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It should be noted that the TVPI for the portfolio will be affected by the addition of new funds. Due to the nature of venture investing and accounting practices for these investments, Venture Capital funds are likely to show a loss during the first half of their life. These losses normally reverse as a fund matures and as unrealized and realized gains increase over time. Therefore, as AEC continues to add new funds
to our portfolio (we welcomed six this fiscal year), we are likely to see the delaying effects of new funds expressed in the portfolio’s total TVPI in the following few years. The financial return to the province on our initial investment will not fully be known until all our funds mature.
As of March 31, 2023, our portfolio has distributed $91.5 million back to AEC, versus $84.5 million as of March 2022 (an increase of $7 million).
During the year we closely monitored, supported, and reported on our existing investments in our portfolio, encouraging best practices in governance and transparency to maximize the probability of delivering Alberta benefits and financial returns.
2022 2023
23
