by Kim Hanson
The Financial Post, Wednesday, January 12th, 2000.

J.L. Albright Venture Partners Inc., one of the country's most active Internet backers, is rolling out a new $100-million e-commerce fund, falling in line with a recent flurry of activity driving the online startup market.

If successful, it will mark the third and largest Internet fund launched by the Toronto-based venture capital firm since it was established in 1996 under the wing of brokerage Griffiths McBurney & Partners Inc. The investment will place it among Canada's 10 largest Internet funds. "We began marketing the fund yesterday," said John Albright, head of the firm. "We don't know who the investors are, but we have already set up about 35 meetings with institutions in Canada."

The new fund, J.L. Albright III Venture Fund LP, will make available up to $150-million in equity investments for Internet, e-commerce, networking and software companies. Target investment size will be between $15-million and $20-million. The firm's principals include high-tech entrepreneurs Gary Rubinoff, Osama Arafat and Stuart Lombard, who will invest $2-million of personal capital.

Montreal-based Sofinov Inc., the high-tech investment arm of the Caisse de depot et placement du Quebec, and the Ontario Municipal Employees Retirement Board are said to be considering taking a stake. "Sofinov will probably be a large investor, as they were in the last fund," Mr. Albright said. Sofinov became one of J.L. Albright's significant partners after investing $30-million in the firm's second $60-million e-commerce fund. Jane Courtemanche, spokeswoman for OMERS, would not comment on specific investments, but said "in the last year and a half it's really been our policy to build up our private placement practice." Of the $1-billion OMERS has reserved for private placements, about 80% is in direct investment and 20% in funds. "Within the 3% of the fund that's in private placements, the priority has been to pursue private funds more effectively," she said. OMERS is the country's fourth largest pension fund with more than $35-billion in assets.

In the past six months, leading venture capitalists, including XDL Capital Corp. of Toronto, Mosaic Ventures Partners, Jefferson Partners Capital Ltd. and McLean Watson Capital have raised similar funds.

Since 1996, J.L. Albright has raised $300-million in 10 Internet startups, including Indian Motorcycle Co. and Grocery Gateway Inc.