The Government of Canada, through the Venture Capital Catalyst Initiative of the Business Development Bank of Canada (BDC), has committed $72.5 million to Kensington Venture Fund III.
The Government of Canada, through the Venture Capital Catalyst Initiative of the Business Development Bank of Canada (BDC), has committed $72.5 million to Kensington Venture Fund III.
The new Fund III, a fund of funds that targets venture funds in Canada, has a target size of CAD290 million with BDC investing 25% of that total. The vehicle’s predecessor, Kensington Venture Fund II, closed in 2019 on CAD150 million.
The VCCI program is designed to strengthen the Canadian venture market by building a larger pool of available capital. The Fund has been designed by the Government to attract investors, through a special incentive structure that reduces risk.
Kensington Capital Partners is a Toronto-headquartered firm that was established in 1996. It targets investments in private equity and infrastructure across the US and Canada, and has been investing in this sector for more than 15 years, with over $1.5 billion invested to date in venture capital and technology growth. This includes two prior venture funds under similar Government mandates, as well as other Kensington funds.
