Building Nation-led prosperity: How Indigenous equity partnerships take shape

Across the country, Indigenous Nations are increasingly engaging in building their business portfolios — from real estate developments, to service company joint ventures, to equity in large-scale development projects. We are also seeing these opportunities continue to increase in volume, size, and complexity.

In recent years, we’ve seen this happen for four key reasons:

1. Corporate Canada has realized that rights recognition is certainly not enough and that the Indigenous Nations on whose territory they are located must also benefit economically and meaningfully from their operations.
2. Indigenous leaders have long advocated for increasing access to capital to fund their economic ventures and many government loan guarantee programs and other creative financing solutions have begun to be instituted.
3. Many private companies have realized that they must form meaningful Indigenous business partnerships in order to gain a competitive advantage in their industry and respond to changing procurement standards that mandate Indigenous inclusion, and
4. Most importantly, Indigenous Nations are increasingly seeking to grow their economies through private investments.

These four factors have created a surge of joint venture and equity opportunities being pitched to Indigenous Nations. For Nations, that means opportunities will continue to come faster and at a larger scale.

Start with vision, build from there

Deciding whether to pursue joint ventures or equity investments — and ensuring their long-term success — requires more than opportunity: it calls for vision, structure, and a transparent process grounded in Nation priorities.

These three key tips can help shape the vision of your Nation:

1. Set clear goals — Set clear long-term economic goals through strategic plans, investment policies, community-led engagement, and planning. Visions tend to share a common objective of achieving financial sovereignty paired with receiving other community benefits such as employment, training, and procurement opportunities. Of course, each Nation’s path is unique, shaped by its culture, values, risk tolerance, and community priorities.
2. Establish strong governance — Rather than jumping straight into transactions, building the groundwork is essential. Preparation results in successful transaction negotiations and outcomes. This groundwork includes developing economic development governance frameworks and building the internal capacity to screen opportunities effectively. Taking the time to do this upfront creates a foundation for confident decision-making and allocation of your Nation’s time and resources.
3. Set investment criteria guidelines — With more options comes more pressure. Communities that want to take full advantage of this momentum will benefit from having a clear investment criteria: What are your go-to industries? What level of capital or risk are you comfortable with? What’s your internal approval process? And just as importantly — what are the no-go zones?

Establishing these criteria upfront allows leadership to move quickly without sacrificing alignment or accountability.

Responding strategically to opportunity

A clear vision necessitates focused delivery. It also requires your team to quickly screen out investment opportunities. Practically speaking, as there is always a human and financial cost attached to exploring opportunities, it is prudent to respond strategically to opportunity.

Today, given the amount of value that Indigenous Nations bring to the table, they are being approached with pitches ranging from start-ups to billion-dollar equity offerings into publicly traded companies. Many Nations are receiving more business pitches than ever, and at a volume that can quickly become overwhelming.

The screening process enabled by establishing a Nation-led investment strategy provides Indigenous Nations with significant long-term value. In the experience of MNP’s advisors, a thoughtful, structured approach leads to more successful deals by only focusing on those that are screened into your process. On the other side, a Nation-led investment strategy can help communities assess proposals quickly, identify red flags, and say no to opportunities that don’t align. Early-stage financial reviews, risk assessments, and background checks on potential partners help clarify decision-making. Even a quick review can help Leadership feel informed and in control and help avoid costly missteps.

A Nation-led investment strategy empowers Indigenous Nations to proactively pursue opportunities that are aligned with their vision.

Where deals can break down: Risks and common pitfalls

When evaluating or negotiating transactions, it’s essential to recognize where things can go wrong and how to navigate around those risks.

One tip to mitigate risk is getting to know your potential business partner. Oftentimes, Indigenous Nations are approached by private companies who aren’t known to them. This makes it prudent to conduct thorough background checks, reference checks, dig deeply into the company’s historical financial performance and operating history, and build personal relationships with their executive and management teams. Taking these initial steps protects your Nation from entering into a long-term arrangement with a partner that may not be the best fit or have the best of intentions.

Another tip is to avoid hidden costs and limit your capital exposure. Many of the most serious risks stem from how a deal is structured. If liability isn’t correctly managed upfront, Nations can find themselves responsible for losses or on the hook for capital calls. Sometimes, unfavourable tax structures or overlooked compliance obligations can lead to unexpected costs after the deal closes. These aren’t minor oversights — they can affect your Nation’s financial stability for years.

Another common pitfall is moving too quickly, especially when a deal comes from a large corporate partner or involves multiple Nations. Without a clear investment criteria or internal approvals process, Leadership may feel rushed into agreements that don’t align with their broader goals.

In the experience of MNP’s advisors, it is very helpful to consider a communications strategy at the beginning of any transaction. Many equity deals involve commercially sensitive information protected by non-disclosure agreements (NDAs). These are necessary, but they can also create friction. Leadership and economic development teams often find themselves in a difficult position — they’re working in the best interests of their community members yet can’t fully share what’s on the table until the deal is done. Finding the balance of keeping Nation members informed while not breaching their NDAs is a very complex challenge. When a project closes, and Nation members learn about it after the fact, it can lead to confusion, mistrust, or pushback — even if the deal is solid. That’s why it’s important to build internal processes that allow for transparency, where possible, without breaching confidentiality. Clear, values-based communication about your Nation’s vision and investment approach can help members stay informed and included, even when the details have to wait.

What success looks like

A successful transaction isn’t defined by how quickly it closes — but by how it performs over the long term. A lot of effort and resources go into negotiating and structuring each transaction, which can take anywhere from a few months to a few years. However, once the transaction closes, Nations then need to govern their investment for future generations. That’s why the focus isn’t just on negotiating the best terms but on limiting future liability and ensuring sound governance structures are in place. Thinking about how your Nation wishes to govern your investment from day one of negotiations and how this new investment will fit into your larger portfolio is critical. These steps ensure communities aren’t left with unexpected costs or risks down the road.

In some cases, success also means walking away at various stages of a transaction. There’s power in knowing when a proposed partnership or equity investment doesn’t align with your Nation’s values or priorities and having the right tools and insight to say no with confidence.

Navigating risk without sacrificing opportunity

Whether you’re just beginning to map out an investment strategy or actively evaluating investment opportunities, the key is following your vision, trusting in your processes, and having the right team to perform the work.

The sky is the limit. With thoughtful planning, strong governance, and access to the right expertise, Indigenous Nations can achieve their long-term goals and build prosperity that lasts for generations.

If your Nation is exploring investment strategies and governance options or getting ready to review equity ownership opportunities, contact MNP’s Indigenous Equity Opportunities team to learn how we can support your journey.