VCCI-backed Kensington Venture Fund II raises initial $85 mln

Kensington Capital Partners has raised $85 million in commitments in the first close of Kensington Venture Fund II.

Fund II, a fund of funds earmarked for investments in a range of venture capital funds and technology companies primarily based in Canada, was launched under the $400-million Venture Capital Catalyst Initiative (VCCI).

Other investors in the first close included BMO Capital Partners, Trend Forward Capital and Kensington Private Equity Fund.

The federal government announced in June that VCCI would commit capital to five fund-of-funds managers, including Kensington, a Toronto-based alternative assets investor.

Kensington Venture Fund I secured more than $300 million in a final close in 2016.

PRESS RELEASE

Kensington Capital Partners Announces First Close of Kensington Venture Fund II

New Fund Launched Under Canada’s Venture Capital Catalyst Initiative

TORONTO – December 17, 2018 – Kensington Capital Partners today announced that it has raised $85 million in the first close of Kensington Venture Fund II, LP, a fund of funds investing in promising venture capital (VC) funds and technology companies. The new Fund has been launched under the Government of Canada’s Venture Capital Catalyst Initiative (VCCI). Additional investors include BMO Capital Partners, Trend Forward Capital, and the Kensington Private Equity Fund, among other institutional and individual investors.

The new Kensington Venture Fund II will target investments in VC funds, as well as direct investments in promising emerging technology companies. The diversified portfolio will include investments across key technology sectors and stages, primarily in Canada. Kensington has offices in Toronto, Vancouver, and Calgary.

“Our government is helping small and medium-sized businesses start up, scale up and access new markets. We’re doing this by investing in venture capital, which helps transform great ideas into game-changing innovations and create good middle-class jobs for Canadians. Canada’s venture capital industry is critical to our economy and is steadily growing. The Government of Canada is a proud investor in the Kensington Venture Fund II which will give Canadian companies the capital they need to drive their success. Together, we will make sure Canada remains one of the most entrepreneurial countries in the world,” said The Honourable Mary Ng, Minister of Small Business and Export Promotion.

“Canada’s technology sector has grown dramatically in the past several years, with tremendous innovation in the market, many companies continuing to scale, and strong performance for investors,” said Rick Nathan, Managing Director of Kensington Capital Partners. “We believe that there has never been a better time to invest in this market.”

“As co-investors alongside Kensington in one of their portfolio companies, we had the opportunity to see first-hand the level of professionalism, integrity, and strategic thinking contributed by the Kensington team,” said Jonathan Chang, a Partner at Trend Forward Capital. “It was an easy decision for us to choose Kensington for our first fund investment. It builds on our partnership with them across the Canadian tech sector and enables us to tap into the tremendous potential of entrepreneurs across the country.”

About Kensington Venture Fund II
Kensington Venture Fund II will invest in promising venture capital funds as well as direct investments in emerging technology companies. The diversified portfolio is expected to include more than 100 companies across key technology sectors and stages. The substantial majority of underlying fund managers and direct investments will be based in Canada, with the broader fund-of-funds portfolio covering Canada and the United States. The Fund has been launched under the Government of Canada’s Venture Capital Catalyst Initiative (VCCI).

About Kensington Capital Partners
Kensington is a leading independent Canadian investor in alternative assets. Founded in 1996, and with offices in Toronto, Vancouver and Calgary, Kensington has invested more than $1.3 billion to date in private equity, venture capital, and other alternatives. Kensington’s active management approach and relationship based business has generated top quartile returns for investors. For more information, visit www.kcpl.ca.

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