Horner loving life out of politics
The calendar says it has been 10 months since former Alberta finance minister Doug Horner abruptly ended his 14-year political career by calling it quits, but I swear that must be wrong.
So much has changed, I’m pretty sure modern gizmos like the telephone and the internal combustion engine had yet to be invented back in January.
According to the history books, a fellow named Jim Prentice — the latest in a long line of Tory leaders dating back to the 1970s — was still Alberta’s premier, and a Conservative bloke named Stephen Harper ran the country.
A little-known MLA named Rachel Notley was one of four NDP stragglers in the legislature, Justin Trudeau’s Liberals held fewer than 40 seats in Parliament, and the Edmonton Oilers were mired at the bottom of the NHL standings.
OK, ignore that last bit. Apparently some things never change.
Anyway, like Canada’s utterly transformed political landscape, much has changed for Horner — a four-term Progressive Conservative MLA who once served as deputy premier — since he left the world of politics.
Two months after his exit, Horner joined hands with 10 other partners who boast extensive experience in business, law, academia and government to form Canada Asia Synergy Group, an Edmonton-based firm that is chasing business deals in China.
Judging from Horner’s relaxed, upbeat demeanour, he’s thrilled to be back in the private sector and pleased with the steady progress the new company has made.
“I love it,” he says. “Our hearts are here in Canada and Alberta, but we recognize that the biggest opportunity this country has is China,” where an increasingly affluent, rapidly growing middle class is powering demand for everything from food and energy to pharmaceuticals and medical devices.
The advisory services firm has deals in the pipeline, at varying stages of fruition, and has forged relationships with some key Chinese venture capital funds, state agencies and other groups.
“We have a significant network of key contacts in a broad range of industries and we leverage those networks to generate business for ourselves and our clients,” says Horner, the company’s chairman.
“So if you’re going to Guangzhou to find a manufacturer of heavy equipment, we can help you do that. And if you’re looking to attract investment in China, build something in China for export, export to China, or if you’re looking for someone to buy your company and move you to China, we want to talk to you.”
One of the most promising ventures is with Shanghai-based Jiu You Capital. The investment group, backed by Japan’s Nomura Holdings and several Chinese partners, is looking to invest in promising development-stage Canadian companies.
“Jiu You is actively looking to invest in companies in the $10-million to $30-million range, and we have nine companies in the pipeline right now, including a couple from the MaRS Discovery District in Toronto,” he says.
“This is an aggressive investor. They want to protect these companies’ IP (intellectual property) and replicate it, but not move the companies there. Frankly, we’re looking for deal flow. It’s about a $1-billion fund and their targets are in alternative energy, environmental solutions, nutraceuticals, agriculture, health care — all the areas we’re good at here.”
One of the obvious reasons why Alberta companies should be looking to China is to access a market that has far bigger scale than the domestic market will ever be able to offer.
“If you’re a medical device company and you’re struggling to sell your product here because you only have one buyer in Alberta and one in Saskatchewan, and you want to hit 500 hospitals, well (Jiu You’s investors) already control 500 hospitals in China,” he says.
Horner’s partners include senior Cargill executive Bill Buckner; former Suncor Energy chairman John Ferguson; Cameron Developments founder Jerry Naqvi; and David Tam, a partner with the law firm Parlee McLaws. The firm also has associates in Canada and China, including Edy Wong, an adviser at Herald Capital in Beijing.
“I love it. For me, it’s about doing deals and working with great people. Everyone around the table has expertise that’s phenomenal,” Horner says.
“There are some people who leave politics and have a bit of difficulty with it, but in my case it was a bit different. I chose when I left. Maybe the last year or two was a challenge, but I had 12 years when I think I contributed to the province and did some good work. So when I left I felt good about what I’d done.
“Plus, I already knew where I was going, so that makes a big difference. Some guys take time off when they leave politics and that can be good or bad. For me, that would have been terrible. I need to keep working and I need to keep active.”
