BB Biotech closes third venture fund on EUR67.5m

03 August 2009

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Fund

BB Biotech Ventures has reached a final close for BB Biotech Ventures III LP at EUR67.5m, or $100m, similar to its predecessor fund, which closed on $123m. The Guernsey-based fund has a lifespan of 7+3 years and is ultimately controlled by Bellevue Asset Management Group, which has operations in Curacao, Boston in the US, Kusnacht/Zurich in Switzerland, and Guernsey. The minimum ticket size was EUR1m for individuals and EUR5m for institutions; the GP contributed around 10% of the capital. Terms and conditions were described as industry standard.

The GP began raising funds without a placement agent in the second quarter of 2008, and was advised by Carey Olson.

Investors

The capital came from pension funds, institutional asset managers, high-net-worth individuals and private investors. Geographically, about two thirds of the funds were raised from Swiss investors. Three quarters of the investors were institutions.

Investments

BB Biotech Ventures III will invest globally in emerging healthcare companies and will primarily focus on product-driven, clinical-stage drug development and medical device businesses. It has already closed its first investments with Lumavita and Vaximm (both in Basle, Switzerland) as well as US-based Aerovance and Palyon. The fund will invest in 10-12 companies in total. Having made four investments in the first 12 months, the GP expects to invest in around three companies per year, funding each with about EUR5m.

The fund will also consider cash-flow-positive businesses requiring growth capital, or earlier-stage technology platform companies. While the fund has no fixed allocations, the GP expects to invest about three quarters of the funds into later-stage companies and one quarter into early-stage or growth companies. The fund can act as lead- and co-investor, and expects to exit companies via strategic sale or IPO.

People

The fund is advised by Klaus Breiner, Jurg Eckhardt and Martin Munchbach. The same team managed BB Biotech Ventures II, and has completed more than 35 investments in a number of companies, which included Actelion, Axovan, Cadence, Chemocentryx, Glycart, Intercell and Optimer. Current assets under management are approximately $220m.

Name: BB Biotech Ventures III

Closed on: EUR67.5m (Jun-09)

Focus: Venture, growth, healthcare

Contact: Dr Juerg Eckhardt

Address: Bellevue Asset Management AG

Seestrasse 16

Postfach

CH-8700 Kusnacht/Zurich

Switzerland

Tel: +41 44 267 67 19

Fax: +41 44 267 67 01

Advisers: Carey Olson (Legal).