Teralys Capital Closes $375 Million Fund of Funds

Montreal-based Teralys Capital says it has closed a $375 million fund of funds, making it “largest innovation-focused investor in Canada.”

With the new Teralys Capital Innovation Fund, the firm now has over $1.6 billion in venture capital under management.

“The fund intends to seek top tier financial returns by structuring investments in private venture capital funds specialized in innovation,” Jacques Bernier, a managing partner at Teralys Capital, said in a release. “On a long-term basis, these investments will support a profitable and globally competitive venture capital industry, and will allow skilled managers to emerge and to attract the funds required to accelerate the growth and success of our best innovation-driven entrepreneurs.”

The fund of funds was raised with the support of the Quebec Government and is similar to Ontario’s Northleaf Venture Catalyst Fund, which also raised a mix of private and public money.

Investing in the Teralys Capital Innovation Fund were some of Quebec’s largest pension fund managers, the Caisse de dépôt et placement du Québec, Fonds de solidarité FTQ and Fondaction CSN.

They’re joined by BDC Capital, the National Bank of Canada and the Desjardins Group, the largest association of credit unions in North America.

Teralys says it also received investments from public companies including Knight Therapeutics and OpenText Corporation as well as “successful Montreal entrepreneurs who created thousands of job and billions of dollars in economic development impact locally.”

The fund of funds will foster “the development of high potential innovative businesses across Canada,” Éric Legault, a managing partner at Teralys Capital, said in the release. “Enabling profitable local economic development and job creation … while generating superior financial returns for all stakeholders.”

Teralys says the fund will make investments across Canada in all venture-backed sectors – information technology, life sciences and “clean or industrial innovations.” It will also invest in companies at all stages of growth.

The fund of funds has already made 10 investments in Canadian venture capital funds and made five direct investments in companies, that list includes Zymeworks, Lightspeed, eSentire and Luxury Retreats.