EDC commits up to $10 million in equity to XPV Water Fund

OTTAWA, March 2 /CNW Telbec/ - Export Development Canada (EDC) today announced up to USD 10 million in equity commitments to XPV Water Fund Limited Partnership (the Fund), which is a Canadian venture capital fund of up to USD 150 million focused on growth investments in the water sector, an area of significant growth potential for Canada.

"EDC's investment in XPV's Water Fund is intended to help build Canada's next generation of companies in the water sector, whose services and products will be in high demand around the world as the need for freshwater continues to increase," said Stephen Poloz, Senior Vice-President, Financing, EDC.

"EDC's lead commitment played a pivotal role in our fundraising success because it gave us the necessary credibility and momentum to attract other world class investors," said David Henderson, Managing Director, XPV Capital Corporation.

XPV is one of the few investors in the world with a team of experienced water industry and growth equity investment professionals, with a specific focus on this growth sector. Southern Ontario is home to a number of successful water companies around the Great Lakes Region.

"XPV is located in an internationally recognized water cluster that is home to a substantial percentage of the world's water innovation companies, the vast majority of which have a track record of entrepreneurial success in the sector," added Mr. Poloz. "Canada is a dynamic environment for water SMEs to flourish and build strong platforms to expand globally, and this export-oriented growth is what's most appealing to EDC."

The Fund will invest in water technology companies seeking to take advantage of global water trends affecting municipal, industrial, agricultural, and commercial water users. XPV will focus on high growth companies and platform investments within their current areas of focus to include demand reduction, wastewater to product, wastewater re-use, infrastructure renewal, and desalination.

"EDC will also enhance our investment in XPV's Water Fund by making available to the fund companies our global trade expertise, facilitating meetings through our international relationships with major buyers, and our suite of financing and insurance products," Mr. Poloz said.

"EDC's export services and their global network of funds will enable our portfolio companies to better access important international markets, something that will be crucial to the success of our companies," Mr. Henderson said.

EDC is Canada's export credit agency, offering innovative commercial solutions to help Canadian exporters and investors expand their international business. EDC's knowledge and partnerships are used by more than 8,300 Canadian companies and their global customers in up to 200 markets worldwide each year. EDC is financially self-sustaining, a recognized leader in financial reporting and economic analysis, and has been recognized as one of Canada's Top 100 Employers for nine consecutive years.

For further information: Media contacts: Phil Taylor, Export Development Canada, Tel: [phone], Blackberry: [email protected]