A new venture capital (VC) fund of funds that was created as part of the federal government’s effort to rejuvenate the VC market in Canada has reached its maximum size, Toronto-based Northleaf Capital Partners announced today.
With new money from Sun Life Financial (Canada) Inc., along with several high net worth investors and family office investors, the Northleaf Venture Catalyst Fund has closed after reaching its maximum size of $300 million, the fund’s manager announced.
“Northleaf Venture Catalyst Fund is the first fund under the federal government’s Venture Capital Action Plan to reach its maximum fund size – and we are delighted with this milestone,” said federal Finance minister, Joe Oliver. “The additional capital will help ensure the country’s venture capital ecosystem is stronger, while encouraging a more innovative economy.”
Approximately 50% of the fund’s capital has, in turn, been committed to six VC fund managers (XPV Capital, Georgian Partners, Versant Ventures, Golden Venture Partners, Version One Ventures and Relay Ventures), and the fund has also made several direct investments in high-growth Canadian companies, including Wattpad, Vision Critical, Silanis, eSentire and FreshBooks. The fund’s primary objective is to generate attractive, long-term returns by investing in other VC and growth equity funds, and by making direct co-investments that support innovative, high-growth companies.
“NVCF is designed to construct a portfolio of best-in-class Canadian venture capital and growth equity funds and high potential companies – an investment strategy and approach that will continue to contribute to the development of a profitable, globally competitive and self-sustaining venture capital industry in Canada. We are working to build out the remaining portfolio and are excited by the promising pipeline of near-term investment opportunities,” said Jeff Pentland, managing director of Northleaf Capital Partners.