Kensington Capital Partners announced that it has raised over $150 million in the first close of Kensington Venture Fund III (KVFIII) towards an ultimate fund size of $290 million. And in alignment with the firm’s hybrid strategy for its previous Funds, KVFIII will serve as both a fund-of-funds investing in venture capital (VC) funds and a direct investor in promising technology companies.
This fund – which is being launched under the Government of Canada’s Venture Capital Catalyst Initiative (VCCI) – is backed by BDC, Kensington Private Equity Fund, TD Bank, and several individual investors and family offices.
As one of Canada’s leading alternative investment firms focused on private markets, Kensington has a 27-year track record of successful growth and a strong commitment to ESG principles across the firm and investment portfolios.
Kensington is now actively pursuing investment opportunities for KVFIII in new venture funds and in emerging companies. And the KVFIII portfolio will allocate 75% of invested capital into funds with the remaining 25% targeted at direct investments into companies. The fund as a whole will have a primary focus on the Canadian market.
KEY QUOTES:
“We have established a proven model for successful performance in venture investing, and our new fund builds on that successful track record. This is the third Venture Fund we are launching in partnership with the Government of Canada. Kensington’s renewed selection as a fund manager for the VCCI program is a strong endorsement of our team, our investment process, and strategy.”
— Rick Nathan, Senior Managing Director, Kensington Capital
“It’s a priority for BDC Capital to invest in Canada’s most innovative companies so they can continue to create jobs and support sustainable economic growth across the country. With this renewed commitment from the VCCI, Kensington is now in a strong position to provide important capital to fund managers and entrepreneurs in a time when it’s most needed, all while advancing diversity, equity and inclusion in the Canadian VC industry.”
— Jérôme Nycz, Executive Vice President, BDC Capital
