Covington Capital Corp. announced today that it will assume the role of investment specialist for New Generation Biotech Equity Fund Inc. and New Generation Biotech Balanced Fund Inc. from Genesys Capital Partners Inc.

It was mutually agreed by Covington and Genesys that this approach would serve the best interests of the funds’ investors as a result of cost savings realized through a decrease in management fees.

Covington also announced today that New Generation Biotech Equity Fund sold portions of its positions in Affinium Pharmaceuticals Inc., Epocal Inc., and NeurAxon Inc. to an institutional purchaser; thereby providing cash liquidity for the gund. An affiliate of Genesys will provide certain investment management services to that institutional purchaser. The gund maintains positions in each of these three portfolio companies.

Covington says the change of investment specialist is reflective of the maturity of the investment portfolios. With the portfolios of the funds maturing, management’s focus has shifted toward managing costs, providing liquidity and securing exit opportunities for the existing portfolio holdings.

Covington and Genesys have a strong working relationship and the investment specialist role will be transitioned in a timely and constructive manner, Covington adds.

“Given the maturity of the portfolio, this is the right time for Covington to assume the role of investment specialist, and a logical progression in the life-cycle of the funds,” the company says.

The company “is well-suited to step into the role of investment specialist and actively manage the portfolio through to the end of its natural life cycle.”

Headquartered in Toronto, Covington Group of Funds manages over $450 million in venture capital assets on behalf of institutional and retail investors.

http://www.newswire.ca/en/releases/archive/September2008/17/c5615.html