VenGrowth today confirmed that the current RRSP season represents a final opportunity for Canadians to invest in VenGrowth II. The fund will close to new investors following the RRSP season which ends March 1, 2004.

VenGrowth II, launched in January 2000, is Canada’s largest labour sponsored investment funds with net assets of $487.4 million and over 100,000 existing investors as of Dec. 31, 2003.

In response to the capping, VenGrowth will launch a LSIF. The new fund, expected to be named VenGrowth III, will mirror the conservative, late stage investment strategy pioneered by VenGrowth’s first two flagship funds — VenGrowth I and II.

“Capping VenGrowth II after it has enjoyed a series of successful fundraising years, will allow the broad portfolio of companies to mature in unison, increasing return potential for investors,” said Deborah Gray, senior VP sales & marketing, managing general partner of VenGrowth Capital Partners Inc., in a news release. “This RRSP season represents a final chance for investors to buy into this existing pool of well-established companies.”

“Two decades of managing private equity funds on behalf of individuals and institutions tells us that you reach a stage where it is best practice to cap a fund to allow shareholders to benefit from a maturing portfolio. VenGrowth II, with close to $500 million in net assets and a rich portfolio of investee companies, has reached that stage,” explained Earl Storie, founder and managing general partner of VenGrowth Capital Partners Inc.

The fund is invested in 60 predominantly later-stage companies with excellent growth prospects. The portfolio is spread across a broad range of industry sectors spanning Internet infrastructure, enterprise software, communications, semiconductors, traditional industries, life sciences and other special growth opportunities.

Despite being one of the most active Canadian venture funds over the last three years, VenGrowth II remains liquid with 27% of the portfolio held in cash at Dec. 31, 2003.