First VCAP fund-of-funds Northleaf Venture Catalyst Fund nets $218 mln in initial close
The Canadian government has announced the launch of Northleaf Venture Catalyst Fund, the first market-based fund-of-funds backed by Ottawa's $400 million Venture Capital Action Plan in partnership with the Ontario government. The fund, which will be managed by Toronto-based Northleaf Capital Partners, has raised $217.5 million in commitments in its initial closing, two-thirds of which, or $145 million, came from corporate and institutional investors, including BDC Capital, Canada Pension Plan Investment Board, OpenText Corp, and six of Canada's leading banks. Northleaf Venture Catalyst Fund, which is targeted to raise $300 million in total, will make commitments primarily to Canadian venture capital funds, and direct investments in Canadian companies. The federal and Ontario governments have agreed to make a combined commitment of $1 for every $2 committed by private investors to the fund, up to a maximum of $50 million each. A second closing is anticipated later this year.
