Montreal, Quebec
Objective
The Government of Canada will work with provincial governments to recapitalize existing, large-scale private sector-led funds of funds (a funds of funds portfolio consists of investments in several venture capital funds). These recapitalized funds of funds will be national in scope.
Description
- The exact size, number and investment strategies of the recapitalized, large-scale funds of funds will depend on the outcome of discussions with provinces, as well as the interest of private sector investors who commit resources.
- Provincial governments would provide capital to the funds of funds on the same terms as the capital from the Government of Canada, including any incentives required to attract private investors. The same incentive structure will be available to private sector investors in the new national funds of funds.
- The Government of Canada will make available up to $100 million to recapitalize existing large private sector-led funds of funds, in partnership with willing provinces.
- Funds of funds that will be eligible for federal investment must:
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- Be large scale ($200 million-$300 million);
- Be national in scope;
- Be managed by a private sector General Partner with a substantial presence in Canada;
- Investments are to be market-based and focused on maximizing returns;
- Include provincial resources that match the federal contribution; and
- Lever private sector investments.
- The recapitalized funds of funds will be managed by an experienced private sector General Partner, who has a substantial presence in Canada. The investments made by the funds will be market-oriented and focused on maximizing returns. To be eligible for investments from the funds of funds, underlying venture capital fund managers must have a substantial presence in Canada and must also commit to investing one third of their total capital in Canadian-domiciled firms.
Next Steps
The Government of Canada will work with interested provincial governments to recapitalize existing, large-scale private sector-led funds of funds.
