The Toronto-based firm reached a deal to buy One9 Venture Partners for an undisclosed amount. Kensington—which invests in other VC funds as well as directly in startups—will oversee all of One9’s future investments. The firm will also take a minority stake in One9 Capability Labs, which provides advisory services to portfolio companies and other national security firms. (The Logic)

Talking point: One9, led by former soldier Glenn Cowan and Shopify co-founder Daniel Weinand, announced plans in 2022 to raise a $50-million fund to invest in national security, defence and intelligence startups. Kensington contributed $7 million to the fund, but it fell far short of its target, raising just $10 million. One9 has made investments outside the fund through special purpose vehicles, deploying $22 million in total capital, according to Kensington senior managing director Rick Nathan. Cowan, along with other members of the One9 team, will join Kensington as part of the deal. “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,” said Nathan.