Yaletown Partners initial closes Yaletown Innovation Growth II at $130M

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By CPE News

CPE News (8/4/2021) – Yaletown Partners has held an initial close for Yaletown Innovation Growth II LP with $130 million in committed capital.

Limited partner (LP) investors include PSP Investments, Ontario Capital Growth Corporation (OCGC), BDC, family offices, foundations, and private investors.

With a fundraising target of $200 million, Innovation Growth Fund II will finance and support the disruption and modernization of traditional industries through the application of data and technologies, including machine learning, artificial intelligence, software-defined systems and the Industrial Internet of Things (IIoT).

Yaletown Innovation Growth LP is a $128 million 2017-vintage fund with Ontario Government’s OCGC committing $20 million.

photo credit: Yaletown Partners

News Release

Yaletown Partners Announces Closing of Innovation Growth Fund II

VANCOUVER, BC, Aug. 4, 2021 /CNW/ – Today, Yaletown Partners (“Yaletown”) announced the first close of its $200 million Innovation Growth Fund II (“IGF II”). IGF II’s capital comes from a diverse group of leading institutional investors, including global pension funds, financial institutions, family offices, foundations, and a network of successful technology entrepreneurs. With the first closing of $130 million, the active Yaletown funds now exceed $375 million. IGF II follows and will build on the success of Yaletown’s Innovation Growth Fund I (“IGF I”) which closed in 2018.

Yaletown’s IGF II is a pan-Canadian platform, focused on enabling and driving digital transformation and dedicated to closing the scale-up capital gap. The fund will finance and support the disruption and modernization of traditional industries through the application of data and technologies, including machine learning, artificial intelligence, software-defined systems and the Industrial Internet of Things (IIoT). By enabling the digital transformation of industries, in what Yaletown calls the Intelligent Industry, the fund will continue to back companies creating substantial operational efficiencies thereby reducing the impact on climate change and driving financial returns for customers.

“We are grateful to our investors who share our belief in, and commitment to, climate-resilient growth generated by ground-breaking technology, for a digitally-led future. We are privileged to invest in Canadian entrepreneurs and technologies that are fundamentally changing the way industries operate around the world to reduce climate impact. Our companies employ over 2,000 people and sell their solutions globally. Our firm is present and active in all major technology ecosystems in the country with teams in Montreal, Toronto, Calgary, Edmonton and Vancouver,” said Salil Munjal, Managing Partner at Yaletown.

“Responsible investing principles have always formed the core of our ethos and it is more important now than ever to ensure that our returns and investing decisions are driven by a commitment to people and the planet. We have long believed, and are proud to demonstrate, that the smart and intentional management of environmental, social and governance (ESG) risks and opportunities is not only complementary to our investment thesis but that it is a driver of excellent execution and results,” said Sophie Gupta, Principal & Head of Responsible Investing at Yaletown.

Comments from select key investors in IGF II:

“PSP Investments’ Complementary Portfolio pursues knowledge-driven strategies alongside expert partners who provide differentiated and relevant insights. We are excited to support Yaletown’s IGF II whose Canadian innovation mandate is aligned with PSP’s sustainability and ESG objectives. Its focus on digital transformation will benefit many industries through operational efficiencies, driving both financial returns and positive impact on climate change,” said Adam Smalley, Managing Director, Complementary Portfolio, PSP Investments.

“Venture capital firms have an important role to play in helping entrepreneurs meet Canada’s ambitious greenhouse gas emission targets. We are delighted to be limited partners in Yaletown’s Innovation Growth Fund I and II with its focus on the opportunity of Intelligent Industries to reduce consumption and drive sustainable, climate-resilient economic growth to create a greener, cleaner, and more prosperous Canada,” said Alison Nankivell, Senior Vice President, Funds Investments, BDC.

“OCGC is pleased to recommit to IGF II further to its commitment in IGF I. Yaletown is an active investor in companies scaling up in Ontario and that are enabling the next industrial revolution in areas such as smart buildings, next generation supply chain technologies and a more energy efficient electrical grid. We believe Ontario companies are world leading and ensuring they receive venture capital is key to their success,” said Brenda Hogan, Chief Investment Officer of the Ontario Capital Growth Corporation.

“Our investment in Yaletown’s IGF II will help provide Alberta’s most innovative companies with the capital they need to accelerate their growth and compete on a global scale,” stated Kristina Williams, Chief Executive Officer at Alberta Enterprise Corporation. “We are pleased to continue our long-standing relationship with Yaletown, their expertise and network in the Intelligent Industry is a great benefit to the Alberta tech ecosystem.”

About Yaletown Partners: Yaletown Partners is a leading Canadian venture capital fund manager that invests in the technologies digitally transforming traditional industries by prioritizing climate-resilient growth. In 2017, Yaletown received the CVCA’s Venture Capital Deal of the Year award for its investment in BitStew. Backed by leading institutional investors, including pension funds, and a network of successful technology entrepreneurs, Yaletown has offices in Vancouver, Calgary, Edmonton, Toronto, and Montréal.

About PSP Investments: The Public Sector Pension Investment Board (PSP Investments) is one of Canada’s largest pension investment managers with $204.5 billion of net assets under management as of March 31, 2021. It manages a diversified global portfolio composed of investments in public financial markets, private equity, real estate, infrastructure, natural resources and credit investments. Established in 1999, PSP Investments manages and invests amounts transferred to it by the Government of Canada for the pension plans of the federal Public Service, the Canadian Forces, the Royal Canadian Mounted Police and the Reserve Force. Headquartered in Ottawa, PSP Investments has its principal business office in Montréal and offices in New York, London and Hong Kong. For more information, visit investpsp.com or follow us on Twitter and LinkedIn.

About BDC Capital: BDC Capital is the investment arm of BDC, the bank for Canadian entrepreneurs. With over $3 billion under management, BDC Capital serves as a strategic partner to the country’s most innovative firms. It offers businesses a full spectrum of capital, from seed investments to growth equity, supporting Canadian entrepreneurs who have the ambition to stand out on the world stage. Visit bdc.ca/capital.

About OCGC: Ontario Capital Growth Corporation (OCGC) is the venture capital investment agency of the government of Ontario. OCGC was created to promote and develop the venture capital sector in Ontario, to assist high potential technology companies access the capital they need to grow and prosper.

About Alberta Enterprise Corporation: Alberta Enterprise Corporation promotes the development of Alberta’s venture capital industry by investing in venture capital funds that finance technology companies. We focus on funds that have a strong commitment to Alberta – including a full-time presence in the province. In addition to capital, we support Alberta’s venture capital ecosystem by connecting investors, entrepreneurs, and experienced technology executives who share our passion for building a bright, innovative Alberta. Since our inception we have committed C$234 million for investment to twenty-two VC funds including Accelerate Funds I, II and III, covering a diverse range of forward-looking industries including information technology, industrial technology and life sciences.

SOURCE Yaletown Partners

For further information: Ashton Arsenault, Crestview Strategy, Ashton.Arsenault@crestviewstrategy.com, 613-914-1035