Bud will introduce a proprietary ‘lifecycle investment approach’ that will serve as context for the growing number of situations where a successor GP is the preferred option. Participants will be introduced to the salient considerations and options available in these situations. Participants will also be introduced to a proprietary decision tree designed to facilitate any transition while reflecting the legal, operational and other perspectives.

“I am very pleased to have been chosen to present at such a noteworthy conference” stated Bud. “We are always pleased when our success at creating value pays off with this kind of recognition. To date we have experience as ‘successor GP’ in more than 15 situations and know it is important for limited partners to have another option. This is what we provide” concluded Bud.

Attendees of the session will gain the knowledge to be able to categorize underperforming funds, list the situations where active intervention is appropriate, determine the appropriate solution from the three options available, and apply a multiple step decision tree to facilitate the process
This recognition of this unique service is the latest in a series; including recent articles on KPM in the Financial Post and Dow Jones publications.

About the Kirchner Portfolio Management
Kirchner Portfolio Management (KPM) is the successor fund management division of Kirchner Investment Management Corporation. Kirchner Portfolio Management actively manages capital as a Corporate General Partner of venture capital and private equity investment funds on behalf of their limited partners. Our services include replacement GP or supplemental GP, management of remnant funds, managing funds after their investment phase to improve fund performance and liquidity, management of funds with inherent issues and management of distributed private securities.

For inquiries, please contact:
W.B. (Bud) Kirchner
Co-managing Partner
Kirchner Portfolio Management
205.313.0784
wbkirchner@kirchnergroup.com

1 August 2011 – Founder departures in private equity are hardly new and can be traced back to the days of Kohlberg Kravis Roberts & Co. But with a wave of funds approaching the end of their investment periods and the potentially depressed value of some portfolios in the wake of the downturn, the economics of staying on as a founder may not be as compelling today as they had once been.

In recent years, for example, Bruckmann Rosser Sherrill & Co., Code Hennessy & Simmons, Veronis Suhler Stevenson and ICV Partners have all witnessed the departure of their respective co-founders, some of which went on to form new firms.

By most counts, the economics that departing general partners receive – while always heavily negotiated – has come down from what it was 10 years ago. One lawyer specializing in succession planning said that he was no longer doing the “sweetheart deals” the industry used to see for departing founders, where they would continue to receive management fees for a period of time, on top of an extensive cash settlement in the $5 million plus range.

These days, some firms have a penalty vesting provision, where founders lose all or some portion of their existing position in the carry, according to John Ayer, partner at Ropes & Gray LLP. Their forfeited carry will be used to pay whoever takes over his or her role. Sometimes, if the split is amicable and toward the end of the fund, the departing founder typically gets fully vested or nearly fully vested, although only 8.5% of respondents to a 2010 survey conducted by Dow Jones & Co. and Glocap Search LLC said that retirement triggered vesting to accelerate to 100%. But all packages are negotiated and come in myriad forms.

In that same survey, 83.9% of retired partners from buyout and venture capital funds share carried interest from active funds raised prior to retirement. Only 8% share carry from active funds raised after retirement. Even some provisions like a non-compete have become more common, says another lawyer. “The industry never used to have it. Now, I raise it with every new group that I work with as an option,” he said.

Bud Kirchner, who runs merchant bank Kirchner Private Capital Group, devotes part of his practice to GP succession situations, where his firm will help structure a transition and essentially stand in for the departing GP to manage their portfolio companies. Business has been gaining momentum, he says – for several years it was venture capital-focused, but today the buyout side has caught up.

“We have a tremendous wave of funds coming up to the end of their fund life, and that crystallizes these issues: fees fall precipitously, the value of the carry is put into question, and you’re not sure if you’re up for raising another fund,” Kirchner said.

Despite the tightening of fund terms, the consensus seems to be that the current transition processes GPs go through have been, on the whole, fairly smooth. “Our industry is maturing; it’s becoming more institutional, and you have fewer of the blowups that happened in the past,” said one co-founder of a buyout firm that went through a rockier transition period when a founder left. “I’m actually surprised at how natural the evolution has been at many firms – it in general has been done in a thoughtful and organized fashion.”

His firm has been careful about the dispersion of carry – co-founding partners already know what their carry will be in the next fund with an agreement upfront rather than negotiation before a fund-raising period. It’s a testament to the more “mapped out” process GPs go though these days when it comes to succession issues, he said. Whether or not the industry will indeed see a wave of founder retirements remains to be determined.

“It’s a bit of a George Washington problem,” said Ayer. “You want to be fostering a new generation of partners who can continue to successfully run the firm. On the other hand, founders are incredibly valuable. The balance is keeping these highly talented guys for the next generation, but making the transition in a way that’s respectful of what the founders have created.”

Written By: Beina Xu, Dow Jones Reporter

Calgary, Alberta 22 October 2010 – Investment in Ag-Tech was revealed as the “next big thing” for Canada’s economic future, as innovators and investors came together at Agriculture 2.0, hosted for the first time on Canadian soil on Oct. 19.

“It is very gratifying to see the enthusiasm for a conference focused on ag and food technology venture capital. Having invested over 100M in companies that have focused on converting or optimizing biomass into food, fuel or advanced materials since 2002, we are pleased to see this space achieve recognition as a highly investable sector poised for substantive growth”, said Aki Georgacacos, senior partner at Avrio Ventures.

Co-hosted by Avrio Ventures of Calgary and NewSeed Advisors of New York, the conference provided a surprising glimpse into the future of modern agriculture. While most think of traditional farming in terms of crops and livestock, these new companies are redefining the scope of agriculture as it converges with medicine and health care, energy sectors and environmental technologies.

The venture fair participants at Ag 2.0 showcased some of the best that Canada has to offer in areas as diverse as nanotechnology, plant-based cancer drugs, systems that can identify and treat livestock without human intervention, repurposing wastes into value-added products, and biomass conversions into fuel.

Participants revealed different approaches to the theme of sustainability, but most agreed that the increase in population growth, coupled with the westernization of food preferences in the developing world and ever-declining resources have forced companies to examine how to “do more with less.”

Canada, as a leader in agricultural technologies, will influence the global direction of food production using sustainable practices, as ag-tech is poised to become the main driver of our economy.

About Avrio Ventures:
Avrio Ventures is a venture capital firm that supports the development of Canadian commercialization and growth stage industrial bioproducts, nutraceutical ingredients and food technology companies into world-class organizations. http://www.avrioventures.com

About NewSeed Advisors
NewSeed™ Advisors identifies, nurtures and invests in companies that make agriculture more sustainable. Sustainable agriculture has attractive economics, marketable innovations and talented professionals, but it needs mainstream support, sophisticated financial execution, and access to capital. NewSeed™ Advisors is committed to growing companies that improve food quality and take better care of the earth. http://www.newseedadvisors.com

Toronto, Ontario 7 September 2010 – Let’s start with the good news. The long tail of the economic crisis is finally working its way through the private-equity sector. It may have taken longer for the shock waves of the meltdown to make their way to this end of the economy. But they hit hard, nonetheless. Now, finally, corners are being turned. Globally, private equity players have tapped investors for more money in the second quarter of this year than at any time since the start of the financial crisis. Even Canada’s beleaguered venture-capital sector — the hardest hit in the world — is finally seeing some lift as this year progresses.

But despite the recent cause for good cheer, private-equity players — the leveraged-buyout firms, the venture capitalists, the distressed-debt funds — have emerged from the financial crisis and the recession that followed with deep battle scars. The reasons are all to clear. In the years leading up to the financial meltdown, private-equity firms ruled the investment landscape, luring investors — typically pension funds, sovereign-wealth funds and wealthy individuals — with the promise of king-size returns on deals that often ran into the billions of dollars.

The trend in Canada reached its zenith in 2007 — when private-equity firms raised $370 billion dollars — and then over-reached with the failed $52-billion leveraged buyout of BCE Inc. by a consortium that included the Ontario Teachers’ Pension Plan along with U.S. private equity firms Providence Equity Partners Inc. and Dearborn Partners LLC. By the time that bid failed in December 2008, the party was over. The market crash was in full swing and private-equity firms were left with suddenly devalued assets on their books that they could not monetize to would deliver promised returns to their institutional investors. The result? Anger and frustration among backers, who first started to scale back their flow of investment dollars and then put pressure on their private-equity partners to improve their bottom lines.

The detente that followed has since warmed and relations between investors and private-equity firms are normalizing. But more than a few high fliers have had their wings clipped. Edgestone Capital Partners, a prominent Toronto-based private-equity firm, has seen change in its executive line-up. Winnipeg-based Richardson Capital no longer runs private-equity money for third-party investors and now invests only the money it holds in house. Venture West, once a dominant venture-capital firm with offices across the country, has essentially closed its doors.

More significantly, the landscape of the entire private-equity industry has shifted. Traditional investors are demanding more transparency from their private-equity partners and greater roles in the management of investments. Others, notably smaller institutional investors such as OP Trust, which manages the pension obligations of the Ontario Public Sector Employees Union, are starting to make their own direct investments, diminishing the potential capital available to the private-equity industry.

None of this is to say the era of private equity is under threat. Indeed, a recent report by London-based Coller Capital says that investors plan to speed up their commitments to private-equity funds in the next 18 months. But one thing is certain: With the boom years behind them, private-equity investors have become more selective, and the entire industry, going forward, is operating on a different dynamic.

If the increasing willingness of institutional investors to make direct investment points to one overarching theme, it’s that they may have lost a degree of confidence in private-equity funds as an investment channel, especially if they are expected to pay fees to participate in deals. And that’s not an unreasonable position in light of the circumstances, says Sebastien Burdel, a principal with Coller Capital. “What you saw develop in the boom years to some degree was a dilution of the quality of the private-equity industry as a whole,” he says. “It was driven by a lot of newcomers who arguably should not been able to raise capital and should not have been doing deals.”

The inevitable outcome of that population boom — as is the case with any such boom — is an eventual thinning of the herd. Burdel predicts the pool of funds will shrink over the next year or two. But is that a good thing? Industry reaction is mixed. On the one hand, Burdel believes a rebalancing is a healthy sign of a maturing market. Others worry that industry veterans might just walk away from their funds, leaving younger, less-experienced partners to pick up the pieces. That fear may be overstated, but this much is certain: The future leaders of private equity will be the fittest, those who avoided quick, slick, financial turnarounds, and focused on bringing real value to the companies they purchased. There will be fewer of them overall, but those that remain will have a laser focus on operations. Financial wizardry will be replaced by players with deep knowledge of the industry sectors who have a long-term investment horizon of five years to eight years, as opposed to the three-to four-year turnarounds done during the height of the bubble. Secrecy will be less tolerated. The remaining players will have to be more transparent, take smaller fees and be willing to cut investors into some of their deals.

But with change comes opportunity. A number of smaller companies are muscling up with fresh approaches to private equity. With less capital available from traditional players, they are taking on larger roles in the industry.

Among them is Toronto-based Kirchner Private Capital Group. A gun-for-hire firm, Kirchner originally built its brand as a turnaround specialist that larger private-equity groups would bring in to fix and sell broken companies within their holdings.

Today, with more funds under pressure, Kirchner has found a new line of work — massaging under-performing portfolios. Instead of fixing individual companies, Kirchner conducts an entire analysis of a private-equity company’s investment portfolio on behalf of the investors, and uses its experience in turnarounds to recommend which assets should be kept and which should be let go, with the eventual goal being to wind down the entire portfolio.

The economic crisis “exposed the weakness in portfolios,” says Les Lyall, a turnaround specialist who joined Kirchner during a recent, widespread recruitment drive. “The challenges have become more present and visible. In the past, [investors] had two options: do nothing or sell the portfolio to a secondary fund at a significant discount… We represent something in the middle, to continue working with the portfolio and maximizing the value.”

Meanwhile, in the struggling venture-capital realm, another Toronto-based firm, MMV Financial, has been gaining traction in the area of “venture debt” financing. Yet demand for this type of financing — essentially, bridge lending to smaller that firms can’t traditional bank financing — is growing. “As equity pools shrank [after the economic crisis], there’s been a squeeze on capital in the market,” says Ron Patterson, who co-founded MMV in the late 1990s with Minhas Mohamed, and now serves as the company’s executive vice-president. “Whenever VCs demand tougher terms, our loan option looks more attractive.”

The upside of venture debt is that it allows firms growing out of the startup phase to access funding without having to turn to venture-capital firms, which would take ownership stakes that dilute the equity in the company. (MMV, which specializes in tech firms, actually does demand warrants that can be converted to equity from the companies it lends to, but the stakes only add up to 1% or 2%.) Still, venture debt is not the easiest money to accept. Making loan payments on a monthly basis can be difficult for young firms, and MMVs interest charges of 12.5% to 13.5% — typical for this category of lending — are not cheap.

David Nyland, president and chief executive of Toronto-based BluePrint Software, an MMV client, warns that this form of financing is not for everyone. “It takes a lot of discipline to stay current and pay the debt,” he says. “Those who can’t continue to make payments go into default.”

That said, MMV’s track record for selecting companies for loans is strong. In the decade or so since its launch, the firm has had to take over and resell at least seven startups to recoup its losses. But MMV puts its overall losses at only US$5 million over the years — not bad considering that it has handed US$500-million worth of loans to more than 175 firms.

That track record hasn’t gone unnoticed. MMV has recently grown its capital base to US$200 million, thanks to a capital infusion from Laurentian Bank, HSBC Bank Canada, and ROI Capital and is now lending US$80 million to US$100 million each year to some 30 companies. It is now also doing the majority of deals in the U.S. and boasts five offices across North America. “Ours is a good example of how Canadian companies need to be part of the North American platform,” says MMV co-founder Mohamed.

True enough. And there’s no doubt more opportunity for new or growth-oriented smaller players to take larger roles in the industry. After all, the crisis did not kill the private-equity model; it brought the players back down to earth. The industry may be less sexy and secretive than it once was but the remaining players — both old and new — will be stronger. In the process, a new niche of firms managing distress portfolios and debt have emerged. And a new era has begun.

Karen Mazurkewich, Financial Post Magazine

Pour lire cet article en français:http://www.lesaffaires.com/archives/generale/-les-entrepreneurs-doivent-foncer-/512251 .

Quebec small to medium-size businesses have emerged from the crisis with healthy balance sheets and streamlined cost structures. The time has come for them to put this advantage to use and acquire technologies or other businesses, according to Warren Blair Kirchner, President of Kirchner Private Capital Group, an investment firm that specializes in financing and transactions for small to medium-size businesses.

“Lenders, investors and potential acquirers have regained an appetite for small to medium-size businesses with tangible plans for growth that are already in the implementation stage”, says this deal maker originally from New York.

Small to medium-size businesses will not succeed in drawing the attention of potential acquirers or getting venture capital firms to loosen their purse strings by turning inwards. Proactive measures are required, says Mr. Kirchner. “They’re not interested in waiting three years for a small to medium-size business to revive its R & D activities or hire sellers to bring its revenues up to speed”.

Over the past month, for instance, water treatment specialists GLV (TSX, GLV.A, $9.06) and Stella-Jones, a producer of railway ties and timbers (TSX, SJ, $26.95), both completed private placements with institutional investors for $40 million and $80 million, respectively, in order to finance recent acquisitions.

“This stock market dynamic can work on the closely-held corporations market,” asserts the 62 year old financier. He predicts a new wave of mergers and acquisitions in the wake of the paralysis brought on by the financial crisis.

Large corporations have liquid assets at hand and are actively looking for a competitive edge, whether it be the latest technology or a business doing well in its niche.

A third of its workforce soon in Montreal

The Kirchner Group, with its head office in Alabama, is celebrating 25 years in Canada. The firm wants to take advantage of the potential windfall of transactions in Quebec.

The firm’s office, located in downtown Montreal, will be home to between 6 and 10 professionals before the year is out. This is a third of Kirchner’s total workforce, made up of 28 professionals. In fact, Jean-Sébastien Lamoureux, formerly an executive at Investissement Québec, joined Kirchner a few days ago as a managing director.

“In a way, we are a virtual business. Our professionals go where business takes us,” says Mr. Kirchner, who spends one or two weeks in Montreal every month.

By Dominique Beauchamp
dominique.beauchamp@transcontinental.ca

IFCMontréal, a non-profit organization, was established in 1986. The creation of IFCMontréal was an initiative by the Ministère des Finances du Québec in collaboration with the Montréal Exchange and the City of Montréal. The mission of IFCMontréal is to attract foreign direct investments from the Financial Services Industry, to increase the volume of international financial operations within Montréal, and to develop expertise in the field of international finance.

“We are very pleased to have been awarded this designation,” said W. B. (Bud) Kirchner, CEO and founder of KPCG. “Our company has been present for many years in Montréal and we are excited to qualify for the IFC designation.”

“We look forward to continue building strong relationships with the financial community of Montréal” commented Les Lyall Managing Partner of KIMC. “KIMC is privileged to have been granted such a noteworthy designation from the Government of Quebec.”

About Kirchner Private Capital Group (www.kirchnergroup.com)
The Kirchner Private Capital Group (KPCG) acts as partners, principals, agents and advisors to private companies, venture capital and private equity firms, and institutional investors. Through a multi-faceted, customized approach, we match our operational, transactional and investment skills to every investment management partnership, transition management engagement, and investment banking mandate. Our depth of experience, validated by a 25-year track record, enables us to assist both clients and partners achieve their objectives.

About Kirchner Investment Management Corporation (www.kirchnerimc.com)
Kirchner Investment Management Corporation (KIMC) actively manages capital as a Corporate General Partner of venture capital and private equity investment funds.

We partner with institutional investors in existing funds to realize their investment objectives, including managing funds after their investment phase to improve fund performance and liquidity. With our team of fund management, operations, and transaction specialists, Kirchner Investment Management dedicates resources in the management of the fund, either on an as-need or permanent basis.

Currently, through our Fund, Fund of Funds and Portfolio management services we manage Lothian Partners 27 SICAR, Foragen Technology Management and a Fund of Funds portfolio representing, in aggregate $150 million under management. In addition we are a General Partner of Avrio Ventures representing, $75 million under management. Also, KIMC is a past and current advisor to both general and limited partners of venture funds representing over $850 million of client private equity assets including over $500 million of underperforming investments.

For inquiries, please contact:
Les Lyall
Managing Partner
514.868.1079
llyall@kirchnergroup.com

Over the past year, Kirchner Private Capital Group has been picking up veterans in the VC world and putting them to work overhauling poorly performing funds and portfolio companies.

The company built its brand over the years turning around bad companies held in private-equity portfolios and then finding buyers. But with more private-equity funds underperforming, Kirchner is beefing up its expertise to take advantage of desperate general partners and investors who are not only looking for company turnaround expertise, but veteran private-equity players who can massage underperforming portfolios.

“We are the guys the limited partners might bring in to turn around the performance of the fund and replace the existing [general partners],” says Les Lyall, managing partner at Kirchner, who left Growth-Works Capital at the beginning of the year and joined Kirchner. Already, Mr. Lyall has taken over the management of two European funds, including one of Coller Capital’s funds, and is in the process of signing five new transactions — two of which are to reshape underperforming funds in Canada.

“Right now, limited partners only have two options, do nothing or sell the portfolio to a secondary fund at a significant discount…. We represent a third option,” Mr. Lyall said.

The private-equity world is seeing some radical changes. Not only are underperforming companies changing management, but fund partners themselves are playing an aggressive game of musical chairs. While some players simply switched funds or left to become entrepreneurs, such as Rick Segal, formerly with JLA Ventures, others are starting new initiatives.

Mark de Groot, co-founder of iNovia Capital in Montreal, is heading a new fund, Virage Capital, which is focused on sourcing capital from outside the country. Toronto-Dominion Bank is spinning out its TD Capital Private Equity Investors division and regrouping it as Northleaf Capital Partners. Northleaf will take with it the government-sponsored $205-million Ontario Venture Capital Fund.

The trend is so common that even Greg Smith, the reelected president of the Canadian Venture and Private Equity Association, left his post as chief executive of Macquarie Power & Infrastructure Income Fund earlier this year.

“These are difficult times and great opportunities,” said Bud Kirchner, president of Kirchner. He has hired six people this year, including Mr. Lyall, who was being groomed to take over GrowthWorks until he jumped, and Barry Gekiere, formerly with Ventures West. Private equity is built on complicated partnerships, and when hard times hit, these relationships get strained, Mr. Kirchner said. Not surprising, “it’s a time when people are rethinking what to do with their careers,” he added.

Mr. Kirchner said the shake-up will lead to a “smaller, tougher and better” private-equity sector. But others are worried that veterans in the industry might just walk away, leaving the younger, less-experienced partners to pick up the pieces.

Take Peter Seeligsohn, former managing partner at Ven-Growth Capital Partners Inc. He exited the fund world and is moving back into the operations side of the business, taking on the chief executive role of a composting-toilet firm.

No real surprises there. VenGrowth, an Ontario-based labour-sponsored fund, has not performed well, with only two of its funds making money over a five-year period. Even its best-performing fund over the long term was down 42.5% over the past year, prompting an exodus of staff, according to industry insiders. Vengrowth representatives did not return calls seeking comment.

Wirtten by kmazurkewich@nationalpost.com
© 2009 The National Post Company

Les has 25 years of operational, private equity, venture capital, and fund management experience. He has served on the boards of private and public companies, has held management operating roles and turnaround assignments, and has worked with companies through the IPO and strategic sale process.

Most recently, Les was COO of GrowthWorks Capital, a Canadian venture fund manager with $750 million of assets under management. While at GrowthWorks, he was previously Senior Vice President responsible for two Ontario based funds totaling $400 million under management. In this role, he also managed the acquisition and consolidation of six venture funds, resulting in a significant investment performance improvement.

“We are pleased to have Les join our steadily growing team of professionals,” said W. B. (Bud) Kirchner, CEO and founder of KPCG. “We have worked with Les for many years, and his combination of private equity and venture capital experience, together with hands-on operational expertise, makes him an ideal addition to our group. We are proud to be approaching our 25th year in this business and are excited to have someone of Les’ caliber and reputation join the team working in our North American market.”

“I am very excited to join KIMC and help expand the firm’s existing fund management business,” said Les Lyall. “The move to KIMC represents an opportunity to offer institutional investors a second option in managing their alternative asset fund investments and allows me to build on my experience improving the investment returns of underperforming funds.”

Les’ extensive background includes: CEO of a computer telephony company, including turnaround and subsequent IPO; CEO of a manufacturing company; serving on the boards of several private and public companies; and undertaking interim management roles and turnaround assignments. In addition, Les founded a consulting firm that specialized in small and medium-sized business turnarounds and repositionings.

Les has an MBA from Simon Fraser University. He has also served as President of the Retail Venture Funds Association.

About Kirchner Private Capital Group (KPCG)

The Kirchner Private Capital Group acts as partners, principals, agents and advisors to private companies, venture capital and private equity firms, and institutional investors. Through a multi-faceted, customized approach, we match our operational, transactional and investment skills to every investment management partnership, transition management engagement, and investment banking mandate. Our depth of experience, validated by a 25-year track record, enables us to assist both clients and partners achieve their objectives.

About Kirchner Investment Management Corporation (KIMC)

KIMC actively manages capital as a Corporate General Partner of venture capital and private equity investment funds.

We partner with institutional investors and fund managers in existing funds to realize their investment objectives, including managing funds after their investment phase to improve fund performance and liquidity. With our team of fund management, operations, and transaction specialists, Kirchner Investment Management dedicates resources in the management of the fund, either on an as-need or permanent basis.

Currently, KIMC is a General Partner in Avrio Ventures and Foragen Technology Management representing, in aggregate, $100 million under management. Also, KIMC is a past and current advisor to both general and limited partners of venture funds representing over $850 million of client private equity assets including over $500 million of underperforming investments.

For inquiries, please contact:

Les Lyall, Managing Partner: (778) 718-9492, or llyall@kirchnergroup.com

It’s been a tough year for private-equity firms to raise new funds, but Avrio Ventures, a Calgary-based venture capital firm, has bucked the trend and closed $75-million in a fund that targets — not junior oil companies — but nutraceutical and food technology firms.

(Above is an excerpt from an article published in the National Post on Monday June 9, 2008, written by Karen Mazurkewich)

Calgary, Alberta, 27 May, 2008 – Avrio Ventures (“Avrio”) is pleased to announce the second closing of Avrio Ventures Limited Partnership I in which additional commitments of $25 million have been secured. New investments have been received from a number of leading Canadian institutions and capital commitments to Avrio Ventures Limited Partnership I now total $75 million.

Avrio combines the experience and expertise of Canada’s two leading industrial life science focused venture capital groups – FCC Ventures and Kirchner Investment Management Corporation (“KIMC”). The fund is focused on advanced materials originating from agricultural or related technologies, capitalizing on the convergence of agricultural science and industrial technology.

“Canadian companies in this sector are poised for significant growth as overall market conditions for natural and organic foods, personal care products, natural health products, as well as biofuel technology provide compelling investment opportunities” says Gaetan Lussier, O.C., Chairman of the Avrio Board of Advisors.

Jennifer Brooy, Vice-President of Equity with Export Development Canada, said EDC’s involvement with Avrio Ventures “will help Canadian agricultural technology firms move higher up in the global value chain and help increase trade in a rapidly developing sector. There are strong global demand pressures driving innovation in agricultural technology and Canada is at the forefront of this trend with a strong research base and a host of small companies at the leading edge in this field.” Brooy said.

To date Avrio has invested in three companies:

Siamons International, Inc. manufactures and markets Concrobium Mold Control, a breakthrough, 100% natural antimicrobial product that eliminates and prevents mold. www.concrobium.com

Origin BioMed Inc. is an innovative biotechnology company currently expanding the markets for its line of topical treatment for nerve related pain. www.originbiomed.com

S.J. Irvine manufactures and distributes a wide range of gluten-free, specialty processed foods addressing the growing trend of ‘ingredient wellness’ emerging in the industry.

Collectively, the partners of Avrio manage $175 million of industrial life science sector investments. “KIMC has been part of this sector for some time now,’ said W.B. “Bud” Kirchner, Founder of KIMC. “Avrio is a great opportunity for us to bring KIMC’s value proposition together with that of FCC Ventures to support entrepreneurial companies that make a difference in our everyday lives with products such as the fuel we need and the food we consume.”

Avrio Ventures is headquartered in Calgary, Alberta, with offices in Toronto, Ontario and Montreal, Quebec.

About Avrio Ventures

Avrio Ventures provides growth capital to companies focused on advanced materials originating from agricultural or related technologies. Founded in 2006 Avrio is dedicated to building world class Canadian industrial bioproducts, food technology and nutraceutical ingredient companies that solve tomorrow’s health, wellness and environmental challenges. For more information, please visit www.avrioventures.com

About Kirchner Investment Management Corporation

Kirchner Investment Management Corporation (“KIMC”) provides venture capital and private equity investment (outsourced) management and advisory services, as well as participates as a General Partner in funds through its proprietary capital management group. Through the collective experience of its team, which is composed of operators, fund managers and transaction specialists, the right mix of individuals are assembled to assist an investment fund or institutional investor achieve their investment objectives. KIMC is a member of the Kirchner Private Capital Group family. For more information please see our website at www.kirchnerimc.com.

For additional information, please contact:

Jim Taylor, Partner
Avrio Ventures
403-215-5490
jtaylor@avrioventures.com

Aki Georgacacos, Partner
Avrio Ventures
403-215-5489
ageorgacacos@avrioventures.com

W.B. “Bud” Kirchner, CEO
Kirchner Investment Management Corporation
403-215-5491