Covington Capital Corp. Returns Over $1.2 million to Ontario Universities under the Community Small Business Investment Funds Program
Covington Capital Corp. (“Covington”) announced today that it would be returning over $1.2 million dollars to The University of Western Ontario and Queen’s University as a result of their involvement with the UWO Internet Ventures Fund and the PARTEQ Internet Ventures Fund (“PARTEQ”). This represents a substantial return for both Western and Queen’s, and two of the most significant returns achieved under the CSBIF program. Covington is proud to be able to give back to our community sponsors and to support the ongoing growth and development of these leaders in education.
The proceeds are a result of one of the most successful exits in the venture capital marketplace over the past 12 months – the USD$205 million acquisition of PlateSpin Ltd. by Novell, Inc. Founded in 2003, PlateSpin became a leader in the development of advanced automation software solutions for data centres throughout the world.
PlateSpin is an excellent example of the importance of venture capital in funding and developing Canada’s innovation, economic growth and development, as well as this country’s talented entrepreneurs. In less than five years, PlateSpin grew from a small enterprise with just over 10 employees to a company with global presence. “PlateSpin is a true success story and a testament to what can be achieved with the right combination of venture capital support, a talented team, and the identification of the right market opportunity,” states Philip Reddon, Managing Director, Covington Capital Corp.
Covington’s involvement in the CSBIF program (the “Program”) began over a decade ago. Via the Program, Covington has funded several start-up and early stage ventures throughout Ontario. Covington is pleased to have fostered strong relationships with our university partners, and the community at large, that have led to the success of the Covington CSBIF program.
The return of capital to Queen’s and Western represents the successful completion of the life-cycle of these CSBIF programs. “From raising capital throughout Ontario and deploying that capital to fund local entrepreneurs, to then returning a significant profit back to the founding partners is exactly what the CSBIF program was created to achieve,” notes Mr. Reddon.
“Both of our institutions are fortunate to have had the opportunity to partner with Covington in turning concepts and research into Canadian venture successstories,” says John Molloy, President and CEO of PARTEQ Innovations, the technology transfer office of Queen’s University.
“We are delighted to accept this significant financial contribution,” said Ted Hewitt, Vice-President (Research & International Relations) at Western. “These funds will be used to continue to build bridges between the private sector and advanced research now underway, and to pave the way for improved health and prosperity.”
About Queen’s University
One of Canada's leading universities, Queen's has an international reputation for scholarship, research, and a diverse and vibrant learning environment. With its strong tradition of public service, the University has helped to shape Canadian values and policies, educating many of the country's most notable political and cultural figures.
About PARTEQ Innovations
PARTEQ Innovations is the not-for-profit technology transfer arm of Queen’s University. PARTEQ works with Queen’s researchers and the business and venture capital communities to bring early stage technologies to market. Since 1987 PARTEQ has been instrumental in the establishment of more than 40 companies developing a variety of products, from potential drugs for Alzheimer’s, cancer and heart disease to automated bacteria detection for water systems, solar-powered appliances, and advanced materials used in the plastics, automotive, aerospace and household appliance industries.
About The University of Western Ontario
With annual research expenditures of more than $223 million and an international reputation for success, The University of Western Ontario ranks as one of the top ten research-intensive universities in Canada. Offering Canada’s best student experience among its peers, Western and its affiliated research institutes provide a culture that encourages entrepreneurial research and innovation.
About Industry Liaison at Western
Now part of London's new city-wide technology transfer venture, Industry Liaison helps researchers at Western build value for their inventions, technologies and intellectual property, and also serves as a conduit for business development with industry partners. With 17 successful spin-offs since 1996 and more than 200 reports of invention in the past five years, Industry Liaison adds value to more than 60 research discoveries Western generates annually.
About Covington Capital Corporation
Founded in 1994, Covington Capital Corp. (www.covingtonfunds.com) is one of Canada’s largest and most experienced venture capital investors. Covington Capital manages over $450 million in venture capital assets on behalf of institutional and retail investors. These funds invest in small-and-medium businesses throughout many industry sectors. Headquartered in Toronto, Covington Capital is an affiliate of Affiliated Managers Group, Inc. AMG is an asset management company with equity investments in a diverse group of boutique investment management firms. AMG’s strategy is to generate growth through the internal growth of its existing Affiliates, as well as through investments in new Affiliates.
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