Archived - Governments of Canada and Ontario Help to Create Jobs and Growth with New Venture Capital Fund of Funds

January 21, 2014 – Waterloo, Ontario– Department of Finance

On behalf of Finance Minister Jim Flaherty, Minister of State for the Federal Economic Development Agency for Southern Ontario Gary Goodyear today announced the establishment of 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). Minister Goodyear was joined at the event by Ontario Premier Kathleen Wynne and Ontario Minister of Research and Innovation Reza Moridi.

The Fund, the first fund of funds established under the VCAP, 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 Fund has an overall target size of $300 million.

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 Minister 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
• RBC
• Scotiabank
• TD Bank Group

• The Government of Canada’s investment in Northleaf Venture Catalyst Fund is the latest step in the VCAP, a $400 million strategy launched in January 2013 to help increase private sector investments in early-stage risk capital, and contribute to a vibrant private sector-led venture capital sector in Canada.
• The VCAP includes a commitment to establish up to four new or recapitalized private sector-led funds of funds with private sector investors and interested provinces.
• The Business Development Bank of Canada is facilitating the implementation of the VCAP on behalf of the Government of Canada by providing independent expertise, undertaking due diligence, supporting negotiations with funds and other investors, and assisting in the deployment of VCAP investments.

• Backgrounder: Establishment of Northleaf Venture Catalyst Fund

• Venture Capital Action Plan

Marie Prentice
Press Secretary
Office of the Minister of Finance
613-996-7861

Jack Aubry
Media Relations
Department of Finance
613-996-8080

Media Office
Office of the Premier of Ontario
416-314-8975