TORONTO, March 27, 2006 - Ontario labour sponsored investment fund ("LSIF") investors opted for leadership, experience and a time-tested approach to private equity investing as VenGrowth Funds(i) were once again the top choice this RRSP season. Collectively the VenGrowth Funds raised $54 million in capital over the year ended March 1, 2006. This marks the ninth consecutive RRSP season that VenGrowth funds have been the sales and market share leader among Ontario-based LSIFs.
"More than ever, financial advisors and investors are acknowledging the importance of capital strength and leadership in the private equity asset class. Our clients take comfort in the fact that VenGrowth has been investing in the Canadian private equity space since 1982, focusing on investment opportunities at the later-stage of the respective venture sectors," said David Ferguson, Managing General Partner, VenGrowth. "The prevalent cautious attitude of investors is also reflected in the success of VenGrowth's most conservative fund offering this fundraising season."
The VenGrowth Traditional Industries Fund continued to build on the momentum it has enjoyed since its launch in 2003. Among the more conservative options available to LSIF investors, the Fund typically invests by making interest-bearing loans to established Canadian businesses that are projecting sustainable cash flows. An equity interest is typically held alongside the loan in order for the Fund to generate long-term capital appreciation. With this conservative private equity investment strategy, the Fund has built a diversified portfolio of established companies in the manufacturing and services sectors, and has delivered consistent returns for shareholders(ii).
The VenGrowth Advanced Life Sciences Fund was once again the fundraising leader among life sciences-oriented LSIFs, following a year of outstanding progress by its portfolio of companies focused on the areas of biotechnology, medical imaging and diagnostics. Launched in 2002, The Fund successfully exited its first investment over the course of the year when Cita NeuroPharmaceuticals Inc. ("Cita") was purchased by Vernalis plc in a deal worth up to US$64.5 million. Examples of significant progress made by other portfolio companies include VisualSonics Inc., a Toronto-based company that recently reported the sale of its 200th micro-imaging system worldwide and a compounded annual growth rate of 145% over the past three years. The Fund adopts a later-stage approach to investing in life sciences venture opportunities by focusing on proven management and products that have demonstrated the potential to meet large, underserved medical needs(iii).
The VenGrowth III Diversified Fund continued to successfully raise capital to support its mandate of spreading investments across the best opportunities in all of the major Canadian venture sectors - technology, life sciences, manufacturing and services. One of the most broadly diversified offerings in the LSIF marketplace, the Fund has successfully invested in predominantly later-stage venture opportunities. Holdings in the technology sector include companies that have already refined products and significantly grown revenues. A good example is Sandvine Incorporated, a Waterloo-based company that successfully completed an initial public offering on London Stock Exchange's Alternative Investment Market this month(iv).
Continued strong capital support from retail and institutional pools ensures that VenGrowth's broad portfolio of over 70 small-to-medium sized companies have access to the financial resources required to advance in their respective markets. Many of the innovative companies within the VenGrowth portfolio have the potential to make a significant impact on the global stage and become part of the next generation of leading Canadian employers.
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 over 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. "VenGrowth" means VenGrowth Private Equity Partners Inc. and its affiliates and the Funds that they manage as the case requires. For more information, please visit www.vengrowth.com.
Please read the prospectuses of the VenGrowth Funds before investing. Commissions, trailing commisions, management fees and expenses all may be associated with mutual fund investments. The indicated rates of return are the historical annual compounded total returns, including changes in share value and do not take into account sales, redemption or optional charges or income taxes payable by any security holder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.
Media Inquiries
Angus Fisher
Media Relations
VenGrowth Asset Management Inc.
(416) 628 9255
afisher@vengrowth.com
(i) - The VenGrowth III Investment Fund Inc. (aka VenGrowth III Diversified Fund), The VenGrowth Advanced Life Sciences Fund Inc., The VenGrowth Traditional Industries Fund Inc.
(ii) - VenGrowth Traditional Industries Fund Returns (%): 1 yr 5.1%, 2 yr 2.0%, Since Inception 1.8%.
(iii) - VenGrowth Advanced Life Sciences Fund Returns (%): 1 yr -2.6%, 2 yr 1.2%, 3yr 1.2%, Since Inception -0.3%.
(iv) - VenGrowth III Diversified Fund Returns (%): 1 yr -5.7%, Since Inception -4.1%.
All returns as of February 28, 2006.
