Northleaf announces first close of VCCI-backed Venture Catalyst Fund II

Toronto investment firm Northleaf Capital Partners has announced the launch and initial closing of its Northleaf Venture Catalyst Fund II. Like Kensington Venture Fund II, which was also announced this morning, Northleaf’s new fund-of-funds was one of the five named in June of this year to receive a portion of the $350 million earmarked to Stream 1 of VCCI in Budget 2017.

Northleaf Venture Catalyst Fund II reportedly sits at over half of the fund’s $300 million target.

Northleaf did not confirm the first initial close amount, but The Globe and Mail is reporting that it sits at over half of the fund’s $300 million target. In addition to the VCCI funding, Canada Pension Plan Investment Board (CPPIB), Sun Life Financial and TD Bank Group, as well as high net worth and family office investors, participated in the round.

“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, 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.”

Northleaf’s Venture Catalyst Fund I was also a fund-of-funds to receive financing in 2014 via the Venture Capital Action Plan (VCAP), VCCI’s predecessor program.