Cedar Leaf Capital, poised to be Canada's first majority Indigenous-owned investment dealer, is a joint venture between Scotiabank and three Indigenous groups. The company will provide financial advisory services and focus on underwriting Canadian fixed income securities.
A New Agreement
Scotiabank has entered into an agreement with two Indigenous development corporations and one First Nation to seek regulatory approval to create and operate a new investment dealer in Canada. The proposed investment dealer, to be named Cedar Leaf Capital Inc. (“Cedar Leaf Capital”), will be majority-owned by three Indigenous shareholders: Nch’kay’ Development Limited Partnership, Des Nedhe Financial LP and Chippewas of Rama First Nation and controlled initially by Scotiabank.
Subject to regulatory approval, Cedar Leaf Capital will be the first-to-market majority Indigenous-owned investment dealer in Canada. At formation, 70% of the equity of Cedar Leaf Capital will be owned by its three Indigenous shareholders, directly or indirectly, apportioned ~23.3% to each. It is intended that Cedar Leaf Capital will become wholly Indigenous-owned, controlled and operated in the future. Until such time, the firm’s operations will leverage Scotiabank’s infrastructure and core enterprise frameworks as it develops its self-sustaining operations. Once achieved, and subject to further regulatory approval, Scotiabank intends to facilitate an orderly transition to reduce the Bank’s controlling interest in the entity.
Empowering Indigenous Finance with Leadership and Expertise
With necessary approvals, Cedar Leaf Capital will commence operations as an investment dealer and offer institutional clients in all provinces and territories of Canada financial advisory services with a particular focus on acting as a placement agent or underwriter of Canadian fixed income securities offerings.
Clint Davis will be appointed CEO of Cedar Leaf Capital. Clint is Inuk from Labrador and a Beneficiary (member of the community) under the Labrador Inuit Land Claim Agreement. Clint has more than 20 years of experience with financial institutions and Indigenous organizations in Canada, driving a strategic vision that advances Indigenous development corporations and businesses, and advising Indigenous communities and development corporations on economic development and capacity building opportunities.
Beyond Traditional Finance
As the first Indigenous owned and led investment dealer in Canada, Cedar Leaf Capital’s objectives will extend beyond those of a traditional market intermediary. An Indigenous-owned and led investment dealer will foster greater Indigenous participation in the capital markets, create commercial opportunities for Indigenous communities, and partner with established market participants to assist them in meeting their reconciliation commitments.
