Fee

Each Limited Partner will in respect of each Capital Commitment, pay to the
Canadian Fund, which will repay such amount to the Canadian Manager as
consideration for the advisory services rendered by it, an annual commitment
fee (the “Commitment Fee”) as follows:
o From the Acceptance Date of such Limited Partner’s Capital
Commitment until the first anniversary date of such Acceptance
Date, the Commitment Fee shall be equal to 0.75% of the then
Undrawn Capital Commitment of such Limited Partner.
o
Payment of
Commitment
Fee and
Management
Fee
From the first anniversary date of the Acceptance Date of such
Limited Partner’s Capital Commitment until the second
anniversary date of such Acceptance Date, the Commitment Fee
shall be equal to 0.50% of the then Undrawn Capital Commitment
of such Limited Partner.

The Manager charges a Management Fee to Limited Partners ranging from
1.45% to 0.75%, varying in relation to the amount of the Capital Commitment
made and the passage of time (the “Management Fee”).

The Commitment Fee and Management Fee will be payable quarterly in
advance on the first business day of each January, April, July and October.
The Commitment Fee and the Management Fee will be adjusted prior to each
payment date to reflect the difference between the Commitment Fee and
Management Fee actually paid for the previous quarter and the amount of the
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Section 6.0 – Summary of Principal Terms
Commitment Fee and Management Fee that should have been paid for such
previous quarter taking into account the Drawdown on Capital Commitments
made in the course of such previous quarter.
th
th

On each of the 10 and 11 anniversary of their Capital Commitment and as of
th
the later of the calendar year during which the 12 anniversary of its Capital
Commitment occurs and the calendar year during which the distributions
actually received by it shall be at least equal to the capital contributions made
pursuant to such Capital Commitment occurs, a Limited Partner will pay to the
Canadian General Partner an annual portion of an “Incentive Fee” based on a
hypothetical liquidation of all Portfolio Investments on each such anniversary
date at their NAV (the “Incentive Fee”). The annual portion of such Incentive
Fee will be equal to one third of the Incentive Fee calculated for each such
anniversary date using actual and deemed distributions, by notionally
allocating such amounts between the Limited Partner and the Canadian
General Partner as follows:
i.
first, 100% to the Limited Partner until the cumulative amount
distributed to the Limited Partner is equal to the aggregate amount of
all capital contributions made by the Limited Partner at or prior to the
time of such distribution;
ii.
second, 100% to the Limited Partner until the cumulative amount
distributed to the Limited Partner would provide the Limited Partner
with an IRR of 8% on their capital contribution;
iii.
third, 50% retained by the Limited Partner and 50% distributed to the
Canadian General Partner until the cumulative amount distributed to
the Canadian General Partner is equal to 15% of the aggregate of all
amounts distributed to, and retained by the Limited Partner under
paragraph (ii) above and this paragraph (iii); and
iv.
thereafter, 85% to the Limited Partner and 15% to the Canadian
General Partner.

Allocations to the Canadian General Partner pursuant to paragraphs (iii) and
(iv) are together referred to as the “Incentive Fee” and one third of the amount
so calculated will be paid to the Canadian General Partner as of each
Incentive Fee payment date.

Should any Limited Partner exercise its right to have any of its LP Units
redeemed before the payment in full of the Incentive Fee, the Incentive Fee (or
the balance thereof) will be determined as at the date of redemption (taking
into account the applicable Redemption Discount) and paid out using
redemption proceeds.

In the event the Fund is wound-up before the payment in full of the Incentive
Fee, the Incentive Fee payable will be determined as at that date and paid out
using wind-up proceeds.
GST/HST and
QST

All applicable goods and services tax/ harmonized sales tax and Québec sales
tax will be added to the fees and expenses payable by the Canadian Fund to
the Canadian General Partner, including the Management Fee, the
Commitment Fee, the Offering and Organizational Expenses and the Fund
expenses.
Asset
Management

The Canadian General Partner may provide, directly or through an affiliate
(including the Canadian Manager), to any person in which it holds Portfolio
Investments, asset or project management services, provided that the
Canadian General Partner, or its affiliate, as the case may be, may receive
Incentive Fee
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Section 6.0 – Summary of Principal Terms
fees for the provisions or arrangement thereof only on terms no less
favourable to such person than would be obtained on an arm's-length basis.
All such fees paid by such person (excluding the portion of such fees that
constitute the recovery of costs incurred by the Canadian General Partner, or
its affiliates, as the case may be, to provide such services and related
expenses, including, without limitation, in connection with costs incurred in
respect of the services of personnel of the Canadian General Partner
dedicated to a particular Portfolio Investment) that are received by the
Canadian General Partner (or any of its affiliates including the Canadian
Manager) will be applied to prospectively reduce the Management Fee
otherwise payable in respect of the Canadian Fund.
Dealings
between the
Fund, the
General Partner
and the Manager

Except as expressly contemplated in the Limited Partnership Agreement of the
Canadian Fund or in the Management Services Agreement, all dealings
between the Canadian Fund, its General Partner and its Manager will be
performed on an arm’s length basis.
Key Persons

The ability of the Canadian Fund to make new Portfolio Investments will be
th
suspended if (i) before the tenth (10 ) anniversary date of the first Vintage, Mr.
Pierre Anctil or both Messrs. Stéphane Mailhot and Juan Caceres of (ii)
thereafter, any two of Messrs. Pierre Anctil, Stéphane Mailhot and Juan
Caceres, cease to be actively involved with the Canadian Manager and to
spend a sufficient portion of their working time attending to the business of the
Canadian Fund and as necessary to meet the Investment Objective of the
Fund (a “Key Person Event”); provided that the Canadian Fund will be
permitted to transact any investment transaction in progress as of the date of
such Key Person Event occurred or to make any follow-on investments in
existing Portfolio Entity for the purpose of protecting an existing Portfolio
Investment.

The suspension of new investments will remain in effect following a Key
Person Event until (i) the Canadian General Partner has nominated suitably
qualified replacements that have been approved in accordance with the
Limited Partnership Agreement, (ii) the Limited Partners and holders of Feeder
Partnership Special Voting Interests of the Canadian Fund, by Extraordinary
Resolution, elect to remove and replace the Canadian General Partner or (iii)
the Limited Partners and holders of Feeder Partnership Special Voting
Interests of the Canadian Fund, by Majority Resolution (as defined herein),
vote to restore the ability of the Canadian Fund to make investments.

If the Canadian General Partner is found to have engaged in certain disabling
conduct, Limited Partners of the Canadian Fund may by Majority Resolution
elect to remove the General Partner of the Canadian Fund.

Limited Partners of the Canadian Fund may elect, by Extraordinary Resolution
without having to demonstrate “cause”, to remove the Canadian General
Partner.

Except as permitted by Limited Partners of the Canadian Fund by Special
Resolution, the Canadian General Partner will not be entitled to resign as
general partner of the Canadian Fund.

Upon the Canadian General Partner being removed as general partner, the
Limited Partners shall pay to the Fund, on a pro rata basis based on their
respective Capital Commitments, and the Fund shall then pay to the removed
Canadian General Partner, an Incentive Fee calculated (as described under
the heading “Incentive Fee”) as of such date.
“For cause” and
“no fault”
Removal and
Resignation of
the General
Partner of a
Fund
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Section 6.0 – Summary of Principal Terms
Valuation
Amendments

The General Partners of the North American Fund, the Canadian Fund and the
US Fund, will each year, in accordance with procedure outlined in the Limited
Partnership Agreement, appoint a partner of the corporate finance group of an
independent accounting firm other than the accounting firm appointed as the
auditors of the Fund (the “Independent Valuator”). The Independent Valuator
shall review the fair market valuation of the NAV of the US Fund, the Canadian
Fund and the North American Fund as of June 30 of such year calculated and
reported by their respective general partner and manager using a methodology
that shall have been approved in accordance with the Limited Partnership
Agreement, and shall, prior to September 30 of such year, provide an
independent valuation report addressed to the Limited Partners confirming
whether the said valuation is acceptable as result of being within a range of
acceptable values. The Independent Valuator of the Canadian Fund shall be
the same person as the independent valuator of the North American Fund and
the US Fund.

Should the NAV of the Canadian Fund, as reported by the Canadian General
Partner and the Canadian Manager be contested by any party so entitled
under the Limited Partnership Agreement, the Canadian General Partner shall
appoint, upon the recommendation of said party, a partner of the corporate
finance group of an independent accounting firm other than the accounting firm
appointed as auditors of the Fund and other also than the accounting firm of
which the Independent Valuator is a partner, to perform a second valuation of
such NAV (the “Second Independent Valuator”). Further to the situation
described above, the aggregate NAV of the Canadian Fund will be equal to
arithmetic average of (i) the midpoint of the range of values of such NAV as
determined by the Independent Valuator and (ii) the midpoint of the range of
values of such NAV as determined by the Second Independent Valuator, and
shall be final and binding on all parties.

The NAV per LP Unit will be determined based on the most recent available
valuation of the Canadian Fund plus an interest thereon at an annual rate of
8% accrued from the date of such valuation (or any revised rate as approved
in accordance with the Limited Partnership Agreement of the Canadian Fund).
The Canadian General Partner will be entitled to adjust the NAV per LP Unit to
reflect any material event that occurred in connection with a Portfolio
Investment since the most recent valuation, provided that if such adjustment is
higher than 2% it shall obtain all approvals required under the Limited
Partnership Agreement.

The Limited Partnership Agreement of the Canadian Fund will set forth certain
procedures for its amendment, generally with the consent of the Canadian
General Partner and the consent of the Limited Partners and holders of Feeder
Partnership Special Voting Interests of the Canadian Fund by Special
Resolution to the extent such amendment does not affect the distributions or
increase any financial obligation or liability as Limited Partner beyond that
contemplated in the Limited Partnership Agreement of the Canadian Fund.

The Limited Partnership Agreement will also include customary provisions
allowing the Canadian General Partner to make certain amendments to the
Limited Partnership Agreement without the consent of the Limited Partners or
holders of Feeder Partnership Special Voting Interests in order to, amongst
other things, (i) reflect the admission of one or more additional special partners
or any transfer of LP Units, (ii) change the name of the Canadian Fund, (iii)
satisfy any applicable law, (iv) execute an updated version of the Limited
Partnership Agreement updating and incorporating any previous replacements,
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Section 6.0 – Summary of Principal Terms
additions and other amendments, and generally, (v) in a manner that has no
material adverse effect on any Limited Partner or holder of Feeder Partnership
Special Voting Interests or that benefits all Limited Partners and holders of
Feeder Partnership Special Voting Interests.

The Canadian Fund will be dissolved:
i.
if the Canadian General Partner determines that changes in any law
would be materially burdensome to the Canadian Fund;
ii.
a judicial decree of dissolution has been obtained;
iii.
if Limited Partners of the Canadian Fund determine by Extraordinary
Resolution that the Canadian Fund will be dissolved, provided that at
least five (5) years have elapsed since the creation of the Canadian
Fund; or
iv.
in the circumstances described under the heading “Redemption Right”.

The General Partner of the Canadian Fund will act as liquidator of the
Canadian Fund, and will proceed to the orderly winding-up of its affairs and will
be granted a period of at least three years to complete such winding-up..
Exculpation and
Indemnification

None of the Canadian General Partner, the Canadian Manager and their
respective affiliates, or the directors, officers, partners, members, employees
or agents of each of them (each a “Covered Person”) will be liable to the
Canadian Fund or to the Limited Partners for any good faith act or omission of
such Person, except for any such act or omission constituting gross fault,
intentional fault or fraud by such Covered Person. The Canadian Fund will
indemnify each Covered Person against all claims, damages, liabilities, costs
and expenses to which they may be or become subject by reason of their
activities on behalf of the Canadian Fund, except to the extent that such
claims, damages, liabilities, costs or expenses are determined to have resulted
from such Person's own gross fault, intentional fault or fraud or other disabling
conduct as described in more detail in the Limited Partnership Agreement of
the Canadian Fund.
Confidentiality

Subject to certain exceptions, no Limited Partner of the Canadian Fund will
disclose to any Person any information related to the Canadian General
Partner, the Canadian Fund, any Portfolio Investment or proposed Portfolio
Investment or any of their respective affiliates, in each case, that is not publicly
available, provided that a Limited Partner may disclose any such information (i)
to the extent required pursuant to any law or regulation or pursuant to any rule
or policy of a stock exchange on which securities of such Limited Partner are
listed for trading, (ii) to directors, officers, employees and legal, financial and
tax advisors of such Limited Partner, so long as such disclosure is for a bona
fide business purpose of such Limited Partner and any such recipient is
informed of the confidential nature of the information.
Fund Currency

The reference currency of the Canadian Fund will be the Canadian dollar.
Risk Factors and
Potential
Conflicts of
Interest

There can be no assurance that the Canadian Fund’s investment objective will
be achieved, or that an Limited Partner will receive a return of its capital. An
investment in the Canadian Fund involves significant risks and potential
conflicts of interest. For a more detailed discussion of risks and conflicts of
interests applicable to an investment in the Canadian Fund, please refer to
Section 7.0 entitled “Certain Risk Factors”.
Governing Law

The Limited Partnership Agreement of the Canadian Fund will be governed by
Dissolution
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Section 6.0 – Summary of Principal Terms
and construed in accordance with the laws of the Province of Québec and the
federal laws of Canada applicable therein.
6.3
Fiera Axium Infrastructure US LP
The Fund

Fiera Axium Infrastructure US LP, a Delaware limited partnership (the ”US
Fund”, or in this table, the “Fund”).
Fund Structure

Open-ended limited partnership established for purposes of completing and
holding investments in US assets. Limited Partners electing to invest in the
Fund may do so through capital commitments to such Fund (each a “Capital
Commitment”).

Tax-exempt Limited Partners may want to form a wholly owned U.S. corporation
to make their investments in the US Fund to accommodate certain tax or
regulatory concerns, including minimizing their recognition of unrelated business
taxable income. Tax-exempt Limited Partners should consult their own tax
advisors concerning the implications of investing in the US Fund.

Fiera Axium Infrastructure US Partner LLC (the “US General Partner”), a
Delaware limited liability company, and a subsidiary of Fiera Axium
Infrastructure US Inc. (the “US Manager”), acts as general partner of the US
Fund.

The US General Partner (acting directly or through its duly appointed agents
(including the US Manager)) will be vested with full, exclusive and complete
right, power and discretion to operate and conduct the affairs of the US Fund.

The US General Partner will have unlimited liability for the debts, liabilities and
obligations of the US Fund, in accordance with applicable law.

Pursuant to the terms of a Management Services Agreement, the US General
Partner has delegated to the US Manager all or substantially all of its
management and administrative services, and in connection with such
delegation, the US Manager is entitled to bind the US Fund as attorney-in-fact
for the US General Partner.
Manager

Fiera Axium Infrastructure US Inc., a corporation incorporated under the laws of
the State of Delaware, and a subsidiary of Fiera Axium Infrastructure Inc., is the
manager of the US Fund and provides day-to-day management services to the
US Fund and, in such capacity, acts as agent for the US General Partner.
Fund Objective

The US Fund’s objective is to generate attractive risk-adjusted returns primarily
through equity, quasi equity, convertible and subordinated debt and equityrelated investments in Infrastructure Assets (as herein defined) located in the
U.S., and to engage in such activities that are incidental to such objective.

The US Fund seeks to invest in core Infrastructure Assets (as herein defined).

As used herein, “Infrastructure Assets” means assets or businesses and
companies related to the transportation, energy and social infrastructure subsectors, including, without limitation:
i.
transportation assets, including without limitation roads, tunnels,
bridges, air and sea ports and mass transit systems;
ii.
energy infrastructure assets, including without limitation power
generation, transmission and distribution systems, pipelines and gas
collection and distribution systems; and
General
Partner
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Section 6.0 – Summary of Principal Terms
iii.
Investment
Policy
social assets, including without limitation hospitals and other medical
care facilities, schools, courthouses and other institutional buildings.

The US Fund will target an internal rate of return (“IRR”) to Limited Partners (as
herein defined) of 9% to 12%, after payment of all management fees, incentive
fees and fund expenses. There is no assurance that the US Fund’s target
IRR will be achieved and actual returns to Limited Partners may be
materially different than the returns being targeted.

Any change to the objective of the US Fund will require the adoption of a
unanimous resolution of the Limited Partners and the holders of Feeder
Partnership Special Voting Interests (as hereinafter defined).

The US Fund will observe the following guidelines:
i.
no investment will be made in assets other than assets located in the
US and its territories (provided that the US Fund shall be entitled to
invest in an asset located in part in the United States and in part in
Canada so long as such investment does not result in the US Fund
having a “permanent establishment”, a “fixed place of business” or
equivalent taxable nexus in any jurisdiction other than the United
States;
ii.
no more than the greater of either (i) 20% of total aggregate Capital
Commitments or (ii) US$75 million will be invested in a single project;
iii.
at any given time, no more than 40% of total aggregate Capital
Commitments will be invested in greenfield portfolio investments; it
being understood that upon a greenfield portfolio investment having
been commissioned and generating operating cash flows, it will cease
to be considered as a greenfield portfolio investment for the purposes
hereof and will thereupon become an operating portfolio investment;
iv.
no investment will be made in projects considered to be non
environmentally-friendly by the US General Partner;
v.
no investment will be made in projects that the US General Partner
considers to incorporate technological risk components;
vi.
no investment will be made in Infrastructure Assets whose shares or
other equity ownership interests are publicly traded after the time the
investment is made, unless such shares or other equity interests will
cease to be publicly traded as a result of such investment; and
vii.
no investment will be made in senior debt securities.

The US Fund will only invest in projects whose management demonstrates, in
the US General Partner’s opinion, a principle of strong and healthy labour
relations with their employees and whose management and, to the extent
employees are unionized, labour unions, in the US General Partner’s opinion,
work respectfully with each other in balancing the appropriate needs of both
constituencies. Further, the US Fund will not invest in projects considered by the
US General Partner not to have good relations with their employees or which do
not, in the opinion of the US General Partner, support fair wage and
employment practices. Furthermore, in respect of proposed greenfield portfolio
investments, the US Fund will only invest in projects where it is expected that
the management thereof will not purposely or actively exclude unionized
employees and in respect of a proposed already operating portfolio investment
that the management thereof will not purposely or actively reduce the number of
unionized employees.

The Principles of Responsible Investment published by the Secretariat of the
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107
Section 6.0 – Summary of Principal Terms
Principles for Responsible Investment Initiative, as amended from time to time
(“PRI”), will be used by the US Fund for guidance purposes in complying with
the terms of the US Fund Investment Policy.
Feeder
Partnership
Special Voting
Interests

Each of the special partners of the North American Fund will be issued, with
respect to each LP Unit of the North American Fund it holds, a number of
special voting interests (each a “Feeder Partnership Special Voting Interest”)
representing its indirect interest in the US Fund for purpose of providing such
special partners direct voting rights with respect to the US Fund.
Manager
Commitment

The US Manager will, for each Vintage, commit to invest in the capital of the US
Fund, directly or through an affiliate, an amount such that it shall have at all
times (with its affiliates) an aggregate Capital Commitment to the US Fund
equal to at least 1% of the total aggregate outstanding Capital Commitments
made by all Limited Partners (other than the North American Fund or its
subsidiaries) to the US Fund (the “Manager Commitment”), in the aggregate.
Fund Term

The US Fund will have an indefinite term (the “Term”) and will be authorized to
accept additional Capital Commitments indefinitely (subject to the rights of the
Limited Partners set forth under the heading “Reduced Term” below).

Upon having reached a threshold of US$1,000,000,000 of aggregate Capital
Commitments, the US Fund shall require the adoption of a Majority Resolution
to accept further Capital Commitments and upon having reached a threshold of
US$1,500,000,000 of aggregate Capital Commitments, the Fund shall require
the adoption of a Special Resolution to accept further Capital Commitments.

Notwithstanding the foregoing, the Limited Partners of the US Fund and holders
of Feeder Partnership Special Voting Interests of the US Fund, may after the
th
fifth (5 ) anniversary date of the initial closing:
a. by a resolution passed by at least two (2) holders of US LP Units and/or
holders of Feeder Partnership Special Voting Interests of the US Fund
holding at least sixty-six and two-thirds percent (66⅔%) of all
outstanding US LP Units and Feeder Partnership Special Voting
Interests (“Special Resolution”), cause the US Fund to cease to accept
new Capital Commitments and, in such case, (1) the US General
Partner will thereafter cease to accept new Capital Commitments, and
(2) the Limited Partners of the US Fund will be deemed to have waived
any right to any investment opportunities presented to the US Fund
subsequent to the date of such Special Resolution and in connection
with any follow-on investments on existing Portfolio Investments); and
b. by a resolution passed by at least two (2) holders of US LP Units and
holders of Feeder Partnership Special Voting Interests of the US Fund
holding more than seventy-five percent (75%) of all outstanding US LP
Units and Feeder Partnership Special Voting Interests (“Extraordinary
Resolution”), to fix an end date to the Term of the US Fund. Further to
such Extraordinary Resolution having been passed, the end date of the
Term of the US Fund will be a date set forth in such resolution, but no
rd
sooner than the third (3 ) anniversary date of the date on which the
resolution shall have been passed. At the expiry of such Term, the US
General Partner will have the option, in its absolute discretion, to extend
the Term of the US Fund for an additional period of one (1) year, and,
with the approval by a resolution approved by more than 50% of the
votes cast by least two (2) holders of LP Units and/or holders of Feeder
Partnership Special Voting Interests (“Majority Resolution”), for a
Reduced Term
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Section 6.0 – Summary of Principal Terms
further period of one (1) year; provided that, in such case, (1) the US
General Partner will thereafter cease to accept Redemption Requests
and shall have no obligation to honour any prior Redemption Requests
and (2) the Limited Partners of the US Fund will be deemed to have
waived any right to any investment opportunities presented to the US
Fund subsequent to the date of such Special Resolution and in
connection with any follow-on investments in existing Portfolio
Investments.

The holders of US LP Units and of Feeder Partnership Special Voting Interests
may, by Special Resolution, elect to terminate the right of the US General
Partner to complete additional Portfolio Investments.
Acceptance of
Capital
Commitments

The US General Partner generally intends to accept Capital Commitments to
the US Fund on a semi-annual basis, in its sole discretion, as applicable, each
date at which Capital Commitments shall have been accepted by the US
General Partner, being an “Acceptance Date”.
Drawdown of
Capital
Commitments

The US General Partner will only drawdown Capital Commitments from those
Limited Partners who have an unpaid outstanding Capital Commitment (an
“Undrawn Capital Commitment”) on a pro rata basis based on the amount of
the respective Capital Commitments made by each such Limited Partner to the
US Fund, giving priority to earlier Vintages in a manner fully described in the
Limited Partnership Agreement.

The US General Partner will provide no less than ten (10) business days’ prior
written notice of any drawdown of Undrawn Capital Commitments to the US
Fund’s Limited Partners.

Capital Commitments made to the US Fund will be drawn down to make
Portfolio Investments, for working capital purposes, to pay Fund expenses, to
redeem US LP Units being the object of a Redemption Request (as defined
below) or for any other purpose which the US General Partner reasonably
determines.

As of any date, each Limited Partner of the US Fund will hold an interest in the
US Fund representing its pro rata share of the NAV of the US Fund, based on
the number of US LP Units it holds at such time, over the total outstanding US
LP Units of at such time, irrespective the date or dates on which it will acquire its
respective US LP Units and irrespective of its total Capital Commitment.

The US Fund may provide guarantees, security, surety, bonds, letters of credit
or other kind of support to any third party (directly or indirectly) in order to
secure any bid or proposal that the US Fund will submit to such third party in
connection with the US Fund’s participation in any bidding process.

The US Fund may borrow by drawing on lines of credits or incur other forms of
indebtedness and use the proceeds of any such borrowing for the US Fund’s
business; provided that the outstanding amount of all such borrowings (and the
outstanding amount of all of the guarantees mentioned in the paragraph above)
by the US Fund will at no time exceed 20% of total Capital Commitments to the
US Fund (excluding for purposes of such test: contingent funding commitments,
guarantees of Portfolio Entity (as defined below) obligations (provided that
recourse is limited to the relevant Portfolio Investment) and trade credit in the
ordinary course of business).

The Undrawn Capital Commitments of a Limited Partner of the US Fund will be
increased by the amount of capital returned to such Limited Partner within
Credit Support
Recycling of
Capital
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Section 6.0 – Summary of Principal Terms
twelve (12) months of having been drawn down originally.
Limited
Partners
Transfer of
Limited
Partnership
Interest
Redemption
Right

Each investor investing directly in the US Fund becomes a limited partner of the
US Fund upon making a Capital Commitment (a “Limited Partner” and,
collectively with the other limited partners in the US Fund, the “Limited
Partners”) and remains a Limited Partner as long as it has a Capital
Commitment or LP Unit outstanding.

The Limited Partners shall not take part in the administration of the US Fund nor
shall they transact any business for the US Fund, nor shall they have the power
to act or bind the US Fund, said powers being vested solely in the US General
Partner.

The liability of each Limited Partner for the debts, liabilities and obligations of
the US Fund will be limited to the amount of its Undrawn Capital Commitment,
plus its percentage of the undistributed NAV of the US Fund.

No Limited Partner of the US Fund will have priority over any other Limited
Partner of the US Fund, either as to the return of the amount of its capital
contribution or as to any allocation of income, gain, loss, deduction or credit.

Except as discussed under the heading “Redemption Right”, no Limited Partner
will have the right to withdraw capital contributed to the US Fund. Except as
discussed under the heading “Commitment and Subscription Procedure”, no
Limited Partner will be entitled to withdraw or cancel any Capital Commitment
made to the US Fund prior to such Capital Commitment being drawn down by
the US General Partner.

Subject to a Limited Partner’s Redemption Right, no Limited Partner will be
permitted to withdraw from the US Fund prior to its dissolution.

Except as otherwise permitted under the Limited Partnership Agreement of the
US Fund, no Limited Partner will be entitled to sell, exchange, assign,
encumber, alienate or otherwise transfer (a “Transfer”) all or any portion of its
Capital Commitment (collectively, a “Limited Partner Interest”) without the prior
written consent of the US General Partner and upon compliance with certain
requirements set forth in the Limited Partnership Agreement of the US Fund. A
Limited Partner that requests a transfer of its Limited Partner Interest (in whole
or part) shall reimburse the US Fund and US General Partner for any out-ofpocket expense incurred in connection with considering such request, including
attorney costs.

Notwithstanding the foregoing, (i) transfers of LP Units between Limited
Partners or affiliates of Limited Partners will, subject to certain specific
conditions, be permitted and (ii) the US General Partner will not unreasonably
withhold its approval to the transfer of Limited Partner Interests by a Limited
Partner.

At any time, a Limited Partner may, by submitting a written redemption request
in the form prescribed by the US General Partner (a “Redemption Request”)
during the applicable period (the “Redemption Notice Period”), request that on
the next redemption date determined by the US General Partner (the
“Redemption Date”) all or a portion of its US LP Units be redeemed by the US
Fund. In order to be provided with sufficient funds to proceed to the redemption
of the US LP Units being the object of Redemption Requests, the US General
Partner will be entitled to first draw down on Capital Commitments not fully
drawn down, in accordance with the process discussed under the heading
“Drawdown of Capital Commitments”. The US General Partner will determine
the date upon which each Redemption Date will occur, in its discretion. The US
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Section 6.0 – Summary of Principal Terms
General Partner will be entitled at any time, but will not be required, to make a
capital call on the existing Undrawn Capital Commitments in order to pay the
redemption price for any US LP Units to be redeemed, in its discretion.

The exercise of a Redemption Right by a Limited Partner will not have any
impact on its outstanding Undrawn Capital Commitment. However, the amount
of such Limited Partner’s aggregate Capital Commitment will be reduced by the
amount of the proceeds received by the Limited Partner as a result of such
redemption.

If the aggregate amount of all Redemption Requests for US LP Units of the US
Fund requested to be redeemed on a Redemption Date plus all US LP Units
that have already been redeemed within the same calendar year represents an
amount that exceeds 20% of the NAV of the US Fund, the US Fund shall
honour Redemption Requests made during the Redemption Notice Period
related to such Redemption Date, on a pro rata basis (provided that any
Redemption Request made during a previous Redemption Notice Period and
queued as described below shall be honoured in full prior to the US Fund
honouring any Redemption Request made during a subsequent Redemption
Notice Period) up to an amount such that the aggregate amount of US LP Units
redeemed within that calendar year shall be equal to 20% of the NAV of the US
Fund on such Redemption Date (or such greater percentage determined by the
US General Partner and Limited Partners with the approval of the Limited
Partners and holders of Feeder Partnership Special Voting Interests by Special
Resolution), and will establish a redemption queue in respect of those US LP
Units included in all such Redemption Requests that have not been redeemed
on such Redemption Date. The US Fund will also in other specific
circumstances provided in the relevant Limited Partnership Agreement be
entitled not to redeem any of the US LP Units until such circumstances no
longer exist. No interest shall accrue on any amounts during the deferral of the
payment of any Redemption Requests, and the value of such holdings will
remain at the risk of the business of the US Fund until redeemed.

For any Redemption Requests presented during a Redemption Notice Period
that have not yet been redeemed, the US General Partner will, for the five (5)
years following the Redemption Notice Period, continue to make efforts to effect
the Redemption Requests by notably allocating the distributions that would
otherwise have been made to the Limited Partners of the US Fund following that
first anniversary date to the payment of the redemption price for the redemption
of such US LP Units not yet redeemed and using commercially reasonable
efforts to sell, otherwise dispose or monetize future income of Portfolio
Investments of such Fund to generate proceeds sufficient to redeem all
remaining US LP Units included in such Redemption Requests.

If on the third (3 ) anniversary date of the last day of a Redemption Notice
Period related to a Redemption Notice tendered prior to November 29, 2020,
there remain US LP Units that were included in Redemption Requests
presented during such Redemption Notice Period that still have not been
redeemed, the Limited Partners who presented such Redemption Requests will
be entitled to require the US General Partner to call a special meeting of the
Limited Partners of the US Fund and of the holders of the Feeder Partnership
Special Voting Interests, to vote on a resolution to wind-up and liquidate the US
Fund. A decision to wind-up and liquidate the US Fund will require the adoption
of a Special Resolution of the Limited Partners and the holders of the Feeder
rd
Partnership Special Voting Interests, voting together. If on the third (3 )
anniversary date of the last date of a Redemption Notice Period related to a
Redemption Notice tendered on or after November 29, 2020, there remain LP
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Section 6.0 – Summary of Principal Terms
Units that were properly tendered for redemption during such Redemption
Notice Period that have not yet been redeemed, an Extraordinary Partnership
th
Resolution electing to fix an end date of the term on the sixth (6 ) anniversary
date of the last day of such Redemption Notice Period shall be deemed to have
been passed and adopted, subject to certain exceptions provided in the Limited
Partnership Agreement.
Redemption
Discount
th

If, on the fourth (4 ) anniversary date of the last day of a Redemption Notice
Period related to a Redemption Notice tendered prior to November 29, 2020,
there remain US LP Units that were included in Redemption Requests
presented during such Redemption Notice Period that still have not been
redeemed, the Redeeming Partners that have properly tendered such US LP
Units for redemption shall be entitled to require the US General Partner to call a
Fund Meeting to vote on a Majority Resolution to wind-up and liquidate the US
Fund. If such Majority Resolution is adopted, the US General Partner shall
proceed to the winding-up and liquidation of the US Fund.

If, on the fifth (5 ) anniversary date of the last day of a Redemption Notice
Period related to a Redemption Notice tendered prior to November 29, 2020
(the “Redemption Deadline”), there remain US LP Units that were included in
Redemption Requests presented during such Redemption Notice Period that
still have not been redeemed, an Extraordinary Resolution electing to fix an end
rd
date of the Term on the third (3 ) anniversary date of such Redemption
Deadline shall be deemed to have been passed and adopted.

The redemption of each US LP Unit will be based on the NAV per Unit as at the
Redemption Date on which such US LP Unit is actually redeemed.

The NAV per US LP Unit on each Redemption Date will be calculated in
accordance with the requirements set forth under the heading “Valuation” and
will be subject to the Redemption Discount referred to under the heading
“Redemption Discount”. In the event that a Portfolio Investment was sold or
disposed of or if the future income of such Portfolio Investment was monetized
to generate proceeds to pay, directly or indirectly, for the redemption price of
redeemed US LP Units, the NAV per US LP Unit used to calculate the
redemption price of such redeemed US LP Units will be their NAV per US LP
Unit on a post-sale, post-disposal or post-monetization basis.

If a Redemption Request is received after the expiration of a Redemption Notice
Period, such redemption will be treated as a request made during the next
following Redemption Notice Period. All Redemption Requests will be
irrevocable, subject to the US General Partner’s right, in its absolute discretion,
to permit the revocation of Redemption Requests. The US General Partner will
pay the proceeds of redemption of US LP Units to the relevant Limited Partner
within thirty (30) days following the applicable Redemption Date.

The Fund expenses incurred in connection with the redemption of US LP Units
will be borne, on a pro rata basis, by those Limited Partners whose US LP Units
will have been redeemed, pro rata based on the number of US LP Units so
redeemed, and will be reimbursed by them to the US Fund or withheld from the
redemption proceeds otherwise payable to the Limited Partner whose US LP
Units are being redeemed.

The redemption of LP Units is subject to a redemption discount in the first five
(5) years of their subscription (the “Redemption Discount”). The Redemption
Discount to NAV for LP Units redeemed in the first year will be 7.5%, decreasing
by 1.5% each year thereafter (i.e. 6.0% in year 2, 4.5% in year 3, etc.).
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Section 6.0 – Summary of Principal Terms
Defaults
Distributions

The failure of a Limited Partner that has an Undrawn Capital Commitment to
make a required capital contribution to the US Fund (a “Defaulting Limited
Partner”), after notice of drawdown is provided by the US General Partner, will
be subject to default provisions which will be provided in the Limited Partnership
Agreement of the US Fund.

Pursuant to such default provisions and until all amounts in default and all
interest accumulated thereon have been paid in full by the Defaulting Limited
Partner:
i.
the Defaulting Limited Partner will be deemed to have forfeited certain
rights under the Limited Partnership Agreement of the US Fund,
including the right to vote on matters requiring the consent of Limited
Partners and the right to request that its LP Units be redeemed as
discussed under the heading “Redemption Rights”; and
ii.
all amounts otherwise distributable to such Defaulting Limited Partner
will be applied in satisfaction of all amounts payable by such Defaulting
Limited Partner.

In addition, the US General Partner will, in its absolute discretion and without
limitation, inter alia, be entitled to take any of the following actions with respect
to a Defaulting Limited Partner, which rights will be cumulative and nonexclusive:
i.
remove the right of the Defaulting Limited Partner to make further
capital contributions, until all amounts in default and all interest
accumulated thereon have been paid in full by the Defaulting Limited
Partner;
ii.
charge the Defaulting Limited Partner interest at the rate to be provided
in such Limited Partnership Agreement on the defaulting amount;
iii.
force the redemption or sale by the Defaulting Limited Partner of its US
LP Units at a price to be discounted at the rate provided in the Limited
Partnership Agreement of the US Fund (with the proceeds of any such
sale or redemption being applied first to the payment of all default
amount); and
iv.
exercise any other remedy available under applicable law.

In the event that the North American Fund or any of its subsidiaries fail to make
any portion of a capital contribution resulting solely from a default of a special
partner of the North American Fund to make a payment required, the North
American Fund or any such subsidiary shall not be considered to be in default
or otherwise be a Defaulting Limited Partner so long as the North American
Fund takes all necessary action to cure such failure and to make a capital
contribution corresponding to the Default Amount as soon as possible.

The US General Partner will, from time to time in respect of periods of activity,
determine distributions to be made to the Limited Partners of the US Fund.

Regardless of when any Limited Partner’s Capital Commitment is drawn down,
each Limited Partner will be entitled, pro rata with the other Limited Partners
based on the number of US LP Units held by all Limited Partners, to all
distributions made by the US Fund, regardless of which Portfolio Investment
such distribution relates to (and regardless of the date on which such Portfolio
Investment was made), subject to exceptions set forth in the Limited Partnership
Agreement of the US Fund (including with respect to defaults and Limited
Partner excluded from certain Portfolio Investments).

The US General Partner will be entitled to withhold from any distributions
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Section 6.0 – Summary of Principal Terms
amounts necessary to, as determined in its sole discretion, satisfy, or create
reasonable reserves for working capital, fees and expenses (including, without
limitation, the Management Fee and all expenses reimbursable to the US
General Partner) and liabilities of the US Fund, as well as for any required tax
withholdings, as determined in its sole discretion. The US General Partner
expects to distribute the majority of the cash available for distribution and not to
retain significant cash balances in excess of prudent operational and capital
reserves, excluding all cash flows generated to the US Fund by the refinancing
of any Portfolio Investment and all capital proceeds resulting from the sale,
alienation or transfer of any part or interest in a Portfolio Investment or a
Portfolio Entity.

Subject to the prior payment of certain amounts to the US General Partner from
distributions that would otherwise be distributed to Limited Partners as
described under “Removal and Resignation of the General Partner” below
and such exceptions as are set forth in the Limited Partnership Agreement of
the US Fund (including with respect to defaults and Limited Partner exclusions
from Portfolio Investments), all amounts distributed by the US Fund will be
distributed to the Limited Partners and the US General Partner, pro rata based
upon their US LP Units.
Offering and
Organizational
Expenses

The US Fund will bear all costs, disbursements, fees and expenses it incurs,
including, without limitation, all expenses and fees incurred in connection with
the preparation and filing of its organizing documents, and the offering, sale and
issuance of the US LP Units. The costs, disbursements and fees to be assumed
by the US Fund will include, without limitation, any travel and accommodation
expenses and expenses incurred in connection with the preparation of any
offering memorandum (including fees and expenses of legal and tax counsel),
any subscription materials and any other agreements or documents relating to
the offering of the US LP Units, and costs and expenses (collectively, the
“Offering and Organizational Expenses”).
Organizational
Cost-Sharing
Contribution

Within ten (10) calendar days from the acceptance of its Capital Commitment,
each Limited Partner will pay as an organizational cost-sharing contribution (the
“Organizational Cost-Sharing Contribution”) to the US Fund equal to 0.3% of
the amount of such Capital Commitment. The Organizational Cost-Sharing
Contribution will be used to reimburse the US General Partner and the US
Manager for (i) the Offering and Organizational Expenses assumed by them (as
defined and as further discussed under the heading “Offering and
Organizational Expenses”) relating to the US Fund and (ii) the costs and
expenses associated with the completion of such Limited Partner’s Capital
Commitment. The balance of such Organizational Cost-Sharing Contribution will
be kept by the US Fund for general partnership purposes.
Commitment
Fee and
Management
Fee

Each Limited Partner will in respect of each Capital Commitment, pay to the US
Fund, which will repay such amount to the US Manager as consideration for the
advisory services rendered by it, an annual commitment fee (the “Commitment
Fee”) as follows:
o From the Acceptance Date of such Limited Partner’s Capital
Commitment until the first anniversary date of such Acceptance Date,
the Commitment Fee shall be equal to 0.75% of the then Undrawn
Capital Commitment of such Limited Partner.
o
From the first anniversary date of the Acceptance Date of such Limited
Partner’s Capital Commitment until the second anniversary date of such
Acceptance Date, the Commitment Fee shall be equal to 0.50% of the
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Section 6.0 – Summary of Principal Terms
then Undrawn Capital Commitment of such Limited Partner.

The Manager charges a Management Fee to Limited Partners ranging from
1.45% to 0.75%, varying in relation to the amount of the Capital Commitment
made and the passage of time (the “Management Fee”).
Payment of
Commitment
Fee and
Management
Fee

The Commitment Fee and Management Fee will be payable quarterly in
advance on the first Business Day of January, April, July and October. The
Commitment Fee and the Management Fee will be adjusted prior to each
payment date to reflect the difference between the Commitment Fee and
Management Fee actually paid for the previous quarter and the amount of the
Commitment Fee and Management Fee that should have been paid for such
previous quarter taking into account the Drawdown on Capital Commitments
made in the course of such previous quarter.
Incentive Fee

On each of the 10 and 11 anniversary of their Capital Commitment and as of
th
the later of the calendar year during which the 12 anniversary of its Capital
Commitment occurs and the calendar year during which the distributions
actually received by it shall be at least equal to the capital contributions made
pursuant to such Capital Commitment occurs, a Limited Partner will pay to the
US General Partner an annual portion of an “Incentive Fee” based on a
hypothetical liquidation of all Portfolio Investments on each such anniversary
date at their NAV (the “Incentive Fee”). The annual portion of such Incentive
Fee will be equal to one third of the Incentive Fee calculated for each such
anniversary date using actual and deemed distributions, by notionally allocating
such amounts between the Limited Partner and the US General Partner as
follows:
i.
first, 100% to the Limited Partner until the cumulative amount distributed
to the Limited Partner is equal to the aggregate amount of all capital
contributions made by the Limited Partner at or prior to the time of such
distribution;
ii.
second, 100% to the Limited Partner until the cumulative amount
distributed to the Limited Partner would provide the Limited Partner with
an IRR of 8% on their capital contribution;
iii.
third, 50% retained by the Limited Partner and 50% distributed to the
US General Partner until the cumulative amount distributed to the US
General Partner is equal to 15% of the aggregate of all amounts
distributed to, and retained by the Limited Partner under paragraph (ii)
above and this paragraph (iii); and
iv.
thereafter, 85% to the Limited Partner and 15% to the US General
Partner.

Allocations to the US General Partner pursuant to paragraphs (iii) and (iv) are
together referred to as the “Incentive Fee” and one third of the amount so
calculated will be paid to the US General Partner as of each Incentive Fee
payment date.

Should any Limited Partner exercise its right to have any of its LP Units
redeemed before the payment in full of the Incentive Fee, the Incentive Fee (or
the balance thereof) will be determined as at the date of redemption (taking into
account the applicable Redemption Discount) and paid out using redemption
proceeds.

In the event the Fund is wound-up before the payment in full of the Incentive
Fee, the Incentive Fee payable will be determined as at that date and paid out
using wind-up proceeds.
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Section 6.0 – Summary of Principal Terms
Gross-up

All fees and expenses payable by the US Fund to the US General Partner,
including the Management Fee, the Commitment Fee, the Offering and
Organizational Expenses and the Fund expenses, will be paid without
deductions for taxes, assessments, fees or charges of any kind.
Asset
Management

The US General Partner may provide, directly or through an affiliate (including
the US Manager), to any person in which it holds Portfolio Investments, asset or
project management services, provided that the US General Partner, or its
affiliate, as the case may be, may receive fees for the provisions or arrangement
thereof only on terms no less favourable to such person than would be obtained
on an arm's-length basis. All such fees paid by such person (excluding the
portion of such fees that constitute the recovery of costs incurred by the US
General Partner, or its affiliates, as the case may be, to provide such services
and related expenses, including, without limitation, in connection with costs
incurred in respect of the services of personnel of the US General Partner
dedicated to a particular Portfolio Investment) that are received by the US
General Partner (or any of its affiliates including the US Manager) will be applied
to prospectively reduce the Management Fee otherwise payable in respect of
the US Fund.
Dealings
between the
US Fund, the
US General
Partner and the
US Manager

Except as expressly contemplated in the Limited Partnership Agreement of the
US Fund or in the Management Services Agreement, all dealings between the
US Fund, the US General Partner and the US Manager will be performed on an
arm’s length basis.
Key Persons

The ability of the US Fund to make new Portfolio Investments will be suspended
th
if (i) before the tenth (10 ) anniversary date of the first Vintage, Mr. Pierre Anctil
or both Messrs. Stéphane Mailhot and Juan Caceres of (ii) thereafter, any two of
Messrs. Pierre Anctil, Stéphane Mailhot and Juan Caceres, cease to be actively
involved with the US Manager and to spend a sufficient portion of their working
time attending to the business of the US Fund and as necessary to meet the
Investment Objective of the Fund (a “Key Person Event”); provided that the US
Fund will be permitted to transact any investment transaction in progress as of
the date of such Key Person Event occurred or to make any follow-on
investments in existing Portfolio Entity for the purpose of protecting an existing
Portfolio Investment.

The suspension of new investments will remain in effect following a Key Person
Event until (i) the US General Partner has nominated suitably qualified
replacements that have been approved in accordance with the Limited
Partnership Agreement of the US Fund, (ii) the Limited Partners and holders of
Feeder Partnership Special Voting Interests of the US Fund, by Extraordinary
Resolution, elect to remove and replace the US General Partner or (iii) the
Limited Partners and holders of Feeder Partnership Special Voting Interests of
the US Fund, by Majority Resolution (as defined herein), vote to restore the
ability of the US Fund to make investments.

If the US General Partner is found to have engaged in certain disabling conduct,
Limited Partners of the US Fund may by a Majority Resolution elect to remove
the General Partner of the US Fund.

Limited Partners of the US Fund may elect, by Extraordinary Resolution without
having to demonstrate “cause”, to remove the US General Partner.

Except as permitted by Limited Partners of the US Fund by Special Resolution,
“For cause”
and “no fault”
Removal and
Resignation of
the General
Partner of a
Fund
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Section 6.0 – Summary of Principal Terms
the US General Partner will not be entitled to resign as general partner of the
US Fund.
Valuation
Amendments

Upon the US General Partner being removed as general partner, the Limited
Partners shall pay to the Fund, on a pro rata basis based on their respective
Capital Commitments, and the Fund shall then pay to the removed US General
Partner, an Incentive Fee calculated (as described under the heading
“Incentive Fee”) as of such date.

The General Partners of the North American Fund, the Canadian Fund and the
US Fund will each year, in accordance with the Limited Partnership Agreement,
appoint a partner of the corporate finance group of an independent accounting
firm other than the accounting firm appointed as the auditors of Fund (the
“Independent Valuator”). The Independent Valuator shall review the fair market
valuation of the NAV of the US Fund, the Canadian Fund and the North
American Fund as of June 30 of such year calculated and reported by their
respective general partner and manager using a methodology that shall have
been approved in accordance with the Limited Partnership Agreement, and
shall, prior to September 30 of such year, provide an independent valuation
report addressed to the Limited Partners confirming whether the said valuation
is acceptable as result of being within a range of acceptable values. The
Independent Valuator of the US Fund shall be the same person as the
independent valuator of the North American Fund and the Canadian Fund.

Should the NAV of the US Fund, as reported by the US General Partner and the
US Manager, be contested by any party so entitled under the Limited
Partnership Agreement, the US General Partner shall appoint, upon the
recommendation of said party, a partner of the corporate finance group of an
independent accounting firm other than the accounting firm appointed as
auditors of the Fund and other also than the accounting firm of which the
Independent Valuator is a partner, to perform a second valuation of such NAV
(the “Second Independent Valuator”). Further to the situation described
above, the aggregate NAV of the US Fund will be equal to arithmetic average of
(i) the midpoint of the range of values of such NAV as determined by the
Independent Valuator and (ii) the midpoint of the range of values of such NAV
as determined by the Second Independent Valuator, and shall be final and
binding on all parties.

The NAV per US LP Unit will be determined based on the most recent available
valuation of the US Fund plus interest thereon at an annual rate of 8% accrued
from the date of such valuation (or any revised rate as approved in accordance
with the Limited Partnership Agreement of the US Fund). The US General
Partner will be entitled to adjust the NAV per US LP Unit to reflect any material
event that occurred in connection with a Portfolio Investment since the most
recent valuation, provided that if such adjustment is higher than 2% it shall
obtain all approvals required under the Limited Partnership Agreement.

The Limited Partnership Agreement of the US Fund will set forth certain
procedures for its amendment, generally with the consent of the US General
Partner and the consent of the Limited Partners and holders of Feeder
Partnership Special Voting Interests of the US Fund by Special Resolution to
the extent such amendment does not affect the distributions or increase any
financial obligation or liability as Limited Partner beyond that contemplated in
the Limited Partnership Agreement of the US Fund.

The Limited Partnership Agreement will also include customary provisions
allowing the US General Partner to make certain amendments to the Limited
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117
Section 6.0 – Summary of Principal Terms
Partnership Agreement without the consent of the Limited Partners or holders of
Feeder Partnership Special Voting Interests in order to, amongst other things,
(i) reflect the admission of one or more additional special partners or any
transfer of LP Units, (ii) change the name of the US Fund, (iii) satisfy any
applicable law, (iv) execute an updated version of the Limited Partnership
Agreement updating and incorporating any previous replacements, additions
and other amendments, and generally, (v) in a manner that has no material
adverse effect on any Limited Partner or holder of Feeder Partnership Special
Voting Interests or that benefits all Limited Partners and holders of Feeder
Partnership Special Voting Interests.

The US Fund will be dissolved:
i.
if the US General Partner determines that changes in any law would be
materially burdensome to the US Fund;
ii.
a judicial decree of dissolution has been obtained;
iii.
if Limited Partners of the US Fund determine by Extraordinary
Resolution that the US Fund will be dissolved, provided that at least five
(5) years have elapsed since the creation of the US Fund; or
iv.
in the circumstances described under the heading “Redemption Right”.

The General Partner of the US Fund will act as liquidator of the US Fund, and
will proceed to the orderly winding-up of its affairs and will be granted a period
of at least three years to complete such winding-up.
Exculpation
and
Indemnification

None of the US Fund, the US General Partner, the US Manager and their
respective affiliates, or the directors, officers, partners, members, employees or
agents of each of them (each a “Covered Person”) will be liable to the US Fund
or to the Limited Partners for any good faith act or omission of such Person,
except for any such act or omission constituting gross fault, gross negligence,
intentional fault. intentional misconduct or fraud by such Covered Person. The
US Fund will indemnify each Covered Person against all claims, damages,
liabilities, costs and expenses to which they may be or become subject by
reason of their activities on behalf of the US Fund, except to the extent that such
claims, damages, liabilities, costs or expenses are determined to have resulted
from such Person's own gross fault, intentional fault or fraud or other disabling
conduct as described in more detail in the Limited Partnership Agreement of the
US Fund.
ERISA
Considerations

Investment in the US Fund is generally open to institutions, including pension
plans, which may be subject to ERISA. The US Fund will use reasonable efforts
to operate the US Fund so that the assets thereof will not be considered “plan
assets” under ERISA. Each prospective Limited Partner subject to ERISA is
urged to consult its own advisors as to the provisions of ERISA applicable
to an investment in the US Fund.
Bank
Regulatory
Matters

A Limited Partner that is, or any of whose affiliates are, a “bank holding
company” under the U.S. Bank Holding Company Act of 1956, as amended (the
“BHCA”), may be considered a “BHC Partner”. The Limited Partnership
Agreement of the US Fund imposes a number of restrictions on the voting rights
of BHC Partners meant to aid compliance with the requirements of the BHCA by
such BHC Partners. Each prospective Limited Partner subject to the BHCA
is urged to consult its own advisors as to the provisions of BHCA and the
Limited Partnership Agreement of the US Fund applicable to an
investment in the US Fund.
Dissolution
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118
Section 6.0 – Summary of Principal Terms

As a partnership, the US Fund generally will not be subject to U.S. federal
income tax, and each Limited Partner subject to U.S. tax will be required to
include its allocable share of the items of income, gain, loss and deduction of
the US Fund in computing its U.S. federal income tax liability, regardless of
whether and to what extent distributions are made by the US Fund to such
Limited Partner.

The taxation of partners and partnerships is extremely complex. Each
prospective Limited Partner is strongly encouraged to seek and obtain
independent tax advice prior to making an investment in the US Fund.
Confidentiality

Subject to certain exceptions, no Limited Partner of the US Fund will disclose to
any Person any information related to the US General Partner, the US Fund,
any Portfolio Investment or proposed Portfolio Investment or any of their
respective affiliates, in each case, that is not publicly available, provided that a
Limited Partner may disclose any such information (i) to the extent required
pursuant to any law or regulation or pursuant to any rule or policy of a stock
exchange on which securities of such Limited Partner are listed for trading, (ii) to
directors, officers, employees and legal, financial and tax advisors of such
Limited Partner, so long as such disclosure is for a bona fide business purpose
of such Limited Partner and any such recipient is informed of the confidential
nature of the information.
Fund Currency

The reference currency of the US Fund will be the US dollar.
Risk Factors
and Potential
Conflicts of
Interest

There can be no assurance that the US Fund’s investment objective will be
achieved, or that a Limited Partner will receive a return of its capital. An
investment in the US Fund involves significant risks and potential conflicts of
interest. For a more detailed discussion of risks and conflicts of interests
applicable to an investment in the US Fund, please refer to Section 7.0 entitled
“Certain Risk Factors”.
Governing Law

The Limited Partnership Agreement of the US Fund will be governed by and
construed in accordance with the laws of the State of Delaware and the federal
laws of the United States applicable therein.
Tax
Considerations
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119
7. Certain Risk Factors
Confidential Information Memorandum
120
Section 7.0 – Certain Risk Factors
Section 7.0 – Certain Risk Factors
Direct or indirect investments in LP Units of any of the Funds involves a significant degree of risk. The
risks and uncertainties below represent the risks that the Canadian Manager and the US Manager believe
are material. If any of the events or developments discussed below actually occurs, any of the Funds’
assets, liabilities, business, financial condition, results of operations and distributable cash could be
adversely affected. The risks described in this section and elsewhere in this Memorandum are not
exhaustive of all risks that apply to an investment in the Funds. Other factors not presently known by the
Canadian Manager or the US Manager, or reasonably foreseeable to them, or that the Canadian
Manager and the US Manager believe are not material could also affect the future business and
operations of the Funds.
7.1.
Risks Relating to the LP Units
There is no active and liquid market for the LP Units
There is no market through which the LP Units may be sold and the Funds have not been registered
pursuant to the US Securities Act and have not qualified the issuance of the LP Units in Canada by a
prospectus and there is no intent to qualify the LP Units under the US Securities Act or under a
prospectus under Canadian securities laws, and therefore the LP Units will be subject to transfer
restrictions in Canada, the United States and other jurisdictions. As a result, the capacity of holders of LP
Units to sell them or to sell them at such holders’ preferred price and time will be substantially limited.
The ownership and transfer of the LP Units are subject to certain restrictions pursuant to the
organizational documents of the Funds
The ownership and transfer of the LP Units are subject to certain restrictions pursuant to the relevant
Limited Partnership Agreements. The Limited Partnership Agreements provide that any person who
wishes to transfer any LP Unit must obtain the approval of the relevant General Partner and meet a series
of conditions regarding documents to be provided, including, without limitation, in certain circumstances,
providing a legal opinion to the effect that the consummation of the transfer will not violate any provisions
of applicable securities legislation, will not cause the relevant Fund to have to file a prospectus,
registration statement or similar document under applicable securities legislation and will not violate the
laws, rules or regulations of any province or any governmental authority applicable to such transfer.
If the holder of LP Units fails to comply with such provisions, the sale of the LP Units will not be
recognized as valid. Such provisions of the Limited Partnership Agreements may make it less attractive
for certain entities to invest in LP Units.
Issuance of additional LP Units may result in dilution of holders of LP Units
The Limited Partnership Agreements allow the relevant General Partner to cause the relevant Fund to
issue LP Units at its sole discretion on such terms and conditions as shall be established by such General
Partner without the approval of holders of LP Units. Issuances of additional LP Units in any given Fund
may result in dilution to the holders of LP Units of such Fund, or in the case of issuances of additional LP
Units by the Canadian Fund or the US Fund, in indirect dilution to the holders of LP Units of the North
American Fund.
Limited Partners do not have a right to take part in the management of the Funds
Pursuant to the Limited Partnership Agreements, Limited Partners will have no right or power to take part
in the management, administration or control of the business or affairs of the Funds, transact any
Confidential Information Memorandum
121
Section 7.0 – Certain Risk Factors
business on behalf of the Funds, act as mandatary or agent for the Funds or allow their names to be used
in any act of the Funds.
As a result, unlike holders of common stock of a corporation, the holders of LP Units are not able to
influence the direction of the Funds, including its policies and procedures, or to cause a change in its
management, even if they are unsatisfied with the performance of the Funds, and will depend solely upon
the ability of the applicable General Partner with respect to making, monitoring and exiting from
investments. In addition, Limited Partners will not have an opportunity to evaluate the Portfolio
Investments made by the Canadian Fund and US Fund before such Portfolio Investments are made.
Limited Partners will, however, have the right to cause the removal of such General Partner and will have
the right to approve or disapprove a proposed winding-up and liquidation of the Funds, in each case, with
the required level of approval from all Limited Partners, as set forth in the applicable Limited Partnership
Agreement.
The LP Units are not shares of a body corporate
A holder of a LP Unit does not hold a share of a body corporate. As Limited Partners of the Funds, the
holders of LP Units will not have statutory rights normally associated with ownership of shares of a
corporation including, for example, the right to bring “oppression” or “derivative” actions. The rights of
holders of LP Units are based primarily on the applicable Limited Partnership Agreement. There is no
statute governing the affairs of the Funds equivalent to the Canada Business Corporations Act which sets
out the rights and entitlements of shareholders of corporation in various circumstances and the US Fund
is subject to the Delaware Revised Uniform Limited Partnerships Act and the Limited Partners of such
Fund are not entitled to the benefits and protections of the Delaware General Corporate Law.
An investment in the LP Units is not insured under applicable legislation
An investment in the LP Units of the North American Fund or the Canadian Fund does not constitute a
deposit that is insured under the Canada Deposit Insurance Corporation Act or the Deposit Insurance Act
(Québec). Additionally, an investment in the LP Units of the US Fund does not constitute a deposit that is
insured by the U.S. Federal Deposit Insurance Corporation (FDIC) or any comparable deposit insurance
state law or scheme. An investment in any of the Funds involves investment risks, including the possible
loss of the principal amount invested.
If a significant number of LP Units of a Fund are tendered for redemption, it may have an impact
on the Fund and the Limited Partners
At any time, a Limited Partner may, by submitting a Redemption Request to the General Partner of such
Fund during the applicable Redemption Notice Period, request that on the next Redemption Date all or a
portion of its LP Units be redeemed by the applicable Fund at a redemption price per LP Unit to be based
on the NAV per LP Unit of the class or series of the LP Units tendered to be redeemed on the
Redemption Date on which such LP Unit is actually redeemed, as described in Section 6 entitled
“Summary of Principal Terms” under the heading “Redemption Right”. The purpose of the redemption
right is to provide holders of LP Units with an opportunity to liquidate their investment given that there is
no active and liquid market for the LP Units. If a significant number of LP Units of a Fund are tendered to
be redeemed on a specific Redemption Date, (i) the Fund may be required to sell or monetize Portfolio
Investments in order to satisfy redemption payment obligations and may not be able to complete such
Portfolio Investment sales on favourable terms or at all, (ii) the expenses of the Fund would be spread
among fewer LP Units resulting in a higher management expense ratio per LP Unit, and (iii) LP Units
submitted for redemption in excess of certain of the redemption limits described under Section 6 (entitled
“Summary of Principal Terms” under the heading “Redemption Right”) may not be redeemed on such
date.
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Section 7.0 – Certain Risk Factors
Redemption restrictions; limited unilateral excuse and withdrawals rights; and timing of payments
of withdrawn amounts each present risks to Limited Partners
The Limited Partnership Agreements permit Limited Partners to request the redemption of their LP Units
in each Fund, in whole or part, at certain dates and upon terms and conditions set forth in the applicable
Limited Partnership Agreement. Redemptions requested within the initial five (5) years of an investment
being made will be subject to an early redemption discount that will be paid to the applicable Fund. The
redemption process is also subject to restrictions based upon availability of capital within the Fund and
hardship on the Fund or its remaining Partners, as are set out in detail in each of the Limited Partnership
Agreements. The General Partners are provided with discretion to determine whether redemptions are
permitted based on various facts and circumstances. If an investor is seeking an investment opportunity
that will guaranty the immediate withdrawal of invested amounts, then the Funds may not be a suitable
investment for such an investor.
Limited Partners are not permitted to unilaterally retire or withdraw from any Fund or unilaterally excuse
themselves from further participation in investments of a Fund to which it has an Undrawn Capital
Commitment, except pursuant to properly tendered redemption requests in accordance with the terms of
the Limited Partnership Agreements and certain other limited cases described in the Limited Partnership
Agreements. The Limited Partnership Agreements specify certain circumstances under which a Limited
Partner may be required by the General Partner to withdraw from a Fund, including on the basis of a
mandatory redemption in the discretion of the General Partner.
In some cases, a withdrawn Limited Partner may not be entitled to immediate cash payment for its
interest in the applicable Fund; for example, a Fund may purchase a Limited Partner’s LP Units by the
delivery of a promissory note that matures in five years, as described in more detail in the applicable
Limited Partnership Agreement. Any withdrawal or redemption of a Limited Partner will reduce the
amount of the affected Fund’s capital available for investment or other activities, and decrease the
diversification of the investment of the remaining Limited Partners of the affected Fund.
Risks related to anti-money laundering regulations Controls
To the extent that the Funds are responsible for the prevention of money laundering, the applicable
General Partner and its affiliates may require a detailed verification of a prospective Limited Partner’s
identity, any beneficial owner thereof, and the source of the capital contributed to the applicable Fund.
The General Partners reserve the right to request such information as is necessary to verify the identity of
a prospective Limited Partner in the Funds and any beneficial owner thereof. In the event of delay or
failure by a prospective investor or Limited Partner to produce any information required for verification
purposes, the applicable General Partner may refuse to accept a subscription or may cause such Limited
Partner to withdraw from the applicable Fund. A General Partner has the right to suspend any Limited
Partner’s right to receive distributions from the Funds (including upon redemption) if the General Partner
reasonably deem it necessary to do so to comply with anti-money laundering regulations applicable to the
Funds, the General Partners or any member or affiliate thereof.
Each prospective investor and Limited Partner is required to make such representations to the applicable
Fund as it and the applicable General Partner require in connection with such anti-money laundering
programs. Failure to comply with anti-money laundering laws and regulations applicable to the Funds
may result in fines or penalties (including criminal) being applied to one or more of the Funds, the General
Partners or a relevant Limited Partner. Any investigation or adverse finding relating to anti-money
laundering laws or regulations could otherwise adversely impact the operations and investments of a
Fund.
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Section 7.0 – Certain Risk Factors
7.2.
Risks Relating to the Funds
The Funds are recently formed partnerships with limited separate operating history
The limited operating history of the North American Fund, Canadian Fund and US Fund will make it
difficult to assess their ability to operate profitably and make distributions to holders of LP Units. The prior
investment performance of the Canadian Manager and its initial managed fund, Société en commandite
Fiera Axium Infrastructure Canada / Fiera Axium Infrastructure Canada Limited Partnership (“FAICLP”),
are described herein. The future performance of the Funds, however, will differ from the results of FAICLP
and the Canadian Manager’s and its affiliates’ prior investments due to the different investment periods,
geographical focus and fees and expenses of the Funds. As with all performance data, there can be no
assurance that the Funds will achieve similar results or that any projected favourable conditions in North
America’s infrastructure industry, generally, will occur. Further, Fiera Axium has not previously managed
a fund with investments primarily or exclusively in the United States as contemplated for the US Fund.
The Funds are subject to limited regulatory oversight
The LP Units have not been and will not be qualified for distribution to the public under the securities laws
of any province or territory of Canada or of the U.S. and its states. Neither any securities regulatory
authority in Canada nor the SEC nor any state securities commission has reviewed this Memorandum or
approved or disapproved of this offering, and any representation to the contrary is prohibited by law and
constitutes a criminal offense in the U.S and in Canada as well as a statutory offense under Canadian
securities laws. The LP Units have not been and will not be qualified by a prospectus in Canada and will
not be registered under the US Securities Act or the securities laws of any state of the United States.
Restrictions on transferability are set forth in the Limited Partnership Agreements and described in this
Memorandum.
The US Manager is registered as an exempt reporting adviser with the U.S. Securities and Exchange
Commission. Each of the US General Partner and the NA II General Partner intends to be registered as
“relying advisers” of the US Manager, and the Canadian Manager is not currently registered as an
investment adviser by any securities regulatory authority in Canada. Accordingly, the protections
available to clients of a registered adviser or a registered investment fund manager will not be available to
purchasers of the LP Units in Canada or in the U.S.
Also, notwithstanding that the Funds may be considered similar in some ways to an investment company,
the Funds are not required, and the Funds do not intend, to register as such under the United States
Investment Company Act of 1940, as amended (the “Company Act”). Accordingly, the provisions of the
Company Act and regulations promulgated thereunder, which among other things generally require
investment companies to have a majority of disinterested directors, require securities held in custody at
all times to be maintained in segregated accounts and regulate the relationship between the investment
company and its asset manager, are not applicable to an investment in the Funds.
Performance of the Funds depends on the services of certain key personnel of the Canadian
Manager and of the US Manager
The Limited Partners of each Fund will be relying on the ability of the Canadian Manager and the US
Manager, as applicable, to select the investments to be made using the capital available to the Funds.
The success of each Fund will depend in large part upon the skill and expertise of professionals
performing services on behalf of the Canadian Manager and the US Manager and may be affected by key
individuals joining or leaving the Canadian Manager or the US Manager. The Canadian Manager and the
US Manager expect that such individuals will devote as much time as they believe is necessary to assist
the Funds in achieving their investment objectives, but there can be no assurance that such professionals
will continue to be associated with the Canadian Manager or the US Manager throughout the life of the
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Section 7.0 – Certain Risk Factors
Funds. The loss of one or more of the Funds’ key personnel could have a material adverse effect on the
performance of the Funds.
The target IRR of the Funds is subject to market conditions
The Funds’ targeted IRR set forth in Section 6 entitled “Summary of Principal Terms” under the heading
“Fund’s Objective” is based on current available investment opportunities and predictions of the
infrastructure market and economic conditions generally. There can be no assurance that the Funds will
achieve their respective investment objective, the target IRR or any other objectives. In addition, because
current estimates of market conditions are likely to change during the term of the Funds, prospective
investors should note that the actual realized return over the term of the Funds will depend upon a
number of risk factors, as set forth herein, and may vary materially from the target IRR from time to time.
The target IRR is net of the applicable Manager’s Incentive Fee, management and commitment fees and
other Fund expenses. The effect of taxes payable by certain of the Portfolio Entities (including tax
blockers) will reduce returns to certain Limited Partners. The Portfolio Entities have different
organizational structures. Actual returns experienced by Limited Partners will likely differ due to these
structural and tax considerations and such differences may be material.
“Master-Feeder” structures present certain unique risks
The North American Fund will invest through a “master-feeder” structure. Although a common fund
structure, the “master-feeder” fund structure presents certain unique risks to Limited Partners. For
example, a smaller feeder fund investing in the Canadian Fund or the US Fund may be materially
affected by the actions of other direct Limited Partners or a larger feeder fund investing in such Fund. If
another Limited Partner withdraws from the Canadian Fund or the US Fund, the remaining Partners,
including the North American Fund may experience higher pro rata operating expenses, thereby
producing lower returns. The North American Fund may become less diverse due to a redemption by a
larger Limited Partner of the Canadian Fund or the US Fund, resulting in increased portfolio risk. In
addition, the North American Fund’s investments in the Canadian Fund and the US Fund give rise to
certain conflicts of interest that may exist due to different tax, regulatory or other considerations
applicable to the North American Fund, the Canadian Fund and the US Fund. (See “Certain Conflicts of
Interest” below.)
A Limited Partner of the North American Fund or of the Canadian Fund may lose its limited
liability if certain legal requirements are not met
The North American Fund and the Canadian Fund were formed pursuant to the Civil Code of Québec and
as a result, the Limited Partners of the North American Fund and the Canadian Fund will be special
partners of their respective Fund, as provided in the Civil Code of Québec. The Civil Code of Québec
provides that a special partner benefits from limited liability unless such special partner gives opinions
other than advisory opinions with regards to the management of the limited partnership, negotiates any
business on behalf of the limited partnership, acts as mandatary or agent for such limited partnership or
allows its name to be used in any act of the limited partnership. A Limited Partner of the North American
Fund or of the Canadian Fund is liable for the debts of the relevant Fund on a pro rata basis, based on
the number of LP Units it holds, up to such Limited Partner’s aggregate Capital Commitment, so that it is
at risk of losing the value of such commitment should the value of such debts exceed the value of the
assets of such Fund. In order that the liability of the Limited Partners in the North American Fund or the
Canadian Fund be limited to the extent described, the legal requirements of the Civil Code of Québec and
other applicable provincial legislation must be satisfied at all times with respect to such Fund.
The limitation of liability conferred under the Civil Code of Québec may be ineffective outside the Province
of Québec except to the extent it is given extra-territorial recognition or effect by the laws of other
jurisdictions. There may also be requirements to be satisfied in each jurisdiction to maintain limited
liability. If limited liability is lost, Limited Partners may be considered to be general partners (and therefore
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Section 7.0 – Certain Risk Factors
be subject to unlimited liability) in such jurisdiction by creditors and others having claims against the North
American Fund or the Canadian Fund, as applicable.
Furthermore, a Limited Partner of the North American Fund or of the Canadian Fund remains liable for
any portion of the purchase price for the LP Units returned by the North American Fund or of the
Canadian Fund to such Limited Partner, with interest, necessary to discharge the liabilities of such Fund
to all creditors who extended credit or whose claims otherwise arose before such amount was returned.
Exculpation and indemnification provisions may limit the Funds recourse against the General
Partners
Each of the Limited Partnership Agreements sets forth the circumstances under which the applicable
General Partner, its affiliates and their respective directors, officers, partners, members, employees or
agents are to be excused from liability to the applicable Fund and its Limited Partners for damages or
losses that such Fund or such Limited Partners may incur by virtue of any such person’s performance or
services for such Fund. As a result, the applicable Fund and its Limited Partners may have limited rights
against these persons. If a claim is made against a General Partner, its affiliates or their directors,
officers, partners, members, employees or agents, such persons may be entitled to be indemnified by the
applicable Fund, in which case the assets of such Fund could be used to indemnify such persons for
amounts incurred in connection with such claim. In certain cases, previous distributions to a Fund’s
Limited Partners may be recalled to cover such indemnification obligations of such Fund.
The Limited Partners may have limited access to information
The rights of Limited Partners to information regarding the Funds and their Portfolio Investments will be
specified, and strictly limited, in the relevant Limited Partnership Agreement. In particular, it is anticipated
that the General Partners will obtain certain types of material information that will not be disclosed to
Limited Partners. For example, a General Partner may obtain information regarding Portfolio Entities
(e.g., via members of such General Partner serving as advisors to, or officers/directors of, Portfolio
Entities) that is material to determining the value of securities issued by such Portfolio Entities. Such
information may be withheld from Limited Partners in order to comply with duties to such Portfolio Entities
or otherwise to protect the interests of such Portfolio Entities or the applicable Fund. Decisions by a
General Partner to withhold information may have adverse consequences for Limited Partners in a variety
of circumstances. For example, a Limited Partner that seeks to sell its interest in a Fund may have
difficulty in determining an appropriate price for such interest. If a General Partner determines to withhold
information from a Limited Partner, this may also make it difficult for Limited Partners to subject the
General Partner to rigorous oversight.
7.3.
Risks Relating to the Operations of the Funds
There can be no assurance that any of the Funds will achieve its objective. Investments in infrastructure
and infrastructure-related assets involve an inherently greater risk of loss of capital than various other
types of investments, due in large part to the risk factors set forth above. Therefore, prospective Limited
Partners must recognize that, notwithstanding the Funds’ objectives, the Funds may be unable to
preserve a Limited Partner’s capital through its investments.
The Portfolio Entities are subject to general economic conditions and government regulation
All of the Portfolio Entities depend on the financial health of their customers who may be sensitive to the
overall performance of the economy. Adverse local, regional or worldwide economic trends that affect
each respective economy could have a material adverse effect on the financial condition and results of
operations. The financial condition and results of operations could also be affected by changes in
economic or other government policies or other political or economic developments in each country,
province or state, as well as regulatory changes or administrative practices over which the Funds have no
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Section 7.0 – Certain Risk Factors
control such as: the regulatory environment related to the business operations and concession
agreements; interest rates; currency fluctuations; exchange controls and restrictions; inflation; liquidity of
domestic financial and capital markets; tax policies; and other political, social and economic
developments that may occur in or affect the countries, provinces or states in which the operating entities
operate or the countries in which the customers of the operating entities operate or both. In addition,
operating costs can be influenced by a wide range of factors, many of which may not be under the control
of the owner/operator, including the breakdown or failure of equipment or processes, labour disputes,
industrial accidents and the need to comply with the directives of central and local government
authorities.
Certain Portfolio Entities and Portfolio Investments may experience financial difficulties and
experience losses
Portfolio Entities and Portfolio Investments may involve a high degree of business and financial risk.
Portfolio Entities and Portfolio Investments may be in early stages of development, may have operating
losses or significant variations in operating results and may be engaged in rapidly changing businesses
with products subject to a substantial risk of obsolescence. Portfolio Entities and Portfolio Investments
may also include companies that are experiencing or are expected to experience financial difficulties,
which may never be overcome. In addition, they may have weak financial conditions and may require
substantial additional capital to support their operations, to finance expansion or to maintain their
competitive positions. Portfolio Entities and Portfolio Investments may face intense competition, including
competition from companies with greater financial resources, more extensive development,
manufacturing, marketing, and other capabilities and a larger number of qualified managerial and
technical personnel.
The Canadian Manager and the US Manager may encounter difficulties in identifying adequate
Portfolio Investments
The success of the Funds depends upon the ability of the relevant General Partner and of the Canadian
Manager and US Manager to identify, select, develop and invest in Portfolio Investments that they believe
offer the potential of superior relative returns. The availability of such opportunities will depend, in part,
upon general market conditions.
The Funds may not be able to successfully fund future acquisition of Portfolio Investments due to
the unavailability of debt or equity financing on acceptable terms, which could impede the
implementation of the Funds’ acquisition strategy
In order to make Portfolio Investments, the Funds will generally require funding from external sources.
Since the timing and size of such acquisitions and capital raisings cannot be readily predicted, the Funds
may need to be able to obtain funding on short notice to benefit fully from attractive opportunities if the
existing Capital Commitments are not sufficient to cover the acquisition cost of such Portfolio
Investments.
Debt to fund such Portfolio Investments may not be available on short notice or may not be available on
terms acceptable to the Funds. In addition, the required amount of debt may exceed the indebtedness
threshold allowed under the applicable Limited Partnership Agreement. The Canadian Manager and the
US Manager intend to fund the balance of consideration for such future Portfolio Investments through
additional subscriptions for LP Units. The Funds may not be able to obtain subscriptions for the required
amount of Capital Commitments on short notice or at all due to a lack of investor demand for the LP Units
at prices that the Funds will consider to be in the interests of the then existing Limited Partners.
As a result of a lack of funding, the Canadian Manager and the US Manager may not be able to pursue
their acquisition strategy successfully.
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Section 7.0 – Certain Risk Factors
The Funds may have to assume the risk of certain liabilities upon disposition of Portfolio Entities
or Portfolio Investments
In connection with the disposition of an investment in a Portfolio Entity, any of the Funds may be required
to make representations and warranties about the business and financial affairs of such Portfolio Entity
typical of those made in connection with the sale of any business. The disposing Fund may also be
required to indemnify the purchasers of such Portfolio Entity to the extent that any such representations
or warranties turn out to be inaccurate or misleading. These arrangements may result in liabilities for the
Fund that made such representations. Such Fund may face similar risks with respect to dispositions of its
Portfolio Investments.
Various factors may limit the Funds’ ability to diversify the types of investments and may expose
them to concentration risks
Although the respective General Partner of the Canadian Fund and of the US Fund will seek to diversify
the Funds’ investment portfolios, in accordance with each of their investment policies, the Canadian Fund
and the US Fund may invest a significant percentage of their respective invested capital in one
investment or class of investments, or in a relatively small number of investments. Various factors,
including prevailing market conditions, available investment opportunities, the timing of investments and
the size of the Funds may prevent the General Partners from diversifying the Funds’ portfolios or may
result in the Funds’ portfolios being less diversified than the General Partners may wish. For these and
other reasons, the Funds could potentially be concentrated in relatively few Portfolio Investments,
Portfolio Entities, regions or industries, and thus the benefits of diversification may not be realized.
Because of the length of time typically needed to construct a private equity portfolio, the Funds’ portfolios
initially will not be diversified. One risk of having a limited number of investments is that the aggregate
returns realized by the Limited Partners may be substantially adversely affected by the unfavourable
performance of a small number of such investments.
In addition, the Funds will seek to invest all of their assets in either direct or indirect ownership of
Infrastructure Assets. Given the concentration of the Funds’ assets in the infrastructure industry, the
Funds will be more susceptible to adverse economic or regulatory occurrences affecting that industry
than a fund that is not concentrated in a single industry. The Funds may invest in a limited number of
Portfolio Investments, and, as a consequence, the aggregate returns realized by the Limited Partners
may be materially and adversely affected by the unfavourable performance of a small number of such
Portfolio Investments.
In addition, each of the Canadian Fund and the US Fund will invest in Portfolio Investments located
exclusively in their respective countries, thus exposing them to changes in economic conditions and to
specific events within these countries. Such potential exposure could also affect the North American
Fund, given that at least 70% of the funds of the North American Fund will be invested, directly or
indirectly, in the Canadian Fund and the US Fund.
The Funds may encounter liabilities as a result of their control position in certain Portfolio Entities
The Canadian Fund or the US Fund (alone, or together with other Limited Partners) may have a control
position with respect to some Portfolio Entities, which could expose them to liabilities not normally
associated with minority equity investments, such as additional risks of liability for environmental damage,
product defects, failure to supervise management, violation of governmental regulations (including
securities laws) or other types of liabilities in which the limited liability generally characteristic of business
operations may be ignored. The Canadian Fund and the US Fund may incur similar liability in connection
with their Portfolio Investments. If these liabilities were to arise, a Fund might suffer significant losses.
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Section 7.0 – Certain Risk Factors
The Funds may encounter liabilities as a result of their minority interests in certain Portfolio
Entities
The Canadian Fund or the US Fund may own minority positions in certain Portfolio Entities.
Consequently, prior to and after their acquisition of these investments, they may have limited access to
the management and documentary records of these Portfolio Entities and have limited legal rights to
influence the management of these Portfolio Entities. The inability of the Funds to exercise significant
influence over the operations, strategies and policies of the Portfolio Entities in which they will have a
minority interest means that decisions could be made by such Portfolio Entities that could adversely affect
the Funds’ result and their ability to generate cash and pay distributions.
Due to the geographical diversification of the Portfolio Investments in the Funds in both Canada
and the United States, foreign currency movements are likely to influence returns on the Limited
Partners of the North American Fund
Adverse movements in currency exchange rates have the potential to reduce investment returns.
Investments in the US Fund will be denominated in US dollars and investments in the North American
Fund and in the Canadian Fund will denominated in Canadian dollars and therefore the value of the
investments made in the US Fund via the North American Fund may fluctuate as a result of changes in
currency exchange rates. Movements in exchange rates between the US dollar and the Canadian dollar
can therefore have a material effect on the North American Fund’s results of operation to the extent they
are not hedged. While it is not currently expected that the North American Fund will enter into foreign
currency hedging arrangements to limit such exposure, the General Partner of the North American Fund
may enter into such arrangements in the future (see the risk factors described under the heading “The
use of foreign currency hedging instruments by the North American Fund and/or the US Fund could result
in material financial losses by the Funds” below).
The use of foreign currency hedging instruments by the North American Fund could result in
material financial losses by the North American Fund
The North American Fund may, but is not required to, employ hedging techniques to limit its foreign
currency exposure. These techniques could involve a variety of derivative transactions, including
transactions in forward foreign currency exchange contracts, currency swaps, short sales, forward
contracts and options (collectively, “Hedging Instruments”). While these transactions may attempt to
reduce risk, including currency risks associated with investments and/or commitments denominated in
other currencies, these transactions entail other risks. Thus, while the North American Fund may benefit
from the use of Hedging Instruments under certain circumstances, unanticipated market or economic
changes may result in a poorer overall performance for the North American Fund than if it had not
entered into any transactions involving Hedging Instruments. In the event of an imperfect correlation
between a Hedging Instrument position and the portfolio position intended to be hedged, the desired
protection may not be obtained, and the North American Fund may be exposed to risk of loss. It is not
possible to hedge fully or perfectly against currency fluctuations. Moreover, Hedging Instruments may not
be available in certain currencies or with a duration that matches the duration of the underlying principal
investment. There can be no assurance that the North American Fund will be able to close out a position
when deemed advisable by the North American General Partner and the North American Fund will be
subject to the risk that their counterparties will fail to meet their obligations. To the extent unhedged, the
value of investments denominated in currencies other than the U.S. Dollar will fluctuate with exchange
rates.
Hedging transactions involve additional costs and expenses, which may adversely affect the North
American Fund’s overall performance. It is not currently expected that the North American Fund’s portfolio
will be hedged, although the North American General Partner reserves the right to hedge the North
American Fund’s portfolio in the future. The decision as to when and to what extent the North American
Fund will engage in hedging transactions will depend upon a number of factors, including prevailing
market conditions, the composition of the North American Fund’s portfolio and the availability of suitable
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Section 7.0 – Certain Risk Factors
transactions. Accordingly, there can be no assurance that the North American Fund will engage in
hedging transactions at any given time or from time to time, or that such transactions, if available, will be
effective.
The North American Fund is not limited in its hedging activity to only transactions involving foreign
currencies and may, but is not obligated to, attempt to hedge other risks using transactions and
techniques it deems appropriate.
Valuation of illiquid assets presents inherent risks
Valuations for a Fund will be based upon a valuation policy adopted by the applicable General Partner
and reviewed in accordance with the relevant Limited Partnership Agreement of the Funds (including
review of any amendment thereof). In addition, the valuations used for purposes of establishing the Net
Asset Value of the Funds will involve independent third party evaluators selected and appointed by the
General Partners in accordance with such Limited Partnership Agreement.
The valuations of any Portfolio Investment contain assumptions that may not materialize. Unanticipated
results or changes in a particular Portfolio Investment, or changes in general or local economic conditions
or other relevant factors, including changes in government regulations, could affect such types of
valuations, and could have a material adverse effect on a Fund’s business, financial condition, results of
operations and prospects. Valuation assumptions, by their nature, are uncertain, and may differ materially
from actual results. Accordingly, a General Partner’s and external valuer’s valuations each may not reflect
the actual value that a Fund eventually and actually realizes from a Portfolio Investment. The Funds’
external valuers may use market value for their valuations. The assessment of market value is generally
based on one or more of the following methodologies depending on the nature of the property: direct
comparison, cost, residual, income capitalization and discounted cash flow methods, pursuant to which
the Funds’ Portfolio Investments are directly compared with other comparable projects of similar size,
character and location to provide a fair comparison of capital values. None of these methods, however,
can ensure the accuracy of the valuation of a unique and infrequently traded asset.
The failure of a Limited Partner to meet capital calls may have a material adverse effect on any of
the Funds
Failure by a Limited Partner to meet a Fund capital call could have adverse consequences for such Fund
and thus the other Limited Partners of such Fund. The relevant General Partner, in its sole discretion,
may take any of a number of actions to avoid such adverse consequences. Failure by a Limited Partner
to meet a Fund capital call could result in extremely adverse consequences to such Limited Partner.
The Funds operate in a highly competitive market for acquisition opportunities
The Infrastructure Assets that will be acquired by the Funds have not yet been identified. The activity of
identifying, completing and realizing attractive investments is highly competitive and involves a high
degree of uncertainty. The Funds will be competing for investments with other infrastructure investment
vehicles, including publicly traded infrastructure companies, private equity funds and hedge funds, large
and well capitalized industrial groups and commercial, investment and merchant banks, all with similar
investment objectives. Some of these competitors could have financial and strategic resources
significantly in excess of those of the Funds, may be willing to provide financing and other operational
assistance to infrastructure investments on more favourable terms than the Funds and may make
competing offers for investment opportunities that are identified by the Funds. Such competition may
adversely affect the terms upon which investments can be made. Consequently, potential Limited
Partners face risks and uncertainties with respect to the selection of Portfolio Investments and will be
relying on the ability of the Canadian Manager and of the US Manager to identify a sufficient number of
investment opportunities for the Funds. Further, as competition for investment opportunities increases,
the number of opportunities for appropriate investments may decrease. If the combination of increased
competition and fewer investment opportunities leads to higher valuations of potential investments, the
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Section 7.0 – Certain Risk Factors
Funds may either pay more for their investments than anticipated, thus potentially reducing the Funds’
returns, or be precluded from investing at all.
The Managers may have access to material non-public information
As a result of the extensive operations of the Canadian Manager, the US Manager and their affiliates, the
Canadian Manager and the US Manager frequently come into possession of confidential or material, nonpublic information of third parties, including customers of the Canadian Manager and the US Manager.
Use or disclosure of any “insider information” regarding third party information by the Canadian Manager
or the US Manager may be limited to members of working groups with a need for such information only.
Therefore, the Funds may not have access to material, non-public information in the possession of the
Canadian Manager or the US Manager that might be relevant to an investment decision to be made by a
Fund, and may initiate a transaction or sell a Portfolio Investment, which, if such information had been
known to it, may not have been undertaken. If any material, non-public information is disclosed to any
officers or employees of the Canadian Manager or the US Manager or any other person responsible for a
Fund’s affairs, such Fund may be prohibited by applicable securities laws and the internal policies of the
Canadian Manager or the US Manager, as applicable, from acting upon any such information. Due to
these restrictions, such Fund may not be able to make an investment that it otherwise might have made
or sell an investment that it otherwise might have sold.
The Funds may fail to identify material risks or liabilities associated with certain assets prior to
their acquisition
Part of the Funds’ separate and respective strategies is to acquire Infrastructure Assets in sectors in
which they will initially have no portfolio presence. Such acquisitions involve a number of special risks,
including failure to identify material risks or liabilities associated with the acquired assets prior to their
acquisition. To reduce these risks, the applicable General Partner will conduct certain diligence in relation
to each of the Fund’s potential investments. Such diligence may include a review of the disclosures
required of companies participating in regulated industries, key documents, management presentations,
management interviews, and certain independent reports on projects and their assets, as well as
independent analysis. However, the level of diligence conducted will vary and there is no assurance that
any such diligence will be thorough or conclusive and that all material risks in potential investments will be
identified. Moreover, the expenses relating to such diligence could be quite substantial. Diligence costs
may include, among others: feasibility and technical studies; preliminary engineering costs and marketing
studies; environmental reviews; legal costs; and bid preparation and submission costs. These and other
related expenses will be usually borne by the Fund.
Broken Deal Expenses
The US and Canadian Fund’s investments may require extensive due diligence activities prior to
acquisition, and the related expenses may be quite substantial. Due diligence costs may include among
others: feasibility and technical studies; preliminary engineering costs and marketing studies;
environmental reviews; legal costs; and bid preparation and submission costs. These expenses will be
borne by a Fund even if the applicable prospective investment is not finalized.
The Funds could be subject to various legal proceedings as a result of the nature of the
infrastructure industry or of the actions of the Portfolio Entities
Infrastructure Assets are often governed by a complex series of legal documents and contracts. As a
result, the risks of a dispute over interpretation or enforceability of the documentation and consequent
costs and delays may be higher than for other investments. In addition, the Funds may be subject to
claims by third parties (either public or private), including environmental claims, legal action arising out of
acquisitions or dispositions, workers’ compensation claims and third party losses related to disruption of
the provision of infrastructure services by an infrastructure provider. Further, it is not uncommon for
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infrastructure assets to be exposed to legal action from special interest groups seeking to impede
particular infrastructure projects to which they are opposed. If any of the Portfolio Investments become
involved in material or protracted litigation, the litigation expenses and the liability threatened or imposed
could have a material adverse effect on the Funds.
Further, in the normal course of their respective activities, the Funds, as a result of the actions of the
Portfolio Entities, could be subject to various legal proceedings concerning disputes of a commercial
nature and to claims in the event of bodily injury or material damage. The final outcome of any such
proceeding could have a negative impact on the Funds’ financial position or operating results during a
given quarter or financial year.
Acquisition by any of the Funds of debt or equity securities may result in reporting and
compliance obligations for such Funds
Acquisition by the Funds of equity securities and the use of take-over bids or tender offers to purchase
debt or equity securities may result in reporting and compliance obligations under Regulation 62-104
respecting Take-Over Bids and Issuer Bids (Québec) or the U.S. Securities Exchange Act of 1934, as
amended, and for equity securities, the Competition Act (Canada) or the U.S. Hart-Scott-Rodino Antitrust
Improvements Act of 1976, as amended. The costs of compliance will be borne by the relevant Fund.
The Funds are subject to inflation risks
As inflation increases, the real value of the LP Units and distributions thereon can decline. If the Funds
are unable to increase their revenues and profits at times of higher inflation, they may be unable to pay
out higher distributions to Limited Partners to compensate for decreases in the value of money, thereby
affecting the expected return to Limited Partners.
The Funds are subject to risks relating to the global economy
Many industries, including the industries in which the Funds operate, are impacted by the recent adverse
events in global financial markets which have had a profound effect on global economies. Some of the
key impacts of the 2008-2009 financial market turmoil and the current European economic slowdown
include contraction in credit markets resulting in a widening of credit spreads, devaluations and enhanced
volatility in global equity, commodity and foreign exchange markets and a general lack of market liquidity.
A continued or worsened slowdown in the financial markets or other key measures of the global
economy, including, but not limited to, new home construction, employment rates, business conditions,
inflation, fuel and energy costs, lack of available credit, the state of the financial markets, interest rates
and tax rates may adversely affect the Funds’ growth and profitability. The demand for services provided
by the operations are, in part, dependent upon and correlated to economic growth of the regions
applicable to the assets and the demand for services sought by the customers of the relevant assets.
Lower economic growth in a region or regions may, either directly or indirectly, reduce demand for the
services provided by the assets. Specifically, the global financial markets remain unstable and global
economic growth remains fragile and any adverse development in the global economy could materially
impact the cost and availability of the financing and the overall liquidity; the volatility of commodity output
prices and currency exchange markets could materially impact the revenues, profits and cash flow;
volatile energy, commodity input and consumables prices and currency exchange rates could materially
impact production costs; and the devaluation and volatility of global stock markets could materially impact
the valuation of the LP Units. Any one of these factors could have a material adverse effect on a Fund’s
condition and results of operations. If any such slowdown or adverse development in the financial market
occurs, a Fund’s operations could be adversely impacted and the trading price of the LP Units may be
adversely affected.
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Investments in new infrastructure projects during the construction phase are likely to retain some
residual risk
Investments in new infrastructure projects during the construction phase are likely to retain some residual
risk that the project will not be completed within budget, within the agreed timeframe and to the agreed
specifications and, where applicable, that such project will not be successfully integrated into the existing
assets.
During the construction phase, the major risks include a delay in the projected completion of the project
and a resultant delay in the commencement of cash flow, an increase in the capital needed to complete
construction and the insolvency of the head contractor, a major subcontractor and/or a key equipment
supplier.
Construction costs may exceed estimates for various reasons, including inaccurate engineering and
planning, labour and building material costs in excess of expectations and unanticipated problems with
project start-up. Such unexpected increases may result in increased debt service costs and funds being
insufficient to complete construction. Such increases may result in the inability of project owners to meet
the higher interest and principal repayments arising from the additional debt required.
Delays in project completion can result in an increase in total project construction costs through higher
capitalised interest charges and additional labour and material expenses and, consequently, an increase
in debt service costs. It may also affect the scheduled flow of project revenues necessary to cover the
scheduled operations phase debt service costs, operations and maintenance expenses and damage
payments for late delivery.
The experience, reputation and financial, human and technical resources of the head contractor, key
subcontractors and major equipment suppliers for a project are factors relevant in determining the
likelihood of the timely completion of the project at the stated price.
Satisfactory financial resources are necessary to support the construction contractor’s obligations relating
to liquidated damage payments, performance bonds, indemnities and self-insurance obligations.
Sufficient human and technical resources are also necessary to enable them to satisfy their contractual
requirements.
These risks are often mitigated by entering into turn-key contracts with availability and performance
warranties, liquidated damages regimes, performance bonds, indemnities and self-insurance obligations.
The Funds will structure some of the operations as joint ventures, partnerships and consortium
arrangements, which will reduce their control over the operations and may subject the Funds to
additional obligations
An integral part of the strategy of the Funds is to participate in joint ventures, jointly-held corporations,
partnerships and consortiums for single asset acquisitions. These arrangements are driven by the
magnitude of capital required to complete acquisitions of infrastructure assets and other industry-wide
trends that many observers of the industry believe will continue. Such arrangements involve risks not
present where a third party is not involved, including the possibility that partners or co-venturers might
become bankrupt or otherwise fail to fund their share of required capital contributions. Additionally,
partners or co-venturers might at any time have economic or other business interests or goals different
from the Funds. Accordingly, decisions relating to the underlying operations, including decisions relating
to the management and operation and the timing and nature of any exit, are often made by a majority
vote of the Limited Partners or by separate agreements that are reached with respect to individual
decisions. In addition, such operations may be subject to the risk that the company may make business,
financial or management decisions with which the Funds do not agree or the management of the
company may take risks or otherwise act in a manner that does not serve the Funds’ interests. Because
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the Funds may not have the ability to exercise control over such operations, the Funds may not be able to
realize some or all of the benefits that could otherwise be created.
If any of the foregoing were to occur, the financial condition and results of operations could suffer as a
result. In addition, if some of the operations are structured as joint ventures, partnerships or consortium
arrangements, the sale or transfer of interests in some of the operations may be subject to rights of first
refusal or first offer, tag along rights or drag along rights and some agreements provide for buy-sell or
similar arrangements. Such rights may be triggered at a time when the applicable Fund may not want
them to be exercised and such rights may inhibit the ability to sell the interest in an entity within the
desired time frame, at the desired price or on any other desired basis.
The Funds also may experience disputes with their joint venturers, disputes among joint venturers over
joint venture obligations or otherwise that could have a material adverse effect on the financial conditions
or results of operations of these businesses. Where assets are held through joint venture arrangements,
there may be restrictions which would not apply where an asset is wholly owned. For example, in certain
circumstances the co-owners may have preemptive and default rights over the Funds’ interests in the
underlying assets.
The Funds are subject to counterparty risks
A counterparty risk is the risk of loss due to a counterparty’s default. Counterparties are third parties that
enter into contracts either directly with any of the Funds or with any of their Portfolio Entities. The longterm financial performance of the Funds is partially dependent on the creditworthiness and performance
of counterparties with regard to a variety of agreements and arrangements. If a counterparty is unable or
chooses not to meet its obligations, financial or otherwise, the Funds may be adversely impacted.
The Funds may invest in troubled infrastructure assets
The Funds may invest in Infrastructure Assets or entities that are experiencing operational, financial or
other difficulties. Investments in these assets or entities will require more extensive time undertakings on
the part of the Funds and will carry a greater risk that a Portfolio Investment may be involved in
restructuring, insolvency or bankruptcy proceedings. In such an event, the Funds would be exposed to
the risk of a proceeding of uncertain duration and to the possibility of little or no return on their investment.
7.4.
Risks Relating to Investments in Infrastructure Assets Generally
Investing in Infrastructure Assets is subject to a variety of risks, not all of which can be foreseen or
quantified, including operating, economic, environmental, commercial, currency, regulatory, political and
financial risks. There is no assurance that the Portfolio Investments will be profitable or generate cash
flow sufficient to provide a return on, or recovery of, amounts invested therein.
An investment in any of the Funds is subject to certain risks associated with the ownership of
infrastructure and infrastructure-related assets in general, including: the burdens of ownership of
infrastructure; local, national and international economic conditions; the supply and demand for services
from and access to, infrastructure; the financial condition of users and suppliers of infrastructure assets;
changes in interest rates and the availability of funds which may render the purchase, sale or refinancing
of infrastructure assets difficult or impracticable; changes in environmental laws and regulations, and
planning laws and other governmental rules; environmental claims arising in respect of infrastructure
acquired with undisclosed or unknown environmental problems or as to which inadequate reserves have
been established; changes in energy prices; changes in fiscal and monetary policies; negative
developments in the economy that depress travel; uninsured casualties; acts of force majeure, terrorist
events, under-insured or uninsurable losses; and other factors which are beyond the reasonable control
of the Funds. Many of these factors could cause fluctuations in usage, expenses and revenues, causing
the value of the Portfolio Investments to decline and negatively affect the Funds’ returns.
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The Portfolio Investments may be exposed to higher levels of regulation than other sectors
Many of the Portfolio Investments may be subject to varying degrees of statutory and regulatory
requirements, including those imposed by zoning, environmental, safety, labour and other regulatory or
political authorities. Such Portfolio Investments may require numerous regulatory approvals, licenses and
permits to commence and continue their operations. Failure to obtain or a delay in obtaining relevant
permits or approvals could hinder construction or operation and could result in fines or additional costs for
the project entity or the Funds, loss of the Funds’ rights to operate the affected business, or both, which in
each case could have a material adverse effect on the Portfolio Investments.
Where the Funds’ ability to operate a business is subject to a concession or lease from the government,
the concession or lease may restrict the Funds’ ability to operate the business in a way that maximizes
cash flows and profitability. See under the heading “Risks relating to Investments In Infrastructure Assets
Generally – There are a variety of risks relating to public-private partnerships”.
Adoption of new laws or regulations, or changes in interpretations of existing ones, or any of the other
regulatory risks mentioned above, could have a material adverse effect on the Portfolio Investments and
on the Funds’ ability to meet their objectives.
Portfolio Investments may be subject to operating and technical risks
Portfolio Investments may be subject to operating and technical risks, including risk of mechanical
breakdown, failure to perform according to design specifications, labour and other work interruptions, and
other unanticipated events that adversely affect operations. There can be no assurance that any or all
such risk can be mitigated. An operating failure may lead to loss of a license, concession or contract on
which a Portfolio Investment may depend.
The long-term profitability of an infrastructure project, once constructed, is partly dependent upon efficient
operation and maintenance of the project. Inefficient operations and maintenance and, in certain
infrastructure sectors, latent defects in acquired infrastructure assets may adversely affect the financial
returns of the Funds.
There are a variety of risks relating to public-private partnerships
To the extent that the Funds invest in Infrastructure Assets that are governed by concession agreements
with governmental authorities (whether at the federal, provincial, state, local, municipal or other level),
there is a risk that these authorities may not be able to or may decide not to honour their obligations
under such agreements, especially over the long term. Government leases or concessions may also
contain clauses more favourable to the government counterparty than would a typical commercial
contract. For instance, a lease or concession may enable the government to terminate the lease or
concession in certain circumstances without requiring it to pay adequate compensation. In addition,
government counterparties also may have the discretion to change or increase regulation of the Funds’
operations, or implement laws or regulations affecting the Funds’ operations, separate from any
contractual rights they may have. Governments have considerable discretion in implementing regulations
that could impact infrastructure assets, and because infrastructure businesses provide, in many cases,
basic, everyday services, and face limited competition, governments may be influenced by political
considerations and may make decisions in respect of assets infrastructure that adversely affect the
Portfolio Investments.
Infrastructure assets may require substantial capital expenditures
There is a risk that unforeseen factors may require capital expenditures in excess of forecasts and a risk
that new or additional regulatory requirements, safety requirements or issues related to asset quality and
integrity may result in the need for additional capital expenditure for replacement or reinforcement of
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infrastructure assets. While the Funds intend to reasonably ensure that their purchased assets are in
good condition and appropriate ongoing maintenance is provided for, no guarantee can be given that
capital expenditures in excess of the anticipated levels will not be required.
Performance of infrastructure assets depends on the demand for the products or services
produced by such assets
The revenue generated by infrastructure and infrastructure-related assets may be impacted by the
demand of users or the number of users for the products or services produced by such assets (for
example, traffic volume on a toll road). Any reduction in demand and/or the number of users may
negatively impact the profitability of the Funds.
Further, where a business in which the Funds invest is the sole or predominant service provider in its
service area and provides services that are essential to the community, it may be subject to rate
regulation by governmental agencies that will determine the prices it may charge. Businesses in which
the Funds invest may be subject to unfavourable price determinations that may be final with no right of
appeal or which, despite a right of appeal, could result in the Funds’ profits being negatively affected.
The operations of certain energy-related infrastructure assets may fluctuate on a seasonal basis
or vary depending on meteorological conditions
Electric power generation infrastructure assets are generally seasonal businesses. Demand for electricity
is greater in summer and winter months associated with cooling and heating. The pattern of this
fluctuation may change depending on the terms of power sale contracts entered into by the Portfolio
Entities. Such seasonal variations may lead to increased or reduced revenues and profitability at various
times during the year which could affect the short term returns to the Funds.
Further, certain energy power generation facilities, such as solar and wind energy projects, are
dependent on meteorological and atmospheric conditions which are variable and difficult to predict. Actual
conditions of such a project’s location, even after feasibility assessments, may not perform sufficiently to
meet projected energy generation levels, which could adversely affect the Funds.
Infrastructure assets may be subject to additional risks as strategic assets
Portfolio Investments in public infrastructure may be in assets that constitute significant strategic value to
public and/or governmental bodies. The very nature of these infrastructure assets could generate
additional risks not common in other industry sectors. Given the national or regional profile and/or their
difficult-to-replace nature, such strategic assets may constitute a higher risk target for terrorist acts or
political actions. Given the essential nature of the services provided by public infrastructure assets, there
is also a higher probability that the services provided by such assets will be in constant demand. Should
an owner of such assets fail to make such services available, users of such services may incur significant
damage and may, due to the characteristics of the strategic assets, be unable to timely obtain alternate
source(s) of supply of such service or to mitigate any such damage, thereby heightening any potential
loss from third-party claims against the Funds for such failures.
The Funds may be exposed to uninsurable losses and force majeure events
The Portfolio Investments may be subject to catastrophic events and other events of force majeure during
their construction, technical and/or operational phases. These events could include fires, floods,
earthquakes, adverse weather conditions, expropriation, strikes, wars, riots, terrorist acts, acts of God and
similar risks. These events could result in the partial or total loss of a Portfolio Investment (for example, a
bridge could be destroyed in a catastrophe) or significant down time resulting in lost revenues, among
other potentially detrimental effects. Some force majeure risks are particularly difficult to insure and in
certain cases may not be insured in and, in some cases, project agreements can be terminated if the
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Section 7.0 – Certain Risk Factors
event of force majeure event is so catastrophic that it cannot be remedied within a reasonable time
period.
While the Funds will seek to utilize insurance and other risk management products (to the extent available
on commercially reasonable terms) to mitigate the potential loss resulting from reasonably foreseeable
catastrophic events and other risks customarily covered by insurance, this may not always be practicable
or feasible. Moreover, it may not be possible to insure against all such risks, and insurance proceeds may
be inadequate. In general, losses related to terrorism are becoming more difficult and expensive to insure
against, as many insurers are excluding terrorism coverage from their all-risk policies.
Performance of the Portfolio Entities may be harmed by future labour disruptions
The transfer of services from the public to private sector entails a potential for labour action at the time of
transfer and possible ongoing labour disputes. The transfer of services from the public to the private
sector may require that existing negotiated labour agreements be observed. However, even where such
agreements are adhered to, it is always possible that labour action may arise as a result of perceived
changes in the relationship between the existing workforce and its employer as a result of the transfer of
the services to private ownership.
The Funds are subject to occupational health and safety accident risks
Health and safety is a key risk area in the operation and maintenance of many infrastructure assets.
Costs associated with the failure to adequately protect the health and safety of workers in and users of
infrastructure assets could adversely impact the Funds.
The Funds may be adversely affected by potential environmental liabilities
Under various applicable laws, ordinances and regulations, an owner of infrastructure assets may be
liable for the costs of removal or remediation of certain hazardous or toxic substances on, in or released
from, such assets. Such laws, ordinances and regulations often impose liability without regard to whether
the owner knew of, or was responsible for, the presence of such hazardous or toxic substances. The cost
of any required remediation and the owner’s liability therefor as to any property is generally not limited
under such enactments and could exceed the value of the property and/or the aggregate value of the
assets of the owner. Environmental liabilities may arise as a result of a large number of factors, including
changes in laws or regulations, accidental releases, and the existence of conditions that were unknown at
the time of acquisition or operation.
Any liability resulting from noncompliance or other claims relating to environmental matters could have a
material adverse effect on each of the Funds’ performance.
The Funds may be subject to rate risks
The Funds may invest in Infrastructure Assets that derive substantially all of their revenues from tolls,
tariffs or other usage fees. Users of the applicable service may react negatively to any adjustments to the
applicable rates, or the public may cause relevant government authorities to challenge such rates. In
addition, adverse public opinion, or lobbying efforts by specific interest groups, could result in
governmental pressure on a Portfolio Entity or a Fund to reduce its rates, or to forego planned rate
increases.
Infrastructure Assets are illiquid
Although the Portfolio Investments may generate some current income, they are expected to be generally
illiquid. In addition, public sentiment and political pressures may affect the ability of the Funds to sell one
or more of their Portfolio Investments. As a result, it may be difficult from time to time for the Funds to
realize, sell or dispose of a Portfolio Investment at an attractive price or at the appropriate time or in
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response to changing market conditions, or the Funds may otherwise be unable to complete a favourable
exit strategy. Losses on unsuccessful investments may be realized before gains on successful
investments are realized. Although some Portfolio Investments may generate operating income, the full
return of capital and the realization of gains, if any, will generally occur only upon the partial or complete
disposal of a Portfolio Investment. Additionally, income from some Portfolio Investments will not be
realized until a number of years after they are made. Prospective Limited Partners should therefore be
aware that they may be required to bear the financial risk of their investment for an indefinite period of
time.
The Funds may hold securities or other instruments issued by a Portfolio Entity. Such instruments are
generally not publicly traded and the Funds generally will not invest in securities that are publicly traded.
Such securities and instruments are generally not qualified by a prospectus for Canadian securities law
purposes or registered under the US Securities Act and can generally be resold only in privately
negotiated transactions or in a public offering qualified by a prospectus filed with the relevant securities
regulatory authorities. Considerable delay in resale could be encountered in either case and, unless
otherwise contractually provided for, the Funds’ proceeds upon their sale may be reduced by the costs of
registration or underwriting discounts. The difficulties and delays associated with such transactions could
result in the Funds’ inability to realize a favourable price upon disposition of unlisted securities or
instruments, and at times might make disposition of such securities and instruments impossible. In
addition, certain listed securities and instruments may from time to time lack an active secondary market.
In the absence of an active secondary market, the Funds’ ability to sell such securities at a fair price may
be impaired or delayed.
Certain Infrastructure Assets may be exposed to native title and indigenous rights risks
Any declaration of native title or other indigenous rights in respect of land on which infrastructure assets
are located may adversely affect the owner or occupier of that land. This may include any of the Funds as
the occupier of land on which a project is located.
7.5.
Risks Relating to Taxation
Changes in tax law and practice may have a material adverse effect on the operations and, as a
consequence, the value of the assets and the net amount of distributions payable to the Limited
Partners
Any change in tax legislation (including in relation to taxable and non-taxable entities, taxable income,
taxable capital, taxable transactions, tax withholdings, commodity taxes, taxation rates, etc.) and practice
in Canada or the United States could adversely affect the Funds and the Portfolio Entities through which
the Funds will invest in Portfolio Investments, as well as the net amount of distributions payable to the
Limited Partners. Furthermore, the manner in which the Funds seek to structure acquisitions is dependent
on the tax legislation and practice applicable at that time in the relevant jurisdiction. This may mean that it
will be difficult for the Canadian Fund or the US Fund to carry out acquisitions in certain asset classes in
its relevant territory for a period of time. This may also mean the Funds may have to dispose of certain
assets at certain points in time when the fair market value of such assets is not maximized.
The Funds’ ability to make distributions depends on them receiving sufficient cash distributions
from the underlying operations and there is therefore no assurance that the Funds will be able to
make cash distributions to their Limited Partners in amounts that are sufficient to fund their tax
liabilities
Each of the Limited Partners, including the US Blocker, of any of the Funds will be required to include in
its income its allocable share of such Fund’s items of income, gain, loss, deduction and credit for each of
the taxation years ending with or within such Partner’s taxable year or, in some cases, it will have to
include in its income an estimate of what would be its share of a Fund’s income for part of a year. With
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Section 7.0 – Certain Risk Factors
respect to each of the Limited Partners, the cash distributed to a Partner may not be sufficient to fund the
payment of the full amount of such Partner’s tax liability in respect of its investment in the Funds since
such Partner’s tax liability is dependent on its particular tax situation and the General Partners will make
simplifying tax assumptions in determining the amount of the distribution by the Fund in which it invests.
In addition, the actual amount and timing of distributions will always be subject to the discretion of the
relevant General Partners or US Blocker’s board of directors and there is therefore no assurance that the
North American Fund will in fact make cash distributions as intended. Even if the Funds are unable to
distribute cash in an amount that is sufficient to fund their Partners’ tax liabilities, each of Partners will still
be required to pay income taxes on its share of the relevant Fund’s taxable income.
The Limited Partners that invest indirectly in the US Fund through the US Blocker (through the
North American Fund) or directly through their individual corporate blockers will be subject
indirectly to U.S. corporate and withholding taxes with respect to income and distributions from
the US Fund which may reduce distributions to the Limited Partners from the North American
Fund or the US Fund.
Income or gains from the holdings may be subject to withholding or other taxes in jurisdictions outside the
Limited Partners’ jurisdiction of residence for tax purposes or in which they are not otherwise subject to
tax. If any of the Limited Partners wish to claim the benefit of an applicable income tax treaty, such
Limited Partners may be required to submit information to the Funds and/or the tax authorities in such
jurisdictions.
All of the income derived by the US Blocker or an individual corporation wholly owned by a Limited
Partner from its holdings in the US Fund will be subject to U.S. federal income taxation and state and
local income taxation, depending upon the location of the investments held by the US Fund. The North
American Fund intends to capitalize the US Blocker with debt obligations with a debt to equity ratio not to
exceed 3:1 since interest payments made by the US Blocker generally will reduce the taxable income of
the US Blocker. However, no assurance can be given that the interest paid or accrued on the debt
obligations of the US Blocker will be deductible or will offset substantially all of the income of the US
Blocker. In addition, dividends paid by the US Blocker to the North American Fund will generally be
subject to a 15% U.S. withholding tax under the U.S. – Canada Income Tax Treaty but will be reduced to
5% in the case of Limited Partners that own 10% or more of the North American Fund’s LP Units and 0%
in the case of certain Canadian tax exempt Limited Partners in the North American Fund.
Presently, Limited Partners will not be required to file U.S. federal, state or local income tax returns with
respect to the US Blocker but taxes paid by the US Blocker may not be creditable against taxes imposed
on the Limited Partners in other jurisdictions.
As previously noted, the US Blocker, as a Partner in the US Fund, will be required to include in income its
allocable share of the US Fund’s items of income, gain, loss, deduction and credit for each of its taxable
year. No assurance can be given that the cash distributed to the US Blocker by the US Fund will be
sufficient to fund all of the US Blocker’s tax liability. The calculations of the taxable income of the US
Blocker are always subject to challenge by the U.S. tax authorities. Such challenge may result in higher
amount of income and in penalties and interest for a Limited Partner in Canada and in the United States.
Penalties and interest payable by a Partner, a Fund or a Portfolio Entity may not be deductible for tax
purposes.
A Limited Partner may be subject to taxation in more than one jurisdiction on some sources of income
derived from its investment in the structure. Such double taxation may not be fully compensated by any
foreign tax credit or other applicable mechanism.
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Section 7.0 – Certain Risk Factors
Limited Partners will be taxable on the disposition or deemed disposition of the US Blocker.
Substantially all of the assets of the US Blocker will consist of its interest in the US Fund which will invest
in projects consisting largely of interests in United States real estate or in partnerships owning such
interests. Accordingly, it is anticipated that the US Blocker’s stock will be classified as a United States
real property interest (“USRPI”) because more than 50 percent of the fair market value of the US
Blocker’s total assets are United States real property interests. So viewed, a gain from the disposition (or
deemed sale or disposition in connection with the redemption of a Limited Partner’s U.S. LP Units in the
North American Fund) of the US Blocker’s stock will be treated as U.S. source income effectively
connected with the conduct of a U.S. trade or business and Limited Partners will be taxable in the United
States at a 35% rate on such gain. Similarly, certain distributions by the US Blocker to the North
American Fund which are in excess of its basis in the US Blocker will be treated as the sale or disposition
of the shares of the US Blocker, resulting in U.S. source effectively connected income, taxable at a 35%
rate. In addition, the transferee will be required to withhold tax at a 10% rate on the gross amount of the
sale proceeds. The Treaty does not reduce or eliminate the foregoing tax.
Taxation laws or the interpretation thereof are susceptible to change
The tax rules and their interpretation in relation to an investment in the Funds may change. Further, the
tax rules or their interpretation in relation to the Funds’ Portfolio Investments may also change. In
particular, these changes may affect both the level and basis of taxation. Changes that affect the Funds’
investments may affect their distributions resulting in their business being adversely affected. In addition,
an investment in the Funds involves tax considerations that may differ for each Limited Partner. Each
Limited Partner is encouraged to seek professional tax advice in connection with any investment in any of
the Funds.
Change in tax status of a Limited Partner may have an adverse tax consequence on such Limited
Partner and on the other Limited Partners
To the extent that a Limited Partner’s tax status changes for the purposes of any applicable tax statute or
tax treaty, it may be subject to taxes in the jurisdiction in which such statute is in force in connection to its
investment in the Funds. Taxes payable in the said jurisdiction in this occasion may not be covered by
any distribution by a Fund and serious cash flow issues may arise. Furthermore, in investing in a Fund or
in holding LP Units in a Fund, a Limited Partner may incur taxes or penalties resulting from its special tax
status which may result in reduced benefits from the Limited Partner’s investment in the Fund and
possibly hardship.
The tax consequences of an investment in a Fund and of the disposition of such investment by a Limited
Partner may vary negatively because of the tax status or because of the identity of one or more other
Limited Partners in the Fund. Considering that the identity of the Limited Partners will most likely change
over time, these negative tax consequences may materialize after the acquisition of LP Units in a Fund by
a Limited Partner. Negative tax consequences may also result in any jurisdiction from the change in tax
status of any entity in which a Fund holds an interest directly or indirectly.
Limited Partners may be subject to federal income tax in excess of cash proceeds distributed by a
Fund.
Taxable income allocable to the Limited Partners and the associated tax liability may exceed the cash
distributions made to the Limited Partners in particular years. This result may arise for a number of
reasons, including the use of cash flow to fund reserves or to amortize debt, and may arise in situations
where a Fund is operating at an overall loss due in part to the inability of Limited Partners to apply certain
losses (which may be treated as passive losses) against income which is characterized as portfolio
income. To the extent cash distributions made to a Limited Partner during or with respect to a period are
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less than a Limited Partner’s income tax liability attributable to a Fund, payment of such tax will result in
an additional out-of-pocket expense to that Limited Partner.
Percentage of ownership in the Funds and indirectly in the Fund’s Portfolio Investments may have
an impact on the tax consequences of the investment for a Limited Partner
The percentage of participation of a Limited Partner in a Fund will most likely vary over time. The tax
consequences of an investment in the Funds by a Limited Partner may depend on the percentage of
ownership of a Limited Partner in the Funds and indirectly in the Portfolio Investments. The thresholds
below or above which the tax consequences of a Limited Partner’s investment will change may be passed
by a Limited Partner many times in the period of time through which the Limited Partner will hold an
interest in the Funds. It is not possible to offer any guarantee to a Limited Partner on the fact that the tax
consequences of such partner’s investment will not change due to such fluctuations nor that they will not
become less advantageous due to such fluctuations.
Tax-exempt Limited Partners may recognize unrelated business taxable income.
Tax-exempt Limited Partners may participate in a Fund. Such Limited Partners should be aware,
however, that the Fund’s activities will generate “unrelated business taxable income.” An investment in a
Fund may not be suitable for certain tax-exempt Limited Partners. Tax-exempt Limited Partners should
consult their own tax advisors concerning the implications to them of being required to recognize
unrelated business taxable income.
7.6.
Certain Conflicts of Interest
Conflicts of interest, generally
Limited Partners should be aware that there will be instances in which the General Partner, the Canadian
Manager, the US Manager and their affiliates or clients will experience actual conflicts of interest with the
Funds, and in other cases may encounter potential conflicts of interest in connection with the activities of
the Funds. The below discussion enumerates certain such actual and potential conflicts of interest that
should be carefully evaluated by any prospective Limited Partner prior to their making an investment in a
Fund. By acquiring a partnership interest in any of the Funds, a Limited Partner will be deemed to have
acknowledged the existence of such actual and potential conflicts of interest and to have waived any
claim with respect to the existence of any such conflicts of interest.
The Managers of their affiliates may allocate certain opportunities to other funds
The Canadian Manager also acts as the manager of FAICLP. In addition to FAICLP, the Canadian
Manager, the US Manager and any of their affiliates may in the future also advise additional clients with
similar investment strategies (together with FAICLP, the “Other Fiera Axium Funds”). Each of the
Canadian Manager and the US Manager have instituted and will seek to adhere to policies with respect to
the allocation procedures for investment opportunities to endeavor to treat the Funds and the Other Fiera
Axium Funds in a manner it considers fair, based upon all relevant factors. No individual Limited Partner,
however, will have the right to review and approve the determinations of the Canadian Manager and the
US Manager, with respect to allocation of investment opportunities and no assurance can be provided
that one or more Funds will not make proportionate, or any, investment in each investment opportunity
presented to the Canadian Manager and the US Manager that may be within its investment objective.
Under certain circumstances, the performance of a Fund may be adversely affected by a small, or lack of
any, participation in any given investment opportunity.
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Section 7.0 – Certain Risk Factors
Related party transactions and activities of certain affiliates of the General Partners could conflict
with Limited Partner interests
It is foreseeable that affiliates of the Canadian Manager and the US Manager may be presented with the
opportunity to enter into investment transactions or arrangements that present conflicts of interest with
respect to the Funds or the Limited Partners. For example, the Canadian Manager or the US Manager
may represent, or indirectly be, a counterparty to the Funds, insofar as FAICLP may sell certain of its
existing assets to the Funds at the termination of FAICLP, on terms and for consideration that will be
determined by the General Partners to be fair and reasonable to the applicable Fund. Conversely, under
certain circumstances, such as upon its liquidation or in response to redemption requests, a Fund may
find itself in a position of selling to an affiliate of the Canadian Manager.
In addition, affiliates of the Canadian Manager or the US Manager may also perform services for Portfolio
Entities that may result in the payment of fees to such affiliate. The Canadian Manager and the US
Manager are not prohibited from reallocating their resources away from the Funds to pursue these and
other forms of commercial or other activities.
Any such related party transaction will be subject to restrictions and disclosure procedures described in
the Limited Partnership Agreements. While the substantial Capital Commitments being made by the
Canadian Manager and the US Manager are intended to align the interest of the Canadian Manager and
the US Manager (and their affiliates) to those of the Limited Partners, the existence of these types of
conflicting transactions may have a material adverse effect.
Incentive Fee and Management Fees
Each of the General Partners’ right to receive the Incentive Fee may create an incentive for such General
Partner to make more speculative investments for a Fund than it would otherwise make in the absence of
such performance-based distributions.
Material Non-Public Information
By reason of their responsibilities in connection with the Funds and other activities, including but not
limited to participation in the management of portfolio companies, personnel of the Managers may acquire
confidential information that they will not be able to use for the benefit of one or more of the Funds. Due
to these restrictions, however, one or more Funds may be restricted from initiating a transaction it
otherwise might have initiated and/or selling an investment that it otherwise might have sold.
Diverse limited partner group may have conflicting interests
The Limited Partners may have conflicting investment, tax and other interests with respect to their
investments in a Fund. Limited Partners could include, but are not limited to, tax exempt Limited Partners
(e.g., corporate and public pension funds, endowments and foundations) and taxable Limited Partners
(e.g., insurance companies and high net worth individuals and entities). The conflicting interests of
individual Limited Partners may relate to or arise from, among other things, the structuring or the
acquisition of investments, the amount or nature of taxable income with respect to an investment and the
use or availability of tax credits for a deferral of taxable income and the timing of disposition of
investments. As a consequence, conflicts of interest may arise in connection with decisions made by the
General Partners, the Canadian Manager or the US Manager (including with respect to the nature or
structuring of investments) that may be more beneficial for one Limited Partner than for another Limited
Partner, especially with respect to Limited Partners’ individual tax situations. In selecting and structuring
investments appropriate for a Fund, the applicable General Partner will consider the investment and tax
objectives of the applicable Fund and its Partners as a whole, not the investment, tax or other objectives
of any Limited Partner individually.
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