ARC Financial Corporation announced today that it has closed its third private equity fund. The $310 million ARC Energy Venture Fund 3 is a private equity investment partnership focused on start up to early stage companies across the energy sector.

ARC Financial’s first private equity investment partnership, the ARC Canadian Energy Venture Fund, is fully invested at $154.5 million. Investment of the $153.5 million second fund, ARC Canadian Energy Venture Fund 2 is expected to be complete by year-end 2001.

In addition to exploration and production, heavy oil and non-conventional and service sector investments, Venture Fund 3 is targeting investments in new energy and energy-technology opportunities. These include non-conventional oil and gas related technologies, transportation and infrastructure, electricity, fuel cell technology, refinery processes, coal and related technologies and other new or alternative energy related areas.

“Despite the near-term challenge posed by the weakness in the North American and global economies, we strongly believe that medium and longer-term investment fundamentals for the energy sector are very attractive,” said Phil Swift, president and CEO, ARC Financial Corporation. “Developing the energy supplies to satisfy future demand growth will require enormous investments across the entire supply chain. We are looking to invest the capital of ARC Energy Venture Fund 3 in entrepreneurial companies that will play a key role in this development process.”