The Financial Post reports in its Friday, Aug. 4, edition that Brookfield Asset Management and Sequoia Heritage, a $16-billion (U.S.) fund that manages the wealth of Silicon Valley, are creating an investment vehicle to capitalize on plunging valuations of venture capital-backed companies. A Financial Times dispatch to the Post reports that two unnamed sources say the firms are investing $250-million (U.S.) each to found a new company called Pinegrove Capital Partners led by Brian Laibow. Until recently, Mr. Laibow was co-head of the North American operations of Oaktree Capital Management's flagship credit fund. Brookfield and Sequoia Heritage will each own a 50-per-cent interest in the investment company, which is also trying to attract outside capital from large institutional investors. The firm hopes to raise more than $2-billion (U.S.) for its first fund, which will invest in privately held companies that have seen their valuations tumble amid a repricing of venture-backed groups. The new vehicle will take advantage of a financing crunch for start-ups and their venture capital owners, who have struggled to exit their investments amid a dramatic slowdown in initial public offerings.