TORONTO, May 7, 2010 - VenGrowth Asset Management Inc. and its affiliates (“VenGrowth”), a leading Canadian private equity firm, today announced that its Mezzanine group is adding a new investment discipline – mid-market buyouts, and a change to the VenGrowth Traditional Industries Fund Inc.’s (the “Fund”) management team.

VenGrowth will be looking to acquire, as principal, profitable mid-market Canadian companies. “We have participated in numerous buyout opportunities over the year as a mezzanine debt funder. Providing the equity piece is a logical extension, and capitalizes on our tremendous deal flow and our due diligence and structuring expertise” said John Neate, Partner.

The Buyout initiative will focus on Canadian manufacturing, distribution and service companies generating sustainable annual cash flow of between $1 and $3 million. “We believe that it is an ideal time to launch such an initiative, given the high number of businesses that will change hands over the next several years due to ownership succession” said David Ferguson, Managing General Partner.

The Mezzanine investment team, including the Buyout initiative will be headed by Mr. John Neate. John, who leads a team of four professionals, was hired into VenGrowth four years ago as a senior mezzanine investment manager after a long and successful track record in mezzanine investing. John succeeds Graham McBride in the management of the Fund and other mezzanine initiatives at VenGrowth. Graham will be leaving VenGrowth to pursue new career interests. Graham will, however, maintain a close relationship with VenGrowth and will continue as an on-going advisor to the VenGrowth Traditional Industries Fund Inc. and VenGrowth’s other mezzanine funds.

About VenGrowth Asset Management
VenGrowth is a premier Canadian private equity firm. Since 1982, VenGrowth has invested over $1.3 billion in almost 200 North American companies, working alongside business owners to maximize potential. VenGrowth manages assets on behalf of over 150,000 individual investors as well as leading pension funds, banks, insurance companies and family foundations. VenGrowth’s offices are located in Toronto (Corporate Headquarters), Ottawa and Montreal. For more information, please visit
www.vengrowth.com.

Media Inquiries:
Wesley Ollson
Director, Product Management and Communications
VenGrowth Asset Management Inc.
(416) 628-9263
wollson@vengrowth.com

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