TORONTO, December 6, 2006 - VenGrowth Asset Management Inc. and its affiliates ("VenGrowth"), a leading alternative investment firm with over $1 billion in assets under management, today announced that The VenGrowth Investment Fund Inc. ("VenGrowth I Fund") has been re-opened to existing Ontario shareholders.
A flagship Canadian venture fund launched in 1995, VenGrowth I Fund has built a portfolio of some of Canada's leading venture-backed companies. The Fund was previously closed to both new and existing investors in 1999 to allow its venture portfolio to mature. The Fund had net assets of $256 million and over 65,000 shareholders as at November 30, 2006.
By re-opening the Fund, VenGrowth is enabling eligible investors to "rollover" their original investment and generate the opportunity for immediate new tax credits of 30% in federal and Ontario tax credits.
"We're extremely pleased to be able to reward the patience of our investors with the opportunity to generate further tax savings and remain invested in a portfolio with significant upside potential," said David Ferguson, VenGrowth Managing General Partner.
"Over the past five years, the portfolio of private companies held by the Fund has continued to strengthen and mature, to the point that the average annual revenue per company is now in excess of $40 million." added Mr. Ferguson. "With an improving technology environment, we believe the Fund's portfolio companies are well positioned to be exited over the next several years by way of sale to strategic industry players or going public on a stock exchange."
Investment advisors with clients that hold VenGrowth I Fund shares can contact VenGrowth at 1.877.789.7070 for more information.
About VenGrowth I Fund
The Fund aims to achieve long-term capital appreciation through backing small- and medium-sized eligible Canadian businesses in a range of industry sectors; many of such entities being considered later-stage investments on the spectrum of venture capital investment opportunities. In addition to expert management, the Fund offers investors long-term performance potential, 100% RRSP-eligibility and, through its labour-sponsored investment fund structure, eligibility for substantial tax credits. The Fund had net assets of $256 million and over 65,000 shareholders as at November 30, 2006.
About VenGrowth
VenGrowth is dedicated to providing Canadians with superior, value-added investment alternatives through its affiliates VenGrowth Private Equity Partners Inc. and Criterion Investments Limited. Founded in 1982, VenGrowth today manages over $1 billion in private equity and structured product assets on behalf of over 200,000 individual investors and leading pension funds, banks, insurance companies and family foundations. VenGrowth's offices are located in Toronto (Corporate Headquarters) and Ottawa. For more information, please visit www.vengrowth.com.
VenGrowth I Fund Returns (%): 1 yr 5.71%, 3yrs -2.38%, 5 yrs -5.67%, Since Inception 1.59% (as at November 30, 2006).
Media Inquiries:
Angus Fisher
Manager, Media & Communications
VenGrowth Asset Management Inc.
(416) 628 9255
afisher@vengrowth.com
