BDC commits $72.5m to Kensington

Business Development Bank of Canada has backed Kensington Venture Fund III.

Institution:  Business Development Bank of Canada (BDC)
Headquarters: Montreal, Canada
AUM: CA$42.2 billion

Business Development Bank of Canada (BDC) has committed $72.5 million to Kensington Venture Fund III through the Venture Capital Catalyst Initiative (VCCI) of the Government of Canada, according to a press release.

Fund III is a fund of funds that targets venture funds in Canada and has a target size of $290 million. The vehicle’s predecessor, Kensington Venture Fund II, closed in 2019 on $150 million.

Kensington Capital Partners is a Toronto-headquartered firm that was established in 1996. It targets investments in private equity and infrastructure across the US and Canada.

As illustrated below, the BDC recent fund commitments have predominantly targeted North American vehicles focused on the TMT sector.

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