HarbourVest Partners Closes Canada Growth Fund
5 April 2016
$CAD 375 Million Fund Created Under the Government of Canada’s Venture Capital Action Plan
BOSTON – April 5, 2016 – HarbourVest Partners (“HarbourVest”), an independent, global private markets specialist, today announced the $CAD 375 million final close of HarbourVest Canada Growth Fund. The fund, a venture capital fund of funds formed under the Government of Canada’s Venture Capital Action Plan (VCAP), was oversubscribed and closed, at target, less than one year after its initial closing in April 2015.
“We see VCAP playing a critical role in revitalizing the Canadian venture capital landscape and while still early, the investment program is off to a great start,” said Senia Rapisarda, Principal at HarbourVest in Toronto. “The creation of our Canada Growth Fund has been a truly gratifying collaboration with the Canadian government and it will be important that this program continues to sustain the momentum in the coming years.”
HarbourVest Canada Growth Fund focuses on investing primarily in early-stage and mid-stage venture capital funds from both Canadian-based managers and top-tier US-based managers that invest in Canadian companies. HarbourVest will also consider opportunities for co-investments directly into companies across Canada. Since its initial closing, HarbourVest has identified a strong pipeline of investment opportunities, such as last summer’s co-investment in Toronto-based Intelex alongside JMI Equity.
In addition to Intelex, commitments to local Canadian fund managers include Avrio Ventures, Genesys Ventures, Georgian Partners, Golden Venture Partners, Information Venture Partners, Inovia, and McRock. The portfolio is also complemented by investments in U.S. and international venture managers such as Battery Ventures, Index Ventures, and Spark Capital.
“We’re very pleased with how the portfolio has come together over the last year, including both high-caliber Canadian VC firms and top-tier US Venture managers with historical investments in Canada,” said Chris Walker, Principal at HarbourVest in Boston. “Venture capital is global and by adding international managers to the portfolio we are building new relationships and increasing collaboration between Canadian companies and management teams and their US and international counterparts.”
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 which represent approximately two-thirds of the fund. As part of the VCAP program, the fund also includes a cornerstone investment by the Government of Canada, through BDC Capital Inc.
HarbourVest has been making investments in Canada since 1989, with more than $425 million of indirect investments into over 200 Canadian companies through primary fund investments and secondary investments and investments of $40 million in Canadian growth equity transactions. The firm last year opened its first office in Toronto, led by Ms. Rapisarda, whose focus is on partnership and direct co-investments in Canada and to expand HarbourVest’s local presence in the market.