Time to spinoff the BDC part 2
If private equity firms are interested in acquiring a student loan provider, then perhaps spinning off the lending function of the Business Development Bank isn’t a crazy idea, after all.
To date, the feedback we’ve received has been universally in favour of the idea.
Having recently spoken to one of the federal team that privatized Air Canada, Petro-Canada, CN, and so forth, his view was that the only reason why the BDC wasn’t done as well (circa 1989) was the fear that the nation was going into a recession. And the value wouldn’t be there as a result. Looking out today, however, those headwinds don’t seem to be on the horizon.
What’s holding the Finance Minister back?