Omers Administration Corp., one of Canada's largest pension fund managers, plans to increase its allocation in venture capital investments to as much as 3% of its investment capital.
Omers oversees the investments of the Ontario Municipal Employees Retirement System, which had C$44 billion ($39.4 billion) in assets as of the end of 2008.
The pension fund's chief executive, Michael Nobrega, said in an interview with Reuters on Wednesday that the fund plans to increase its allocation of funds to VC this year to 2% to 3% of total assets.
"By the end of the summer perhaps, it will be done this year," said Nobrega, speaking ahead of the Canadian Venture Capital Association annual meeting, which will be held this week in Calgary, Alberta.
The fund's annual report shows that as of the end of 2008, it had 8.5% of its capital in private equity, which would include venture capital. It did not break out VC separately. It had 16% of its funding in infrastructure and 15% in real estate. More than 60% of its capital was invested in public markets, but Nobrega said that is already changing.
"We may tweak that to make it closer to 50-50," Nobrega told Reuters, referring to the split between public and private markets. The report said the public market portion has already fallen to 57%.
The Canadian venture capital market could certainly use the boost as its funding and investment this year have plunged to six-year lows amid the current recession, and the CVCA has termed the situation a crisis.
The industry has received some good news lately as Ontario has established a C$250 million Emerging Technologies Fund, Quebec has teamed up with institutional investors to launch a C$700 million fund-of-funds, and the Canadian government, through the Business Development Bank of Canada, has contributed C$75 million into a new later-stage fund, which it hopes will close at C$300 million. - Peter Moreira
Continue reading below
