HarbourVest Partners, a global private markets asset manager, has held the final close of the CAD300 million HarbourVest Canada Growth Fund II.
The fund, formed under the Government of Canada’s Venture Capital Catalyst Initiative (VCCI) to increase the availability of venture capital in the country, was oversubscribed and closed at its hard cap six months after its initial closing in April.
“Our collaboration with BDC Capital, first through the Venture Capital Action Plan program with Fund I, which has had strong performance since inception, and now through the VCCI with Fund II, has been successful and gratifying,” says Senia Rapisarda, Managing Director at HarbourVest in Toronto. “HarbourVest’s Canadian venture capital program allows our clients around the world to access private market investments in Canada, while also supporting innovative small and medium-sized Canadian businesses.”
HarbourVest’s VCCI investment mandate focuses on investing in leading Canadian venture and growth managers, top-tier international managers that have historically invested in Canadian companies, and making direct co-investments into Canadian companies at the growth equity stage. Canada Growth Fund II has committed to six partnerships and has made two direct investments to date.
HarbourVest has a strong pipeline of investment opportunities across different technology sectors and in life sciences. Commitments to Canadian fund managers include: iNovia Capital, Information Venture Partners, McRock Capital and Georgian Partners. The portfolio is complemented by investments in US and international venture managers such as Versant Ventures, a life sciences investor active in Canada.
Limited partners in the fund are base d in Canada, the United States, and Europe, and are primarily institutional, corporate, and high-net worth private sector investors. As part of the VCCI program, the fund includes a cornerstone investment by the Government of Canada, through BDC Capital, the investment arm of BDC.
“BDC Capital is pleased to see Boston-based HarbourVest reach the close of its second Canadian fund,” says Michael Denham, President and CEO of BDC. “HarbourVest has been a strong contributor to the marketplace and we look forward to continuing to work with them as we further strengthen the VC industry across the country and help build Canadian champions.”
