CPE News (1.26.2023) – PenderFund Capital Management Ltd. has held an initial close for Pender Technology Inflection Fund II Limited Partnership with $50 million in committed capital.
Limited partners included lead investor, Export Development Canada (EDC) and including BMO Capital Partners, CIBC, Kinsted Wealth, Vancity and Pender Growth Fund Inc.
Launched in summer of 2022 and targeting at $100 million, PenderFund expects to close with additional closing(s) in the coming months.
Pender Technology Inflection Fund I was launched in 2018, final closed with $25 million in November 2020.
Pender Technology Inflection Funds are managed by Pender Ventures, an entity wholly owned by PenderFund Capital Management Ltd.
photo credit: PenderFund
News Release
Pender Ventures completes $50M first close for Pender Technology Inflection Fund II
VANCOUVER, British Columbia, Jan. 26, 2023 (GLOBE NEWSWIRE) — PenderFund Capital Management Ltd. (“Pender”) is pleased to announce a successful first close of $50M for the Pender Technology Inflection Fund II (“PTIF II” or “the Fund”).
The Fund is managed by Pender Ventures, the technology venture capital arm of Pender. Pender Ventures is targeting $100M for the Fund, and expects to close with additional commitments in the coming months.
Pender welcomes the renewed support of lead investor Export Development Canada (EDC). The Fund’s first close also received capital commitments from BMO Capital Partners, CIBC, Kinsted Wealth, Vancity and Pender Growth Fund Inc.
“We are thrilled to announce the first close of our second venture fund,” said Maria Pacella, Managing Partner of Pender Ventures. “The growth of our team and Fund would not be possible without the support of our limited partners, so we sincerely thank everyone who participated and look forward to this exciting new chapter.”
“Pender Ventures has a vision and a strong commitment to growing Canadian companies, that are making bold moves to grow and expand internationally,” commented Guillermo Freire, Senior Vice President, Mid-Market, EDC. “Like EDC, they also have a commitment to strong environmental, social, and governance practices. We both seek to support companies that make a positive impact in our world and uphold high governance standards that promote sustainable growth.”
“BMO Capital Partners is a strong believer in the capability of Canadian companies to drive innovation, growth and progress,” said Hanz Gin, Managing Director, BMO Capital Partners. “Our investment in Pender Ventures’ Technology Inflection Fund II reflects the relationship we have developed and our confidence in their ability to help accelerate the momentum of Canadian businesses that are focused on enterprise and healthcare technology solutions.”
Pender Ventures was launched in 2018, closing its first fund of $25 million in November 2020. The founding investment team’s vision was to accelerate Pender’s private investments into disruptive Canadian technology companies, while doubling down on Pender’s ‘inflection point’ thesis by focusing on fundamental investment principles: strong unit economics, tangible value creation and large market opportunities.
David Barr, CEO of Pender said, “Pender is thrilled with the momentum Pender Ventures has built in the last five years and we are excited to double down on our venture strategy, built on the foundation of a strong investment track record.”
Building on the success of Pender Ventures’ first fund, PTIF II will continue to invest in B2B software and health tech companies at the inflection point between commercialization and scale. Pender defines this stage as a turning point for companies when early results indicate product-market fit and the next phase of their evolution being to achieve scale.
The Fund’s largest area of focus will be health tech – specifically, B2B software companies that improve healthcare delivery, also known as health IT. Another key area of focus for PTIF II will be vertical SaaS. Pender Ventures will seek out companies that address a well-defined problem and customer set, operate in markets that are less competitive and have clear paths to profitability and exit.
The increased fund size has enabled Pender Ventures to grow the size and scope of its venture team as it looks to become a truly pan-Canadian firm. Pender Ventures made two strategic hires in 2022: Isaac Souweine as Venture Partner and Meryeme Lahmami as Principal. Based in Montreal, Isaac and Meryeme will help Pender Ventures expand its investment activity across the country and contribute to Canada’s rapidly growing innovation ecosystems.
Pender Ventures is actively seeking out resilient companies with diverse teams that can efficiently transform capital into tangible value. This includes bootstrapped companies that have grown capital efficiently, as well as venture-backed companies that have strong fundamentals and a track record of transforming venture investment into revenue. Pender Ventures will continue to lead priced rounds or join syndicates through the Fund.
Thanks to the support of investors, Pender Ventures has already completed three investments in the Fund: DistillerSR (Formerly Evidence Partners), Traction Rec and Traction Complete, and is actively assessing investment opportunities.
Pender Ventures is welcoming inquiries and collaboration from entrepreneurs and co-investors from across Canada.
About Pender Ventures
Pender Ventures is the technology venture capital arm of Pender. To learn more about Pender Ventures and its investments, please visit www.penderventures.com.
Pender Ventures is the brand of Pender Private Equity Fund Management Inc. (‘Pender Private Equity’) which is the private technology company investing arm of PenderFund Capital Management Ltd.. Pender Private Equity is 100% owned by PenderFund and has the same mind and management as PenderFund.
For more information, please visit www.penderventures.com
About PenderFund Capital Management Ltd.
Pender was founded in 2003 and is an independent, employee-owned investment firm located in Vancouver, British Columbia. Our goal is to protect and grow wealth for our investors over time. We have a talented investment team of expert analysts, security selectors and independent thinkers who actively manage a suite of differentiated private and public equity, and fixed income investment funds, exploiting inefficient parts of the investing universe to achieve our goal. Please visit www.penderfund.com.
About EDC
Export Development Canada is a financial Crown corporation dedicated to helping Canadian businesses make an impact at home and abroad. EDC has the financial products and knowledge Canadian companies need to confidently enter new markets, reduce financial risk and grow their business as they go from local to global. Together, EDC and Canadian companies are building a more prosperous, stronger and sustainable economy for all Canadians. For more information and to learn how we can help your company, call us at 1-800-229-0575 or visit www.edc.ca.
About BMO Capital Partners
Established in 1998, BMO Capital Partners is a Canadian-based investor with C$1.5 billion under management. Its evergreen investment program is built upon minority/non-control equity co-investments and subordinated debt as well as venture, growth and private equity funds. The fund invests across a broad range of industries to support companies in all stages of growth, with acquisitions, buyouts, expansions, restructurings and growth capital. As part of BMO Financial Group, a highly diversified financial services provider – the 8th largest bank by assets in North America, BMO Capital Partners provides a single point of access to an integrated suite of commercial banking, capital markets, and wealth management solutions. For more information, please visit www.linkedin.com/company/bmo-capital-partners.
Please read important disclosures at www.penderventures.com/disclaimer.
For further information, please contact:
Kelsey Wokke
Marketing Manager, PenderFund Capital Management Ltd.
kwokke@penderfund.com
(604) 688-1511
Toll Free: (866) 377-4743