As a rule, the fund does not seek controlling share ownership in a firm. With government approval, temporary control may happen in some circumstances, such as worker or manager buyouts or when a project encounters short-term financial distress.
The flow of opportunity referrals to Working Opportunity is similar to that of other venture capital institutions. In 1994, the fund was sufficiently large to leverage syndication in financing projects. As well, it is disposed to entering transactions negotiated and structured by other financial institutions. In the fund's present portfolio, over 80 percent reflect co-investment. For instance, the medical technologist Automed Corporation is a $6 million deal involving five other domestic and international partners that introduced various expertise, market access and other qualities.
Other important sources of possible deals include BCFL affiliated unions and members and the client bases of commissioned investment agents. Over a recent eighteen month period (embracing 1994), Working Opportunity received and processed 375 financing requests and proposals from all parts of British Columbia.
The fund is currently experimenting with models for more localized and specialized financing. For instance, it has contributed to the $4 million Strathcona Community Futures Development Corporation which lends to micro-enterprises in central British Columbia and northern Vancouver Island. Fund officers say a network of similar funds will be supported in provincial communities and regions.
Integrated with Working Opportunity's financial audit is an accounting of the social performance of a potential investee firm. Issues examined include incidence of participative decision-making structures; progressive policies in human resource management; support for local communities; environmental protection practices; and systems for ensuring product quality.
Working Opportunity also advocates employee financial participation and ownership through its investment process. The fund seeks the agreement of firm owners to offer up a portion of total equity (e.g., 10 percent) for purchase by workers, immediately or in the future.
It is intended that Working Opportunity deliver a training program for workers (and some managers) in investee firms comparable to that of the Fonds de solidarité.