Key Takeaways
- • Kensington Capital Partners acquired the venture capital investment business of Ottawa-based ONE9, led by founder and Managing Partner Glenn Cowan, with all future ONE9 investment activity, including new funds and direct investments, to be completed exclusively within Kensington.
- • Kensington is acquiring a minority stake in ONE9 Capability Labs, with an option to acquire the remaining interest upon completion of certain milestones; legacy ONE9 investments are excluded and remain with the vendors.
- • The deal positions Kensington as a market leader in National Security technologies, including cybersecurity, dual-use and defense-first technologies, with a stated focus on AI, robotics and autonomous systems, space technologies and cybersecurity.
- • Kensington manages over $2.6 billion in private equity, venture capital and other alternative assets, and is majority-owned by AGF Capital Partners, a subsidiary of AGF Management Limited.
Summary
Kensington Capital Partners Limited, a Toronto-based independent Canadian alternative investor established in 1996, announced the acquisition of the venture capital investment business of ONE9, the Ottawa-based team led by founder and Managing Partner Glenn Cowan, according to a Business Wire release. Upon completion, all ONE9 future investment activity, including new funds and new direct investments, will be conducted exclusively within Kensington. The company said the move establishes it as a market leader in investments in National Security technologies, including cybersecurity, as well as dual-use and defense-first technologies.
Under the terms described, Kensington is acquiring a minority stake in ONE9 Capability Labs, which provides value-added services to portfolio companies and other National Security clients, with an option to acquire the remaining interest upon completion of certain milestones. ONE9's interests in legacy investments completed by its team are excluded from the transaction and will remain with the vendors. The release did not disclose a purchase price.
Cowan, a former Squadron Commander in Canada's Joint Task Force 2 (JTF2), launched ONE9's venture capital business drawing on his special operations, military and intelligence background and deal flow from his network. The firm focuses on defense, intelligence and National Security investments, positioning itself between private capital markets and military technologies with substantial civilian applications.
The two firms have collaborated over the past five years on several investments, including Tomahawk Robotics, a drone control technology sold to AeroVironment, Inc. (NASDAQ: AVAV) in 2023, and Strider Technologies, an AI application that converts open-source data into strategic intelligence. Kensington was also lead investor in the ONE9 Special Mission Fund. Rick Nathan, Senior Managing Director at Kensington, said the collaboration increased Kensington's focus on the National Security sector and that the addition of Cowan and other ONE9 members will support an entirely new investment platform for Kensington in the sector. Kensington plans to use the ONE9 brand and continue its hybrid strategy of direct investments in emerging technology companies and venture capital funds focused on the sector. Kensington cited artificial intelligence, robotics and autonomous systems, space technologies and cybersecurity as areas of opportunity. Kensington, majority-owned by AGF Capital Partners, manages over $2.6 billion in assets.
Under the terms described, Kensington is acquiring a minority stake in ONE9 Capability Labs, which provides value-added services to portfolio companies and other National Security clients, with an option to acquire the remaining interest upon completion of certain milestones. ONE9's interests in legacy investments completed by its team are excluded from the transaction and will remain with the vendors. The release did not disclose a purchase price.
Cowan, a former Squadron Commander in Canada's Joint Task Force 2 (JTF2), launched ONE9's venture capital business drawing on his special operations, military and intelligence background and deal flow from his network. The firm focuses on defense, intelligence and National Security investments, positioning itself between private capital markets and military technologies with substantial civilian applications.
The two firms have collaborated over the past five years on several investments, including Tomahawk Robotics, a drone control technology sold to AeroVironment, Inc. (NASDAQ: AVAV) in 2023, and Strider Technologies, an AI application that converts open-source data into strategic intelligence. Kensington was also lead investor in the ONE9 Special Mission Fund. Rick Nathan, Senior Managing Director at Kensington, said the collaboration increased Kensington's focus on the National Security sector and that the addition of Cowan and other ONE9 members will support an entirely new investment platform for Kensington in the sector. Kensington plans to use the ONE9 brand and continue its hybrid strategy of direct investments in emerging technology companies and venture capital funds focused on the sector. Kensington cited artificial intelligence, robotics and autonomous systems, space technologies and cybersecurity as areas of opportunity. Kensington, majority-owned by AGF Capital Partners, manages over $2.6 billion in assets.
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