On May 5, 2006, NexGen Financial Limited Partnership completed a private placement of limited partnership preferred units and debentures for gross proceeds of approximately $24 million. Following the closing of this financing, NexGen filed a final prospectus for a new family of mutual funds (the “NexGen Funds”). The NexGen Funds consist of a group of mutual funds for non-taxable investors and a group of tax managed funds. Unlike other mutual funds offered in Canada, the NexGen tax managed funds are designed to achieve a number of tax planning objectives, allowing investors to select the appropriate class of investment in order to maximize the after-tax value of their investment portfolio and its distributions. The NexGen Funds are based on an invention entitled “A Method and System for Distributing Mutual Fund Income”, for which NexGen has filed a Canadian patent application.
All matters relating to the NexGen Funds were handled internally by the NexGen team. With respect to the financing, NexGen was represented by Borden Ladner Gervais LLP, with a team that included Carol Derk, Dolores DiFelice, Kathryn Ash, Emma Miller and Carolyn Royce. Alfred Macchione of McCarthy Tétrault LLP provided advice to NexGen on patent and intellectual property matters in the context of the financing and the NexGen Funds.
Celia Rhea, Stephen Pincus, Francesca Guolo and Jennifer Sernaker of Goodmans LLP represented the NexGen investors.