Kensington Acquires ONE9 Venture Capital Business

Rhea-AI Summary

Kensington Capital Partners has announced the acquisition of ONE9's venture capital investment business, establishing itself as a market leader in National Security technologies investments. The deal includes acquiring a minority stake in ONE9 Capability Labs with an option for complete ownership upon meeting certain milestones.

ONE9, founded by former JTF2 Squadron Commander Glenn Cowan, specializes in defense, intelligence, and National Security investments. The acquisition follows a successful five-year collaboration between both firms, including investments in Tomahawk Robotics (sold to AeroVironment - AVAV in 2023) and Strider Technologies.

Through this strategic move, Kensington will leverage ONE9's brand and expertise to expand its platform, focusing on both direct investments in emerging technology companies and venture capital funds in the National Security sector. The transaction excludes ONE9's legacy investments, which will remain with the vendors.

Positive

• Strategic acquisition establishes market leadership in growing National Security tech sector
• Expands investment capabilities in high-growth areas: AI, robotics, space tech, and cybersecurity
• Builds on proven partnership with successful exit (Tomahawk Robotics to AVAV)
• Adds specialized expertise and network in defense and intelligence sectors

Negative

• Requires additional capital deployment for full acquisition of ONE9 Capability Labs
• Legacy investments excluded from the deal, limiting immediate portfolio expansion

Kensington adds ONE9’s core expertise in National Security technologies to its growing venture capital business

TORONTO--(BUSINESS WIRE)-- Kensington Capital Partners Limited (Kensington) today announced the acquisition of the venture capital investment business of ONE9, the Ottawa-based team led by founder and Managing Partner Glenn Cowan. Upon completion of the transaction, all ONE9’s future investment activities, including new funds and new direct investments, will be completed exclusively within Kensington. This strategic move establishes Kensington as a market leader for investments in National Security technologies, including cybersecurity, as well as dual use and defense first technologies.

Kensington is acquiring a minority stake in ONE9 Capability Labs, the ONE9 company that provides value-added services to portfolio companies and other National Security clients, with the option to acquire the remaining interest in the business upon completion of certain milestones. ONE9’s interests in legacy investments previously completed by their team are not included in the transaction and will remain with the vendors.

Following his many years of military service as a Squadron Commander in Canada’s Joint Task Force 2 (JTF2), Cowan launched ONE9’s venture capital business leveraging his special operations experience, military and intelligence knowledge, and insights on unique deal flow through his deep connections. With its focus on defense, intelligence, and National Security investments, ONE9 bridges the gap between private capital markets and the world’s most innovative military technologies with substantial civilian uses.

Over the past five years, Kensington and ONE9 have collaborated on several investments, including Tomahawk Robotics, a drone control technology successfully sold in 2023 to AeroVironment, Inc. (NASDAQ: AVAV); and Strider Technologies, an AI application that transforms open-source data into strategic intelligence, among others. Kensington was also the lead investor in the ONE9 Special Mission Fund launched by the ONE9 team. Working together on these investments led to a strong and successful business partnership, culminating in this transaction.

Through its 29-year history investing in private equity and venture capital, Kensington has independently established its own track record investing in National Security technologies, where it sees many of the most compelling new opportunities emerging in today’s market, from artificial intelligence to robotics and autonomous systems, space technologies and cybersecurity. Now, with the addition of ONE9’s domain expertise, the combined team is well positioned to take a leadership role in this sector. Kensington plans to use the ONE9 brand name and expand the platform by continuing its hybrid strategy of investing directly into emerging technology companies as well as venture capital funds focused on this sector.

“In today’s world, we are seeing the growing importance of directing our investment and innovation efforts towards our collective National Security,” said Cowan. “This transaction positions us to lead the market in this sector.”

“Working alongside Glenn and his team for the past several years has led to a strong and successful collaboration, and increased our focus on the National Security sector,” said Rick Nathan, Senior Managing Director at Kensington. “We see an exciting opportunity to launch an entirely new investment platform for Kensington in this sector, which has been growing dramatically and has led to real successes in our portfolio. The addition of Glenn and other key members of ONE9 to Kensington’s investment team will enable us to capitalize on these trends and bring new opportunities for value creation for our investors.”

About Kensington Capital Partners

Kensington Capital Partners is a leading independent Canadian investor in alternative assets established in 1996. With offices in Toronto and Vancouver, the Kensington team currently manages over $2.6 billion in private equity, venture capital, and other alternative assets. Kensington is majority-owned by AGF Capital Partners, a subsidiary of AGF Management Limited (AGF). Founded in 1957, AGF has over $54 billion in assets under management and fee-earning assets and serves more than 815,000 investors. For more information, visit www.kcpl.ca.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250402014143/en/

Media:

Jodi Echakowitz

Boulevard Public Relations (for Kensington)

416-271-7250

jodi@boulevardpr.com

Source: Kensington Capital Partners Limited

FAQ

What are the key assets acquired in Kensington's acquisition of ONE9?

Kensington acquired ONE9's venture capital investment business and a minority stake in ONE9 Capability Labs, with an option to acquire the remaining interest upon meeting milestones. Legacy investments remain with ONE9.

How does the ONE9 acquisition strengthen Kensington's market position?

The acquisition establishes Kensington as a market leader in National Security technologies, including cybersecurity and defense technologies, while adding ONE9's core expertise and network.

What was ONE9 and Kensington's previous successful exit involving AVAV?

They jointly invested in Tomahawk Robotics, a drone control technology company, which was successfully sold to AeroVironment (AVAV) in 2023.

What investment strategy will Kensington pursue with the ONE9 brand?

Kensington plans to expand the ONE9 platform through a hybrid strategy of direct investments in emerging tech companies and venture capital funds focused on the National Security sector.