June 11, 2008

FUND DETAILS

What is it?

The Ontario Venture Capital Fund (OVCF) is a limited partnership between the Ontario government and leading institutional investors to invest primarily in Ontario-focused venture capital and growth funds that support innovative, high growth companies.

Investment Focus

The OVCF’s objective is to generate superior, long-term risk-adjusted returns for its investors, thereby promoting a globally competitive venture capital industry in Ontario — one capable of supporting and developing promising, innovative Ontario-based enterprises.

Structure

The OVCF is structured as a fund-of-funds that makes investments primarily in funds that in turn invest directly into high-growth companies.

Between 80 and 100 per cent of the capital will be invested in these underlying funds, with up to 20 per cent of the capital available for direct co-investments, alongside fund managers, in Ontario-based companies.

Between 80 per cent and 100 per cent of the fund investments will be invested in Ontario-based and Ontario-focused funds. Up to 20 per cent will be available for investment in other venture capital funds.

Between 75 per cent and 100 per cent of the fund investments will be invested in venture capital and growth-oriented funds.  Up to 25 per cent will be available for investment in other Ontario-focused private equity funds that make investments in small and mid-market companies.

Total Capitalization

The fund held its first closing on June 6, 2008 with $205 million in capital commitments from the Ontario government and private sector investors. It will seek to add additional investors as limited partners and anticipates having a second closing later in 2008.

Investment Period

The fund will begin investing in 2008 and, subject to prevailing market conditions, is expected to have an active investment period of between three and four years. 

Anticipated Outcomes

In addition to providing investors with superior long-term returns, the fund will help to:

• Promote the creation of a globally-competitive venture capital industry in Ontario which supports Ontario-based innovative companies
• Increase the supply and effective deployment of investment capital in Ontario by supporting top-performing fund managers
• Increase the level of institutional investments in venture capital in Ontario
• Improve the flow of capital at all stages of investment in innovative Ontario companies

Fund Manager

After an extensive request for proposal process, TD Capital Private Equity Investors (“TD Capital”), Canada’s leading private equity fund of funds manager, has been unanimously selected as the general partner and manager of the fund. All investment decisions for the OVCF will be made by TD Capital. For further details on the fund, contact TD Capital at 416-308-6316; peinvestors@tdcapital.com.

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See also:

• News Release: Switching On Sunlight For Clean Electricity
• Backgrounder: Ontario: A Catalyst For Innovation
• Backgrounder: What The Partners Say