VentureLink LP says that two of its labour sponsored investment funds expect to successfully exit their investments in VFC Inc. following the announcement that VFC will be acquired by TD Bank for approximately $326 million.

VFC is a consumer finance corporation that specializes in the sales financing of secured automobile installment contracts, conditional sales contracts, consumer loans and leases. Over the years, VFC has financed thousands of loans for clients through its cross-Canada network of franchised and independent automotive dealerships.

TD is offering $19.50 per share for all the outstanding shares of VFC, a $5.35 premium over VFC’s closing price of $14.15 on Feb. 15, 2006.

“Management of VFC has done a tremendous job of creating shareholder value,” says VentureLink Managing Partner Geoff Horton. “Our investment in VFC is an example of our mezzanine investment strategy. We invested in interest- bearing debt at a very competitive rate and participated with the shareholders in value creation through our warrants and common shares.”

VentureLink Financial Services Innovation Fund holds a $6.04 million investment in VFC in debentures, warrants and common shares, and VentureLink Diversified Income Fund has $760,000 in similar holdings.

Projected proceeds to the funds are approximately $13 million which, when combined with interest payments over the life of the debentures, will result in an annual return in excess of 25%.