Toronto, April 5, 2005 - VenGrowth Private Equity Partners Inc. ("VenGrowth"), a leading private equity firm with over $1 billion in assets under management, is the top choice for investors in national labour sponsored investment funds ("LSIFs") following another dominant fundraising season. The VenGrowth Funds* raised $73 million in new capital over the year ended March 1, 2005. This marks the eighth consecutive RRSP season that VenGrowth has been the sales and market share leader among Ontario-based LSIFs. Based on industry figures, the VenGrowth Funds have increased their share of the total Ontario LSIF market to a substantial 40% of sales this past season.
"This major vote of confidence in VenGrowth confirms that Canadian investors and advisors recognize the importance of longevity, capital strength, a conservative investment strategy and leadership in this unique private equity asset class," said David Ferguson, Managing General Partner, VenGrowth. "Continued fundraising dominance in the LSIF marketplace provides significant benefits to our shareholders and investee companies alike."
The small-to-medium sized Canadian companies in the VenGrowth Fund portfolios typically require a series of important financing rounds before they are ready for a profitable exit event such as listing on a public stock exchange or purchase by a strategic acquirer. Strong capital support from retail and institutional investors ensures VenGrowth portfolio companies have access to the financial resources required to advance and execute key business strategies. VenGrowth's consistent fundraising success also enables its experienced investment team to capitalize on the attractively valued opportunities that exist today following a prolonged down cycle in the venture market.
Life Sciences attracts lion share of attention; Industry-leading Mezzanine Group set for another active year
Launched in 2002, the VenGrowth Advanced Life Sciences Fund once again easily led the Ontario industry in terms of fundraising this RRSP season. The fund, focused on global health care opportunities in an aging society and offering 35% in tax credits to eligible Ontario investors, attracted $40 million in new capital. The fund's portfolio is still relatively young but has reported exceptional progress from companies such as Trillium Therapeutics Inc., Cita NeuraPharmaceuticals Inc. (formerly GB Therapeutics Ltd.) and VisualSonics Inc. in recent months. Canada continues to progress as a hotbed of quality biotechnology and life sciences operations and the fund's investment managers are well placed to take advantage of the opportunities that exist.
The VenGrowth Traditional Industries Fund raised $20 million in new capital, garnering significant interest from retail investors looking for a more conservative option within the tax advantaged LSIF program. The fund is focused on Canadian companies in traditional manufacturing and services industries that are expected to generate sustainable cash flows. Investments are made primarily using "mezzanine" debt financing with the objective of generating regular interest income back to the fund as well as long-term capital appreciation. VenGrowth's Mezzanine Finance Group, Canada's most active LSIF mezzanine investors, also recently raised $40 million from leading financial institutions for a new institutional mezzanine fund. Investors included Business Development Bank of Canada, BMO Nesbitt Burns Equity Partners and Canadian Medical Protective Association. VenGrowth continues to be the only private equity manager with the ability to consistently attract significant institutional as well as retail capital.
VenGrowth's flagship diversified LSIFs, VenGrowth II Fund (now capped to new investors) and VenGrowth III Fund, attracted $13 million collectively over the fundraising season. Launched in October 2004, VenGrowth III is one of the most broadly diversified offerings in the LSIF marketplace, with an objective of spreading investments across the leading opportunities in Canada's technology, life sciences and traditional industries sectors.
About VenGrowth
With over $1 billion in assets under management, VenGrowth is Canada's largest private equity and venture capital firm managing both retail and institutional assets. Since 1982, VenGrowth's accomplished private equity managers have invested over $1.1 billion in 180 companies, building a strong track record of successful portfolio transactions. These investments have been made on behalf of over 180,000 individual investors and leading pension funds, banks, insurance companies and family foundations. Portfolio companies benefit from VenGrowth's substantial experience, resources, and hands-on investment style. VenGrowth's offices are located in Toronto (Corporate Headquarters) and Ottawa. For more information, please visit www.vengrowth.com.
*The VenGrowth II Investment Fund Inc., The VenGrowth III Investment Fund Inc., The VenGrowth Advanced Life Sciences Fund Inc., The VenGrowth Traditional Industries Fund Inc.
For further information:
Angus Fisher
Media Relations
VenGrowth Asset Management Inc.
(416) 628 9255
afisher@vengrowth.com
