Key Takeaways
- • Kensington Capital Partners announced it has raised more than $150 million in the first close of Kensington Venture Fund III (KVFIII), toward an ultimate target of $290 million.
- • KVFIII is a hybrid vehicle that will allocate 75% of invested capital to venture capital funds and 25% to direct investments in technology companies, with a primary focus on Canada.
- • The fund is being launched under the Government of Canada's Venture Capital Catalyst Initiative (VCCI), marking the third Venture Fund Kensington has launched with the program.
- • Backers include BDC, Kensington Private Equity Fund, TD Bank, and several individual investors and family offices.
- • Kensington, an employee-owned firm founded in 1996 with $2.6 billion in assets under management, is now actively pursuing fund and company investments for KVFIII.
Summary
Kensington Capital Partners, a Toronto-based alternative investment firm, announced on April 6, 2023 that it has raised more than $150 million in the first close of Kensington Venture Fund III (KVFIII), according to a Business Wire release. The fund has an ultimate target size of $290 million.
KVFIII follows the firm's hybrid strategy used in its previous funds. It will operate as a fund-of-funds investing in venture capital funds and as a direct investor in promising technology companies. The portfolio will allocate 75% of invested capital into funds and the remaining 25% into direct company investments, with a primary focus on the Canadian market. The fund invests across all stages, from early-stage Seed and Series A through later-stage technology growth, and covers subsectors including artificial intelligence, industrial automation and robotics, cybersecurity, life science and healthcare, energy and sustainability technologies, and tech-enabled services. Kensington invests primarily across Canada and the United States, acting as lead investor or supporting syndicate member.
The fund is being launched under the Government of Canada's Venture Capital Catalyst Initiative (VCCI). Rick Nathan, Senior Managing Director at Kensington Capital, described the renewed selection as a fund manager for the program as a strong endorsement of the team, investment process and strategy, and noted this is the third Venture Fund the firm has launched with the Government of Canada.
BDC is among the anchor backers. Jérôme Nycz, Executive Vice President of BDC Capital, said the renewed VCCI commitment positions Kensington to provide capital to fund managers and entrepreneurs at a time it is most needed, while advancing diversity, equity and inclusion in the Canadian VC industry. Other backers include Kensington Private Equity Fund, TD Bank, and several individual investors and family offices.
Kensington, founded in 1996 and employee-owned, has offices in Toronto, Vancouver and Calgary and manages $2.6 billion in assets across several active funds. The firm cites a 27-year track record and a strong commitment to ESG principles across its firm and portfolios. It is now actively pursuing investments for KVFIII in new venture funds and emerging companies.
KVFIII follows the firm's hybrid strategy used in its previous funds. It will operate as a fund-of-funds investing in venture capital funds and as a direct investor in promising technology companies. The portfolio will allocate 75% of invested capital into funds and the remaining 25% into direct company investments, with a primary focus on the Canadian market. The fund invests across all stages, from early-stage Seed and Series A through later-stage technology growth, and covers subsectors including artificial intelligence, industrial automation and robotics, cybersecurity, life science and healthcare, energy and sustainability technologies, and tech-enabled services. Kensington invests primarily across Canada and the United States, acting as lead investor or supporting syndicate member.
The fund is being launched under the Government of Canada's Venture Capital Catalyst Initiative (VCCI). Rick Nathan, Senior Managing Director at Kensington Capital, described the renewed selection as a fund manager for the program as a strong endorsement of the team, investment process and strategy, and noted this is the third Venture Fund the firm has launched with the Government of Canada.
BDC is among the anchor backers. Jérôme Nycz, Executive Vice President of BDC Capital, said the renewed VCCI commitment positions Kensington to provide capital to fund managers and entrepreneurs at a time it is most needed, while advancing diversity, equity and inclusion in the Canadian VC industry. Other backers include Kensington Private Equity Fund, TD Bank, and several individual investors and family offices.
Kensington, founded in 1996 and employee-owned, has offices in Toronto, Vancouver and Calgary and manages $2.6 billion in assets across several active funds. The firm cites a 27-year track record and a strong commitment to ESG principles across its firm and portfolios. It is now actively pursuing investments for KVFIII in new venture funds and emerging companies.
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