Northleaf Venture Catalyst Fund Launches in Canada
The Northleaf Venture Catalyst Fund, a private sector-led fund of funds and a key element of the Government of Canada’s Venture Capital Action Plan (VCAP), was recently announced by the governments of Canada and Ontario.
It is the first fund of funds established under the VCAP, and had its initial closing with $217.5 million in commitments, of which $145 million is from institutional and corporate investors, and $36.3 million is from each of the governments of Canada and Ontario. The Northleaf fund has an overall target size of $300 million.
The Northleaf Venture Catalyst Fund will invest primarily in Canada-focused early-stage and mid-stage venture capital funds, and directly in companies across Canada. Northleaf Capital Partners has been selected by lead investors to act as the general partner for the fund, following a fair and competitive selection process led by the Venture Capital Expert Panel appointed by Finance Minister Jim Flaherty. Investment decisions will be made by Northleaf Capital Partners on market-based principles in order to maximize returns.
The governments of Canada and Ontario have agreed to make a combined capital commitment of $1 for every $2 committed by private sector investors to the new fund, up to a maximum of $50 million each. The fund will seek additional investors to reach its target size and anticipates holding a second closing later in 2014.
The initial partners in the fund are:
• BDC Capital Inc.
• BMO Financial Group
• Canada Pension Plan Investment Board
• Canadian Imperial Bank of Commerce
• National Bank of Canada
• Ontario Capital Growth Corporation
• OpenText Corporation
• TD Bank Group
Illustration by kasahasa at Free Digital Photos.net
Source: Department of Finance-Canada