Northleaf Capital Partners has announced the final close of its Northleaf Venture Catalyst Fund II, meeting its cap target and bringing the fund to $300 million,
“We are excited to continue to support the development and evolution of the Canadian venture capital ecosystem.”
Northleaf’s new fund-of-funds was one of the five named in June of 2018 to receive a portion of the $350 million earmarked to Stream 1 of the federal government’s Venture Capital Catalyst Initiative (VCCI) that was announced in Budget 2017. 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.
The Toronto-based investment firm announced the initial close of Fund II in December, with The Globe and Mail reporting that it had reached just over half of its $300 million target. In addition to VCCI funding, the initial close of the new fund received support from Canada Pension Plan Investment Board (CPPIB), Sun Life Financial and TD Bank Group, as well as high net worth and family office investors. As The Globe first reported, Northleaf’s final close received new commitments from BMO Capital Partners, it also included investments from Manulife and clients of BMO Private Bank Asia.
“We are thrilled that our government’s Venture Capital Catalyst Initiative [VCCI] is being recognized not only by Canadian investors, but by international investors as well,” said Minister of Small Business and Export Promotion Mary Ng. “We congratulate Northleaf on achieving its $300 million hard cap and welcome the opportunity to continue to work with them to strengthen and broaden the Canadian venture capital ecosystem.”
Since launching Fund II in December, Northleaf has made fund-of-funds investments in iNovia Capital, Versant Ventures, and StandUp Ventures (led by Michelle McBane), which helps Northleaf meet the diversity requirement for its VCCI funding, a nod towards addressing gender balance among typically male-dominated VC fund managers, investors, and portfolio companies.
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“NVCF II’s primary objective is to generate attractive, long-term returns for its investors and by doing so, clearly demonstrate the significant earnings potential available to investors in Canadian venture capital and growth equity funds and companies,” said Lauren Harris, director at Northleaf.
“We are excited to continue to support the development and evolution of the Canadian venture capital ecosystem, including our ongoing commitment to the promotion of gender balance, diversity and inclusion in Canada’s venture capital community,” she stated.
Fund II marks Northleaf’s third Canadian venture capital fund. It offers both venture capital and private equity investments and holds more than $12 billion USD in VC, private equity, private credit, and infrastructure commitments. The firm, which recently brought on Sophia Damianou as the company’s first London-based managing director of business development, stated that its portfolio spans 350 active investments in 34 countries.
Image courtesy Straticom