Stichting Pensioenfonds ABP, Heerlen, Netherlands, and Ontario Municipal Employees Retirement System, Toronto, launched INKEF Capital, a new joint initiative to invest an estimated €200 million ($246 million) in start-ups in the next five years, according to a joint news release.
Each fund owns 50% of the joint venture.
The investment vehicle will target early-stage companies, with deal flows sourced from various areas including “technology transfer offices of universities, informal investors, regional funds and from spinoffs of new technologies by existing companies,” according to the release.
Each fund will contribute about €100 million, with the total to be invested about equally in Canada and the Netherlands.
ABP’s funding will come from new cash inflows on an “as needed” basis and will not result in a reduction of any other portfolios, said Harmen Geers, spokesman for APG, money manager of the €220 billion ABP.
John Pierce, spokesman for the C$47.8 billion ($47 billion) Ontario fund, could not be reached by press time for additional information about how the initiative is being funded.
INKEF is the acronym for “Investing in the Knowledge Economy of the Future,” according to the release.