NVCC invests in Native business ventures

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"Current economic conditions probably affect us more than other companies," states Milt Pahl, president of Edmonton-based Native Venture Capital Co. Ltd.

Pahl is a former MLA and Alberta minister responsible for Native Affairs.

"Our management team is still in the learning stage in what is a unique Canadian venture, and we could be affected more because we haven't yet had the benefit of years

of experience from which to learn."

Native Venture Capital (NVCC) is a company that provides a source of financing for potentially viable Alberta Native business prospects. The term "Native' refers to any Alberta resident who is of Native descent and includes all status and non-Status Indians and Metis.

The NVCC is controlled by the 13 shareholders who joined together as partners

to create the company.

A total of 29 voting shares are distributed among the 13 partners.

The largest shareholder is the Alberta Government with 10 voting shares. Esso Canada and Gulf Oil have 3 shares each while Shell Canada, The Royal Bank and Trans-

alta Utilities have 2 a piece. Partners with single shares are Alberta Power, Bow Valley Industries, Interprovincial Pipleline, Nova, Pan Canadian Petroleums, R. Angus, and Hobbema' Samson Band.

NVCC joins sound business ideas from Alberta Native entrepreneurs with the financing needed to turn those ideas into reality.

In most of its investments NVCC takes the policy of seeking a minority interest (10% to 50%) in the portfolio company.

This means that the business or individual seeking partnership with NVCC must be willing and able to provide the major portion of funds required. Other forms of debt or equity participation, however, will also be considered. Co-investors are also encouraged to participate.

Since its conception in September of 1983, NVCC has invested about $2.1 million in 17 Alberta Native business ventures.

NVCC investments are spread across Alberta. Resource development includes

a moccasin factory on the Peigan Reserve and a tourist lodge in Fort Chipewyan. The company has also invested in such things as hotels, motels, dry cleaners, trucking and construction companies.

Enterprises most sought after by Milt Pahl and his assistant and office manager, Jo-Anne House, are those ventures operating in remote areas where strong resource activity can help in the development of good spin-off business opportunities. Especially important is the ability of a company to create employment for Native people and to hasten the goal of economic self-sufficiency for Alberta's Native community as a whole.

"We are set up to help existing Alberta Native companies and those interested

in new business ventures," says Pahl.

"We help them to capitalize on sound business opportunities; we expect to earn

a reasonable risk-adjusted rate of return and we hope that eventually the successful entrepreneur will own 100% of his business. We invest by purchasing shares in the company, then we sell them back after the economic goals have been met.

"We are not in the business to own other businesses. Our aim is to support solid prospects and helped them to grow and succeed.

"We rely on our close working relationship with bankers, accountants, administrators, etcetera, as they play an important role in the formula needed to make

a business venture succeed."

NVCC's board of directors plays a major role in the development of success.

"I'm really impressed by the board," said Pahl.

"They're business-oriented people who come from a wide variety of professional backgrounds.

"They provide invaluable expertise and experience which is extremely helpful in planning a successful future for our clients."

The 13-member board includes a broad range of senior industry executives as well as government, Indian and Metis representatives.

The chairman of the NVCC Board of Directors is Nova Corporation Senior Vice President Bob Snyder.

Snyder brings a lot of talent into the NVCC. His employment background include a position with the Northern and Central Gas Corporation (1958-1976) where he was the senior vice president in charge of everything from construction to over-all operations.

He joined Nova in 1976 where his skills have been utilized in areas including Alberta Gas Trunk Line, the Alaska Project Division, and Foothills Pipe Lines (Yukon) Ltd. He has held his present position since 1982.

"With input from senior management people like Bob Snyder we have the excellent built-in source of talents required to make things work,"says Pahl.

Deputy Chairman of NVCC is Ken Littlewood, currently vice president of the Royal Bank. Other board members include Roy Louis, chjairman of Peace Hills Trust; Lorna Jardine, a well-known Calgary horticulturist, and Jerome Morin, former chief of the Enoch Band.

"We welcome all Alberta Native entrepreneurs who are either interested in expanding their current operation, or have a viable plan for a new venture," says Pahl.

Current potential investments areas include pipeline activity, transportation, personal services and manufacturing.

In order to quality for business assistance, clients are required to submit a proposal to the NVCC with an outline which must include evidence of viability.

If your company is one of those that quality (1 in 100 make it) you will have the chance to turn your dreams into reality.

In most instances, the anticipated time of NVCC investment is under 10 years. To date only two companies have failed and another, Roy and Ray's Auto Body of Calgary, has not only succeeded but has bought its shares back from NVCC as well.

For further information on NVCC services call (403) 453-3911, or write 11738 Kingsway Avenue, Edmonton, T5G 0X5.