Generally speaking, the Crocus Fund will conclude (after also finishing its social audit, et al — see below) with an equity infusion of between 10 and 40 percent and representation on the board of directors. Fund officers anticipate it will look to exit investments after five to seven years.
The Crocus Fund will probably not assume more temporary majority control situations than other labour-sponsored funds, despite its worker ownership mandate. This is because leveraging buyouts for workers and managers will most likely occur as the fund is disposing of its equity stake.
The Crocus Fund receives a flow of investment referrals in a manner similar to other venture capital institutions. Beginning in 1995, the fund is also sizeable enough to start leveraging financial syndication and to join in transactions determined by other institutions.
A substantial amount of data about potential opportunities also come from MFL affiliated unions and members and from the clients of commissioned investment dealers and brokers. Over 1993-94, it is estimated that the Crocus Fund received and processed over one hundred financing requests and proposals from across Manitoba.
The fund is currently examining models for more specialized financing (that may include co-investment) developed by the Fonds de solidarité and Working Ventures.
Integrated with the Crocus Fund's financial audit is an accounting of the social performance of a potential investee firm (as distinct from other measures to advance participative management). Issues examined include progressive policies in human resource management and employment equity; improved labour relations; environmental protection practices; and health and safety standards.
Another unique complement to the financial audit is fund measurement of a potential investee firm's organizational culture and disposition to advanced systems of participative management. Once employer receptivity to change is attained, fund officers conduct a review of strengths and weaknesses according to job flexibility, training, decision-making structures, employee financial participation, etc.
Once an assessment is completed, the Crocus Fund will help design a plan for implementing innovations.