New fund aims to propel startups into global grocery retail market
K&L Gates has provided legal counsel for the launch of the W23 Global Fund, LP, a new venture capital fund backed by major grocery retailers.
The fund has a capital commitment of AU$190 million, with backing from Woolworths Group (Australia and New Zealand), Tesco (UK, Ireland and Europe), Empire Company Limited/Sobeys Inc. (Canada), Shoprite Group (Africa), and Ahold Delhaize (US, Europe, and Indonesia).
According a news release announcing the establishment of the fund, each retailer holds an equal stake in W23 Global and will collectively form an investment committee led by their CEOs.
The fund will be deployed over the next five years, the news release added, with the goal of investing in start-ups and scaleups to pave their way to rapid global expansion.
Acting as fund counsel, K&L Gates tapped its asset management and investment funds (AMIF) and emerging growth/venture capital teams to assist with issues such as the negotiation of fund documents and addressing financial regulatory, tax, and employment law considerations.
The advising team was spearheaded by AMIF partners Daniel Greenaway in London and Kane Barnett in Sydney, along with Sydney-based corporate partner Daniel Atkin. They also received support AMIF lawyers Laura Price in London and Bernard Sia in Sydney, as well as London-based AMIF partner Philip Morgan and tax partner Giles Bavister and Sydney-based employment partner Stephen Hardy and lawyer Jocelyn Leung.
Greenway and Barnett shared their satisfaction with the fund’s establishment and said it was a privilege to assist with the transaction.
“This transaction further demonstrates our strength in establishing private funds, particularly in venture capital, and the degree of collaboration between our offices and practice groups,” they said in a joint statement.
Shelley Zeaiter, chief operating officer for W23 Global, also remarked on work done by the K&L Gates team.
“W23 Global is a potentially game-changing international VC fund with a powerful proposition for both our investors and portfolio companies,” said Zeaiter. “The team at K&L Gates across the globe operated seamlessly and showed their expertise in helping to bring W23 Global to fruition in a tight timeframe.”
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