A unique partnership has been formed between government, a group of Saskatchewan credit unions and Prairie Financial Management to establish a Saskatchewan-based venture capital fund.

Prairie Ventures Fund is expected to raise up to $60 million in capital over the next five years for new or expanding companies in Saskatchewan.

"This fund will help fill the venture capital gap in our province and provide new and existing companies with the funding they need to start up or expand," Crown Investments Corporation Minister Maynard Sonntag said. "The fund will target projects in agriculture and further processing, manufacturing, information technology, biotechnology, forestry, oil and gas development, industrial minerals and tourism. These sectors are crucial to economic development and job creation in our province."

CIC will invest up to $5 million a year in the fund for five years, to a maximum of $25 million. Up to $35 million will be leveraged from the private sector. The fund will focus on making investments in the range of $500,000 to $2.5 million. At least 80 per cent of the fund's capital will be invested in Saskatchewan-based projects.

Eighteen Saskatchewan credit unions have made a commitment to contribute a total of $3 million to the fund.

"This is a visible commitment of the credit union system's faith in the Saskatchewan economy and our willingness to play a part in helping it grow," Sherwood Credit Union Chief Executive Harvey Granatier said, on behalf of the credit unions that joined the partnership. "The fact we have credit unions from every corner of the province representing big communities and small ones is a clear demonstration of our support."

Prairie Financial Management will invest $750,000 in the fund. The Regina- based company will manage the fund and promote it to raise capital from the private sector. Prairie Financial also manages a labour-sponsored venture capital fund and a capital pool company.

"There is an overall shortage of investment capital in the province," Prairie Financial partner Randy Beattie said, who will serve as president of Prairie Ventures Fund. "We also think it's extremely important the human capital be expanded as well so we can build a bigger overall financial industry. This partnership represents a commitment to building from within to create a stronger, more vibrant investment industry right here at home."

For more information, contact:

Ted Boyle
Crown Investments Corporation
Regina
Phone: (306) 787-9039

Harvey Granatier
Sherwood Credit Union
Regina
Phone: (306) 780-1707

Randy Beattie
Prairie Financial Management
Regina
Phone: (306) 791-4833

Participating Credit Unions