Northleaf Capital Partners has initially closed Northleaf Venture Catalyst Fund II (NVCF II), a fund of funds earmarked for investments in Canadian venture capital funds and technology companies. The amount raised was not disclosed. The Globe and Mail reported NVCF II secured half of its C$300-million target. NVCF II was launched with the help of the C$400-million Venture Capital Catalyst Initiative. It was also backed by Canada Pension Plan Investment Board, a longtime Northleaf partner. Other investors included Sun Life Financial and TD Bank Group. Ottawa announced in June that VCCI would commit capital to five fund-of-funds managers, including Northleaf, a Toronto-based private-markets investor. NVCF I closed at its C$300-million hard cap in 2015.
TORONTO (December 17, 2018) – Northleaf Capital Partners (“Northleaf”), Canada’s largest independent global private markets fund manager, today announced the launch and initial closing of Northleaf Venture Catalyst Fund II (“NVCF II” or the “Fund”) as part of the Government of Canada’s Venture Capital Catalyst Initiative. NVCF II provides investors with access to Canada’s top venture capital funds as well as direct investments in high-potential, innovative Canadian companies.
“We are delighted that the Venture Capital Catalyst Initiative is receiving strong support from investors and that Northleaf has achieved this important milestone,” said Mary Ng, Canada’s Minister of Small Business and Export Promotion. “Our government’s Venture Capital Catalyst Initiative strengthens and broadens the Canadian venture capital ecosystem and increases the availability of late-stage venture capital. The Government of Canada is proud to invest in Northleaf, ensuring Canada’s future technology leaders can draw upon a strong and steady stream of capital, knowledge and expertise.”
NVCF II is the latest in Northleaf’s series of Canada-focused venture capital funds and builds on Northleaf’s extensive experience and track record of investing and managing similar highly successful public/private investment partnerships, including the Ontario Venture Capital Fund (“OVCF”), launched in 2008, and Northleaf Venture Catalyst Fund I (“NVCF I”), launched in 2014. Both OVCF and NVCF I have completed their investment programs and have generated attractive returns through investments in more than 20 Canadian venture capital funds and 19 leading, high-growth technology companies.
In addition to the Government of Canada, which invested in NVCF II through BDC Capital, the investment arm of the Business Development Bank of Canada (BDC), a number of leading Canadian institutional investors who were also investors in OVCF and NVCF I participated in the Fund’s initial closing. These first-close investors include Canada Pension Plan Investment Board (CPPIB), Sun Life Financial and TD Bank Group, as well as a number of high net worth and family office investors. Additional closings will be held in 2019.
“NVCF II will execute Northleaf’s proven strategy in the Canadian venture capital industry, with a disciplined focus on generating top-tier returns for our investors,” said Ian Carew, Director at Northleaf. “We are excited to continue to accelerate the development of a vibrant investment environment, and to empower promising Canadian companies to scale-up into global champions.”
The Fund will also benefit from Northleaf’s experienced venture capital and private equity investment team and successful long-term track record, as well as from the synergies, deal flow and investment insights produced by Northleaf’s US$12 billion global private markets platform.
About Northleaf Capital Partners
Northleaf Capital Partners is an independent global private markets fund manager with US$12 billion in private equity, private credit and infrastructure commitments under management on behalf of public, corporate and multi-employer pension plans, endowments, foundations, financial institutions and family offices. Northleaf’s 120-person team, located in Toronto, Montreal, London, New York, Chicago, Menlo Park and Melbourne, is focused exclusively on sourcing, evaluating and managing private markets investments globally. Northleaf’s portfolio includes more than 250 active investments in 14 countries, with a focus on mid-market companies and assets. For more information on Northleaf, please visit www.northleafcapital.com