CAD 300 Million Fund Created Under the Government of Canada’s Venture Capital Catalyst Initiative
BOSTON–(BUSINESS WIRE)–HarbourVest Partners, a global private markets asset manager, today announced the final close of the CAD 300 million HarbourVest Canada Growth Fund II. The fund, formed under the Government of Canada’s Venture Capital Catalyst Initiative (VCCI) to increase the availability of venture capital in the country, was oversubscribed and closed at the fund’s hard cap six months after its initial closing in April.
“Our collaboration with BDC Capital, first through the Venture Capital Action Plan program with Fund I, which has had strong performance since inception, and now through the VCCI with Fund II, has been successful and gratifying,” said Senia Rapisarda, Managing Director at HarbourVest in Toronto. “HarbourVest’s Canadian venture capital program allows our clients around the world to access private market investments in Canada, while also supporting innovative small and medium-sized Canadian businesses.”
HarbourVest’s VCCI investment mandate focuses on investing in leading Canadian venture and growth managers, top-tier international managers that have historically invested in Canadian companies, and making direct co-investments into Canadian companies at the growth equity stage. Canada Growth Fund II has committed to six partnerships and has made two direct investments to date.
HarbourVest has a strong pipeline of investment opportunities across different technology sectors and in life sciences. Commitments to Canadian fund managers include: iNovia Capital, Information Venture Partners, McRock Capital and Georgian Partners. The portfolio is complemented by investments in US and international venture managers such as Versant Ventures, a life sciences investor active in Canada.
Limited partners in the fund are based in Canada, the United States, and Europe, and are primarily institutional, corporate, and high-net worth private sector investors. As part of the VCCI program, the fund includes a cornerstone investment by the Government of Canada, through BDC Capital, the investment arm of BDC.
“BDC Capital is pleased to see Boston-based HarbourVest reach the close of its second Canadian fund,” said Michael Denham, President and CEO of BDC. “HarbourVest has been a strong contributor to the marketplace and we look forward to continuing to work with them as we further strengthen the VC industry across the country and help build Canadian champions.”
HarbourVest has been making investments in Canada since 1989, with more than CAD 1.3 billion of direct and indirect investments into over 530 Canadian companies. The firm opened its office in Toronto in 2015, led by Ms. Rapisarda, and expanded its Toronto presence in 2018 to support its growing team of 10 professionals.
HarbourVest is an independent, global private markets investment specialist with 36 years of experience and more than $64 billion in assets under management, as of June 30, 2019. The Firm’s powerful global platform offers clients investment opportunities through primary fund investments, secondary investments, and direct co-investments in commingled funds or separately managed accounts. HarbourVest has more than 500 employees, including more than 125 investment professionals across Asia, Europe, and the Americas. This global team has committed more than $37 billion to newly-formed funds, completed over $21 billion in secondary purchases, and invested over $11 billion directly in operating companies. Partnering with HarbourVest, clients have access to customized solutions, longstanding relationships, actionable insights, and proven results.
BDC is the only bank devoted exclusively to entrepreneurs. It provides access to financing, both online and in-person, as well as advisory services to help Canadian businesses grow and succeed. Its investment arm, BDC Capital, offers a wide range of risk capital solutions. For 75 years and counting, BDC’s purpose has been to support entrepreneurs in all industries and all stages of growth. For more information and to consult more than 1,000 free tools, articles and entrepreneurs’ stories, visit bdc.ca.