21 October 2004
EdgeStone announces first closing of EdgeStone Capital Venture Fund II, L.P.

TORONTO, Oct. 21 /CNW/ - EdgeStone Capital Partners, one of Canada's leading independent private capital managers, announced today that it successfully completed a first closing for EdgeStone Capital Venture Fund II, L.P. With commitments in excess of $102 million, this first closing increased EdgeStone's total venture capital assets under management to over $205 million. EdgeStone is targeting a final closing for Venture Fund II of up to $200 million. Venture Fund II will focus on early stage enterprise software and related service companies.

"We are very pleased to have successfully completed the first closing of our next venture capital fund," said Samuel L. Duboc, President and Managing Partner of EdgeStone Capital Partners. "We are encouraged that all of the institutional investors who participated in our first venture capital fund returned as investors together with a group of new investors. They have demonstrated their continuing collective confidence in our successful investment strategy."

Venture Fund II makes equity and equity-related investments in Canadian enterprise software companies with working products and global market opportunities. The Fund is a lead investor, working with the management teams of portfolio companies to build dominant, scalable and valuable global businesses. Venture Fund II has already made one investment of $4 million and has a number of other transactions under contract.

"Fund II will follow the same successful investing strategy employed with our predecessor venture capital fund. We are excited about both our Fund I and Fund II portfolios," said Bryan W. Kerdman, Partner responsible for Venture investing at EdgeStone. "We are well positioned to maintain our leadership as one of the top performing venture funds in Canada with a dedicated, experienced team having more than 50 years cumulative experience investing in and operating highly successful Canadian growth companies."