Canada-based enterprise software provider OpenText has committed an undisclosed amount of funding to Kensington Venture Fund, a private and public sector-backed fund-of-funds that reached a C$160m ($141m) first close yesterday.
OpenText was among a group of investors, also including financial services firms BMO Financial Group, CIBC, Royal Bank of Canada, Scotiabank and TD Bank Group, wealth management firm Richardson GMP and additional undisclosed private investors, that provided C$107m for the fund.
The Canadian government contributed a further C$53m through venture capital organisation BDC Capital.
The government’s involvement in the fund was part of its Venture Capital Action Plan (VCAP), a C$400m initiative launched in January 2013, through which it has pledged to commit C$1 for every C$2 provided by private investors.
The plan has been slow in being implemented, but the government’s involvement in the Kensington fund could indicate that it will move forward with additional investment imminently. OpenText, is raising its own C$100m fund, which is expecting to secure VCAP funding before it closes.
Kensington Venture Fund will generally invest in early-stage and mid-stage venture capital funds that focus on energy technology, cleantech, and information and communications technologies.
Investment firm Kensington Capital Partners, which is acting as general partner for the fund, will seek to secure additional limited partners and expects to reach final close in 2015.