Skylon Advisors Inc. today announced that it has agreed to sell its VentureLink group of labour-sponsored investment funds to the funds’ portfolio managers.

Under the agreement, Skylon will spin off its management contracts for the six VentureLink funds and related Community Small Business Investment Funds to a new entity that subsequently will be acquired by Geoff Horton, John Varghese and Jim Whitaker.

Skylon’s parent company, CI Financial, will continue to provide administrative and other services to the funds, which had $191.5 million in assets as of August 10, 2005.

Skylon agreed to the terms of the sale after six months of reviewing various offers from other parties.

“The purchase of the VentureLink funds by their portfolio managers, a highly experienced group of venture capitalists, will provide continuity and stability for the funds and their investors,” said David McBain, Skylon president and CEO, in a news release. “We look forward to continuing our excellent working relationship with this group.”

“We plan to build on the record of success we achieved with Skylon,” said Varghese, a Managing Director of Skylon.

With this transaction, Skylon and CI will no longer manage LSIFs. Skylon, which was purchased by CI in November 2003, will continue to manage its lineup of closed-end funds and other structured products.

“The management of venture capital funds is quite specialized in comparison to the management of other investment funds and products,” said McBain. “We have decided to focus our business in this segment on providing administration and other services.”

The sale is expected to close later this year, following the receipt of regulatory approvals and the required notification to the investors in the affected funds.