CAPE Fund aims for dual financial and social returns

March 11, 2009   -- Press Release.

Private Equity firm, CAPE Fund Management Inc. today announced a $50 million closing of CAPE Fund L.P. The Fund is the initiative of the Rt. Honourable Paul Martin and his son David Martin, who managed the process, taking it from a vision to reality and guiding it to a successful closing.

The Fund’s investors include many of Canada’s largest corporations, international foundations and private individuals. According to the former Prime Minister, "When I first approached the investors who are now part of CAPE Fund, I promised them nothing but a major effort at demonstrating that entrepreneurship and the role models it creates would make a difference in the lives of this and future generations of aboriginal Canadians. I cannot tell you how proud I am of the investors’ response, particularly in these difficult times.  We all have a responsibility to make our country a better place.  This is what motivated them. They recognized their responsibility, they recognized the need, and more than that they recognized that their leadership might help tip the balance.  Such is the stuff of society’s progress.”

The Fund’s sole investment focus will be to partner with Aboriginal groups and individuals to promote Aboriginal business, entrepreneurship and prosperity.  Fund management will work closely and pro-actively with its investee partners to ensure that appropriate governance, management, capital and network resources are brought to bear to successfully grow businesses and thereby generate both important social returns as well as acceptable risk adjusted financial returns for the Aboriginal communities involved.
“The creation of CAPE Fund reflects an emerging era of socially responsible investing, wherein knowledgeable investors realize that goals of generating financial returns, while concurrently generating positive social impact through business investment, are not mutually exclusive but often very much aligned,” says Peter Forton, Managing Director of the Fund.

Fund investments will generally be between $1 million and $7.5 million in the aggregate, per investee. These may occur in one or more rounds of investment.  Aboriginal businesses anywhere in Canada are eligible.  The Fund will invest in virtually all business segments albeit with some sector restrictions.  The Fund will proactively seek out both financial and industry partners to facilitate and accelerate the growth of its investee companies.   Fund Management is supported by an Investment Committee which includes, in addition to the Right Honourable Paul Martin and David Martin, successful Aboriginal and non-Aboriginal business people with significant experience and broad contact networks (see attached biographies). The Investment Committee will be an important resource to the Fund Manager in achieving its mission and objectives.

CAPE Fund will remain open to additional new investors for up to six months.

About CAPE Fund Management Inc.
Founded in 2008, CAPE Fund Management Inc. is headquartered in Montreal and manages the investment activity of CAPE Fund L.P. The management team is led by two partners, Peter Forton and Alex Farley, who together have over forty years experience in the Private Equity, Venture Capital and Investment Banking marketplaces at both regional and national levels.

Media Contact(s):
Peter Forton, Managing Director, CAPE Fund Management Inc.     514-982-3905
Lucie Santoro, Administrative Director, Martin Aboriginal Initiative   514-982-3911, cell: 514-758-9978