Corporate Profile
Who We Are
E
stablished in 1994 Covington Capital
Corp. is one of Canada’s foremost
venture capital investment managers.
Covington invests in, and partners with
some of Canada’s leading entrepreneurs
to assist in the growth of a select number
of privately-held Canadian enterprises.
Our investment not only supports this
country’s exceptional entrepreneurial
talent but Canada’s overall economic
growth and development. Through our
retail fund offerings, Covington provides
Canadian investors with access to Canada’s
exclusive venture capital market.
OUR TEAM
Continuing to refine our investment team through added
depth and specialized industry experience, Covington now
has one of the most skilled and respected venture capital
investment teams in the country.
Supporting Covington’s in-house investment team is Genesys
Capital Partners – one of Canada’s highly experienced life
sciences investors.
Covington’s extensive network of strategic partners includes
industry leaders such as:
> Microsoft Canada;
> Hewlett Packard;
> Richard Ivey School Of Business;
> Leading Canadian Investment Management Firms
and Canadian enterprises.
Covington’s long-standing reputation as one of the
pre-eminent venture capital investors in the country makes
them a leading choice for Canadian entrepreneurs seeking
a venture investment partner to add value and help build
their venture into a future industry leader.
OUR INVESTMENT CRITERIA
Our singular focus is pure venture capital investing. We
concentrate primarily on equity and convertible-debt based
investments in enterprises that Covington believes are
entering a strong growth, or expansion phase of their
business life-cycle. Based on the industry’s historical returns,
equity structured investments provide for the strongest
return potential while convertible debt structures provide
down-side protection within a portfolio. The success of the
enterprise is directly reflected in the returns of an equity
structured investment and, therefore, unlike debt structured
instruments, does not put limits on the return potential of
the investment.
Covington only invests in opportunities that meet our
stringent criteria including:
> Highly-skilled, proven management teams that possess
a unique business proposition;
> Enterprises that operate within a growing, or critical,
market that we feel have a strong potential to become
market leaders;
> Focus is on later-stage enterprises operating within key
industry sectors such as traditional industries, financial
services, technology, aerospace and life sciences.
*Important information about the funds are contained in their prospectus. Please obtain a prospectus from your financial adviser or www.covingtonfunds.com
and read it carefully before investing. These investments may not be suitable for all investors. Some conditions apply. Commissions, trailing commissions,
management fees and expenses all may be associated with these investments. The funds are not guaranteed, values change frequently and past performance
may not be repeated. This communication is paid for in part by Covington Group of Funds. Availability of tax credits are subject to certain conditions and overall
limitations and are generally subject to recapture if redeemed within eight years. RRSP savings are not unique to Covington investment funds.
SKU CGOF1010 09/06
OUR INVESTMENT PHILOSOPHY
Guide to Product Offerings
`
Covington II Fund
Covington Strategic
Capital Fund
New Generation
Biotech Equity Fund
Investment Strategy
Most diversified fund offering
with a focus on later-stage
investments throughout a
wide range of industry sectors
including traditional industries,
technology, and life sciences.
Later-stage investments
throughout the technology
sector in companies with
global scalability and market
momentum.
Diversified, mature portfolio
through mid, and later-stage
investments in high-growth
life sciences companies.
Investment Criteria
Companies with a solid foundation for growth, proven products
or services filling a market
need, own market share, strong
management, and generating
earnings & revenues.
Companies whose growth
potential may be significantly
increased by proprietary partnerships with key strategic partners
such as Microsoft and HP.
Companies with defined development and commercialization
paths, proven management,
and business models focused
on delivering increased value in
the near future.
Investment Sectors
• Traditional Industries
• Health Sciences
• Technology
• Communications
• Financial Services
• Aerospace
• Communications
• Financial Services
• Enterprise Software
• Drug & Device Applications
• Clinical Products
• Cell Biology
• Health IT
Primary Investment
Structures
• Equity
• Convertible Debt
• Equity
• Convertible Debt
• Equity
• Convertible Debt
Investors Seeking
• Maximum sector
diversification.
• Most conservative,
consistent, long-term
growth potential.
• Exposure to technology sector
• Long-term growth potential.
• Exposure to biotechnology
sector.
• More aggressive long-term
growth potential.
• Enterprises providing leadingedge, life changing solutions.
Key Fund Attributes
• Mature portfolio.
• Most diversified venture
capital fund offering.
• Collaboration with global
leaders Microsoft, HP, among
others, mitigating risk and
supporting company growth.
• Built in sales and delivery
channels to investees.
• Managed by one of
Canada’s most experienced
biotechnology teams –
Genesys Capital Partners.
• Mature portfolio
Tax Credit
30%
(15% Provincial
+ 15% Federal)
30%
(15% Provincial
+ 15% Federal)
35%
(20% Provincial
+ 15% Federal)
Inception Date
November 1999
January 2004
March 2001
Fund Code
CIG912
6% Commission
+ 50 BPS Trailer Over 8 Years
Series I – CIG916
10% Commission Up Front
+ After 8 Years 50 BPS
Over 8 Years
Series II – CIG917
6% Commission
+ 50 BPS Trailer Over 8 Years
Series II – CIG901
10% Commission Up Front
+ After 8 Years 50 BPS Over
8 Years
Series III – CIG902
6% Commission
+ 50 BPS Trailer Over 8 Years