Ottawa, May 3, 2013
2013-067
The Honourable Jim Flaherty, Minister of Finance, today announced an important step in implementing the Harper Government’s Venture Capital Action Plan, a comprehensive approach to funding innovative companies, while supporting growth and job creation in Canada.
“The Venture Capital Action Plan is a new market-oriented approach to put Canada’s venture capital industry on the path to sustainability by increasing the availability of financing for innovative Canadian firms,” said Minister Flaherty. “Our Government’s support will make Canada’s venture capital industry more globally competitive, while helping ensure Canada’s high-potential firms have the resources they need to grow and create jobs.”
In January, the Prime Minister announced the Venture Capital Action Plan which included resources for establishing and recapitalizing large, private sector-led funds of funds. A fund of funds portfolio consists of investments in several venture capital funds, made by a General Partner and Manager on behalf of investors. As a next step in this component of the Venture Capital Action Plan, the Government is launching a selection process for General Partners and Managers to manage the funds of funds.
The Venture Capital Action Plan also includes resources for up to five high-performing venture capital funds, which are expected to provide immediate capital to innovative high-growth companies. The Government is launching a separate selection process for high-performing venture capital funds interested in securing investments from the Government.
“Venture capital plays a critical role in providing the investment and resources needed for innovative enterprises to realize their full potential,” said Samuel L. Duboc, the Department of Finance’s Clifford Clark Visiting Economist and Special Advisor on Venture Capital. “The Government has committed to an approach that is private sector-led and market-oriented. This will contribute to securing a long-term sustainable venture capital industry in Canada.”
Selection Process for General Partners and Managers of Funds of Funds
The Government is inviting interested parties to submit their candidacy to act as a General Partner and Manager to manage a fund of funds established or recapitalized through the Venture Capital Action Plan. For each fund of funds, the selected candidate will invest and manage total committed capital ranging from $300 million to $400 million. It is expected that the General Partner will commit its own resources and secure some of the private sector investors for the fund.
To qualify for consideration, candidates should have experience managing funds of funds, venture capital funds or another similar vehicle, and have, or be prepared to establish, a substantial presence in Canada.
Interested parties should submit an expression of interest by June 3, 2013.
Selection Process for High-performing Venture Capital Funds
The Government is also inviting expressions of interest from high-performing venture capital funds seeking a potential investment from the Government under the Venture Capital Action Plan.
To qualify for consideration, high-performing funds are expected to be broadly focused on key growth sectors where Canada can be competitive globally, have already or are expected to shortly hold a “first closing”, and have a substantial presence in Canada.
Venture capital funds should submit an expression of interest by May 27, 2013.
In the coming weeks, the Harper Government will announce a private sector advisory panel to assist in the selection processes for General Partners and for high-performing venture capital funds.
Additional information on the Venture Capital Action Plan, including guidelines and frequently asked questions related to both selection processes, is available on the Venture Capital Action Plan website.
Related Documents:
Kathleen Perchaluk
Press Secretary
Office of the Minister of Finance
613-996-7861
Jack Aubry
Media Relations
Department of Finance
613-996-8080
