NETHERLANDS/CANADA - Stichting Pensioenfonds ABP (ABP) and Ontario Municipal Employees Retirement System (OMERS) have launched an investment programme which will allocate €200m (US$246m) in Dutch and Canadian start-up companies.
The 15-year programme will invest in new companies "with innovating ideas and technologies" and will be known as INKEF Capital, (Investing in the Knowledge Economy of the Future).
The two pension funds said INKEF Capital will maintain a long-term investment horizon and offer active mentoring to the start-ups it invests in.
ABP and OMERS will each provide half of the funding for the programme and expect to invest €100m (US$122m) in the first five years.
"ABP and OMERS expect to achieve an attractive return, in line with the risk profile of these investments," the two funds said in a statement. "Both partners regard collaboration between pension funds in programs for direct investment as a promising new strategic option, both in this asset class as in others.
"The initial portfolio will naturally be weighted towards early stage companies which will mature over the 15 year term. Deal flow will come from various sources, including technology transfer offices of universities, informal investors, regional funds and from spin-offs of new technologies by existing companies."