Albion to manage new £50m UCL fund

Katharina Semke
18 January 2016

Tweet
Facebook
LinkedIn
Google plus
Send to

Albion Ventures has been commissioned to manage the new ТЃ50m UCL Technology Fund by University College London.

The vehicle, which is the first investment fund by UCL, was created to commercialise the school's research output. Albion will manage and administer the fund in partnership with UCL's technology transfer company UCL Business (UCLB), with which it co-invested in the past.

Under the fund's limited partnership agreement, Albion is obliged to offer co-investment opportunities to the LPs and to alert them to any projects that the vehicle chooses not to invest in. The LPs will therefore have opportunities to make direct investments into additional UCLB spinouts. They are also entitled to appoint a representative to the fund's advisory board.

Albion and UCLB will share the management fees of 2.4% per annum of total commitments during the investment period and invested capital after the investment period. Carry will amount to 20% of the fund's realised profits once LPs have received distributions equal to 120% of their commitments.

The fund will have an investment period of five years and a term of 10 years with the possibility for a two-year extension.

Investors
Imperial Innovations, a British investor focused on scientific research, provided £24.75m. The European Investment Fund matched this commitment. Albion and UCLB provided the remainder.

Investments
The fund will invest exclusively in projects by UCL academics. It will be used for early-stage proof-of-concept funding, licensing opportunities and the formation of new spinout companies.

UCL Technology Fund will have a strong focus on the physical and life sciences sectors. The investment decisions will be made by an independent investment committee, led by Albion.

The vehicle's first investment is planned within the first three months and it aims to have completed its initial rounds within five years.

People
Albion Ventures – Patrick Reeve (managing partner).
Imperial Innovations – Russ Cummings (CEO).
European Investment Fund – Piyush Unalkat (head of technology transfer investments).