HarbourVest Canada Growth Fund closes on C$375m

The fund was oversubscribed and closed on its target under a year after its final closing.

HarbourVest Partners has closed HarbourVest Canada Growth Fund on its C$375 million ($285 million; €251 million) target, the firm said.

The venture capital fund of funds held a first close in April 2015 and reached final close oversubscribed. It was formed as part of the Government of Canada’s Venture Capital Action Plan (VCAP), HarbourVest said.

Government- owned Business Development Bank of Canada (BDC) committed a cornerstone investment of one-third of total fundraised value, according to a source close to the matter, and announced that the VCAP had reached its goal to invest in four private fund of funds.

The HarbourVest fund’s investor base encompasses limited partners in Canada, the US and Europe. About two-thirds of the LPs are institutional, corporate and high net worth investors, HarbourVest said.

LPs include the Canada Pension Plan Investment Board, Bank of Montreal, Canadian Imperial Bank of Commerce, Scotiabank, The Business Development Bank of Canada, TD Bank and Knight Therapeutics, according to PEI Research & Analytics.

The new fund will focus mainly on early-stage and mid-stage venture capital funds managed by both Canadian general partners and US-based GPs that invest in Canadian companies. In August, it co-invested with US-based JMI Equity, raising C$160 million for Toronto-based software solutions company Intelex.

The source said it has made 19 commitments to-date.

The fund has also committed capital to Canadian GPs such as Avrio Ventures, Genesys Ventures, Georgian Partners, Golden Venture Partners, Information Venture Partners, Inovia and McRock, and to US and international GPs such as Battery Ventures, Index Ventures and Spark Capital, it said.

“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,” HarbourVest principal Chris Walker said.

HarbourVest, which has been active in Canada since 1989, has made over $425 million in indirect investing to more than 200 Canadian companies via private equity funds and secondary investments, as well as $40 million tickets in Canadian growth equity deals. It opened a Toronto office last year, led by its principal Senia Rapisarda. It manages $39 billion in assets.

BDC’s three other VC fund investments were Teralys Capital Innovation Fund, the Kensington Venture Fund and the Northleaf Venture Catalyst Fund, it said.