Venture capital investment doubles in Canadian firms

Buyout funds and private equity firms sank a record $10.9-billion (U.S.) into Canadian companies last year, more than double the $4.5-billion reported in 2005, Canada's Venture Capital and Private Equity Association reported yesterday. Fundraising by Canadian buyout funds also reached record levels, with $6.4-billion in new capital commitments, more than four times the $1.4-billion total raised in 2005. The interest in the asset class is being fuelled by strong returns, and increased investing opportunities as more firms choose to go private, said Rick Nathan, association president and managing director of Kensington Capital Partners.