Canada’s two largest pension funds are jointly investing $1.2 billion to launch a new European investment fund, which will provide venture capital to growing companies as they mature beyond their startup phase.

The Caisse de depot et placement du Quebec and the Ontario Teachers’ Pension Plan, through subsidiaries, are each contributing 350 million euros to the mezzanine fund, which will have a total of one billion euros to invest.

Partners Group of Switzerland is also joining as a sponsoring investor.

The new fund, Park Square Capital Partners LP, which will be managed by a team headed by London-based Robin Doumar, formerly head of Goldman Sachs’ European mezzanine business.

A mezzanine fund typically provides venture capital to companies that are beyond their start-up phase and in the process of ramping up production and marketing.

Park Square’s investment strategy will be to provide capital for private equity firms, corporations and underwriting banks. It can underwrite single transactions of up to 200 million euros and, with partners, can invest in larger transactions.

As of Dec. 31, the Caisse it held $89.4 billion of net assets. The Ontario Teachers Pension Plan, has $79 billion of net assets.