The Ontario government announced today (or re-announced, since this was part of the March 2006 budget) that it is creating a new $165 million Ontario Venture Capital Fund. OMERS, RBC Capital, BDC, and Manulife Financial are listed as partner investors, with the government providing $90 million.

Included in the government's news release is a statement from a Manulife VP that "the supply of venture capital in Ontario is less than optimal"—which is 180 degrees removed from what the government said two years ago when it announced it was putting an end to the LSIF tax credit.

The manager of the fund has not yet been announced.