CAPE fund speaks to Aboriginal business: up to 10 entrepreneurs to benefit from Paul Martin-led initiative.

• Author: Stewart, Nick
• Position: NEWS - Capital for Aboriginal Prosperity and Entrepreneurship

A plan by former prime minister Paul Martin to provide Aboriginal businesses across Canada with a $50 million helping hand through a special private investment fund is being met with approval from First Nations in Northern Ontario.

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"This is very good news to me, and although it takes time to build that entrepreneurial capacity, this could be a great thing for our communities," says Constance Lake First Nation Chief Arthur Moore, about the recently announced CAPE Fund.

Moore, whose reserve of 800 has its own hauling and logging company, knows a thing or two about entrepreneurship. Between its various business endeavors, the community generates up to $6 million annually.

"With forestry in a slump, we need all the opportunities we can to foster self-sufficiency and self-reliance to create a better, healthier community."

The Capital for Aboriginal Prosperity and Entrepreneurship, or CAPE Fund, is being launched by Martin and his son, David.

While this unique equity fund will provide investors with a return on their investment, the goals are loftier than mere revenue, according to CAPE Fund managing director Peter Forton.

More importantly, it seeks to provide the broader Aboriginal community with tangible and lasting social benefits through the encouragement of entrepreneurship and the cultivation of high-level management skills, he says.

The fund, which builds on Paul Martin's longstanding passion for Aboriginal issues, is backed by Canada's five major banks as well as familiar Northern Ontario faces such as Xstrata Nickel, Vale Inco and Goldcorp.

It will focus on projects linked through ownership, employment or geographic proximity to an Aboriginal group or community in order to promote Aboriginal business, entrepreneurship and prosperity.

Investments will range from $1 million to $7.5 million, which may occur in one or more rounds of investment.

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However, most are expected to be in the range of $3 million to $5 million, and will last from six to nine years before being sold back to the various Aboriginal owners.

"This model has to work," says Forton, who adds that, since the announcement, his phone has been ringing off the hook with groups and companies looking to be considered for investment.

"It's a very unique model, but we're all very aware that there's going to be a lot of people watching this and I think we have to be successful, and it's very important that this fund is successful."

To be...