The shareholders of labour-sponsored investment fund manager Axis Capital Corp. have entered into an agreement with an affiliate of B.E.S.T. Capital Management Ltd. by which BEST will acquire full ownership of Axis Capital.

It deal is expected to go though by Feb. 1, 2006 after regulatory requirements and closing conditions have been met.

Axis Capital manages Axis Investment Fund Inc., an Ontario-based labour sponsored investment fund that focuses primarily on investing in privately held start-up software and wireless technology companies. The fund has been operating since 2002 and has approximately $14 million under management in nine portfolio companies including Ottawa-based companies, Liquid Computing, Trigence, Gridiron Software, Pointshot Wireless, Netistix, Infoterra, Elliptic, and Hyla.

“We believe that it is in the best interests of the shareholders of the fund to become part of a larger LSIF manager that shares the same management and investing style as Axis” said Doug Hewson, president and CEO of Axis Capital, in a release.

“We remain excited about our portfolio and the future for investors in Axis Investment Fund. My partners and I believe we have built a portfolio of promising startups focused on bringing cutting edge technology products to market to solve acute customer problemsl,” he added.

BEST, established in 1996, is experienced in raising, investing and managing venture capital and making investments in emerging sectors. The BEST Funds group currently manages the Business, Engineering, Science & Technology Discoveries Fund and B.E.S.T. Total Return Fund having a combined $60 million in assets.

“We are pleased to announce the acquisition of Axis Capital by BEST” said John Richardson, president of the BEST Funds group. “The potential of the companies in the Axis portfolio has not gone unnoticed by BEST, and we look forward to continued development and growth of the portfolio. The consistency in management style and approach make this an attractive acquisition and should make for a seamless transition.”