Next Phase Newsletter

A healthcare investment firm based in the Eastern US, which runs both a private equity fund and a hedge fund, is currently looking for new investment opportunities for their second private equity fund, which recently closed at $200 million. The firm has more than $500 million in assets, and has raised two private equity funds and one hedge fund in the past year. They have plans to invest in 3-5 new firms by the end of 2013, typically making equity investments ranging from $10-25 million.

The firm is currently most interested in firms in the biotech R&D services and medtech space. Within biotech R&D services, the firm is looking for contract research organizations (CRO’s) and contract manufacturing organizations (CMO’s). They have also recently started looking for firms within the medtech space, specifically those that are producing medical devices. The firm mainly invests in US-based companies, but has allocated to international firms in the past; they would consider European firms on a case-by-case basis.

The firm provides growth equity, expansion capital, and engages in buyout and recapitalization transactions. The firm only invests in established, cash-flow-positive companies. With that being said, the firm will not consider any companies in the medtech space that do not currently have a device on the market.

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A pre-seed and seed stage fund that was established when its state government allocated $7 million in order to promote life science within its borders has managed to grow their initial investment to $20 million. The firm is now seeking new investments in the life sciences space, and typically initially invests around $500,000, but has the ability to invest upwards of $1 million. The firm has an evergreen structure, and thus is always looking for new investment opportunities. With that being said, the firm has no strict timeframe to make an allocation, but would invest in a firm within the next 6-9 months if a compelling opportunity is identified.

This particular firm is interested in the biotech therapeutics and diagnostics space, as well as in medical technologies. Although the firm does invest in therapeutic companies, they are most interested in the diagnostics and medical device space currently. Additionally, they are interested in companies that are developing research tools.

The firm makes seed and seed stage investments, and therefore does not consider firms that have raised a significant amount of venture capital, or more research-oriented projects that are better suited for an NIH grant. Consequently, the firm will consider companies that have a prototype of their medical device, or diagnostics companies that are in the pre-clinical phase of development.

Tags: biotech, biotechnology, CMO, consulting, CRO, family offices, Fundraising, investor, Investors, issue, letter, life, Life Science, life science nation, medicine, nation, news, newsletter, pharma, Pharmaceutical, private equity, research & development, science, startup, venture capital

A venture capital fund that has relationships with nearly 50 university partnerships has around $100M in assets, and acts very opportunistically within the life science space. The firm also acquires participation rights for university spinout companies.

About 70% of the VC’s life sciences investments are in therapeutics, 30% of which are distributed between devices, diagnostics, and discovery platforms. Currently, the firm is most interested in therapeutics, and is avoiding med-tech opportunities due to an internal perspective of unpredictability of the FDA’s activities in the med-tech space.

Though they do not have a strict mandate in terms of subsector or indication, therapeutics for oncology, cardiovascular, anti-inflammatories, and ophthalmology drugs have historically done well, and are favored by, the investment team.

The VC does not have a specific timeline for allocation, and will make investments as opportunities arise. Typically, they will invest $500K – $1.5MM initially and reserve 1-3x initial invested capital for follow-on rounds, however the firm is comfortable investing broadly across stage, from seed to late stage, and will selectively invest $100K – $250K in angel rounds on an opportunistic basis. The firm prefers to be a co-investor alongside other firms or syndicates, and lays significant value on investing alongside notable “top-tier” firms.

Tags: biotech, biotechnology, CMO, consulting, CRO, family offices, Fundraising, investor, Investors, issue, letter, life, Life Science, life science nation, medicine, nation, news, newsletter, pharma, Pharmaceutical, private equity, research & development, science, startup, venture capital

A private equity group based in the Eastern US, which manages SBIC (small business investment company) funds, has around $200 million in total assets under management. They are currently deploying capital from their second fund, which closed in 2012. The group is interested in sourcing new firms in the life sciences space, typically making equity investments ranging from $1-10 million.

The most important criteria for potential investments for the PE group is the company’s structure. The group provides company owners capital to facilitate majority recapitalizations, majority management buyouts, as well as family successions. Accordingly, they would be especially interested in a firm where a manager is seeking to buyout the company’s owner, a business whose owner is looking to retire, or company owner who is looking for a strategic financial partner. The firm is thus most interested in management teams who are looking to retain or acquire a significant equity stake in their company.

The PE is seeking firms that have at least $1-10 million in EBITDA, and $10-100 million in revenue. The firm is most interested in the suppliers and engineering space. However, they are very opportunistic in terms of sector, and would consider companies operating within any subsector of the healthcare suppliers and engineering space.

Tags: biotech, biotechnology, CMO, consulting, CRO, family offices, Fundraising, investor, Investors, issue, letter, life, Life Science, life science nation, medicine, nation, news, newsletter, pharma, Pharmaceutical, private equity, research & development, science, startup, venture capital

A private equity group based in the Eastern US is currently deploying funds from the firm’s fifth fund, which closed at over $500 million. The firm is currently looking for new firms in the life sciences space, and will allocate to around 10 new firms in 2013. The firm provides growth capital to firms, and also executes buyout transactions. Typically, they invest in middle-market companies that have an enterprise value ranging from $10-100, but their preference is firms with values in the $20-80 million range.

The firm is most interested in biotech companies in the R&D services space, and is most interested in contract manufacturing organizations (CMOs), as well as contract research organizations (CROs). The PE is also seeking firms in the suppliers and engineering space and is looking for firms that are producing reagents.

Tags: biotech, biotechnology, CMO, consulting, CRO, family offices, Fundraising, investor, Investors, issue, letter, life, Life Science, life science nation, medicine, nation, news, newsletter, pharma, Pharmaceutical, private equity, research & development, science, startup, venture capital

The technology transfer office of a university based in Europe is currently looking for new investment opportunities in the life science space. They anticipate investing in around eight companies by the end of 2013, and typically allocate between $20,000 and $20 million per firm. Because institutional shareholders back the firm, they have an evergreen structure, and thus can deploy capital as soon as a compelling opportunity is identified.

The tech transfer office is currently most interested in firms in the biotech space, specifically investing in biotech therapeutic and diagnostic firms. They have no particular preference in terms of what indication the company’s product is targeting, and will invest in firms that have products which target orphan indications.

Investing in both pre-revenue companies and companies that have positive cash flow, the tech transfer office will consider firms with products in the preclinical phase of development all the way through firms that have a product on the market. The firm has no strict criteria in terms of revenue and EBITDA for cash flow-positive companies.

Tags: biotech, biotechnology, CMO, consulting, CRO, family offices, Fundraising, investor, Investors, issue, letter, life, Life Science, life science nation, medicine, nation, news, newsletter, pharma, Pharmaceutical, private equity, research & development, science, startup, venture capital

A non-profit based in the Western US with nearly $50 million in assets is interested in biotech firms developing therapeutics that target brain disorders. The firm typically allocates from the hundreds of thousands into the millions per firm, and is looking to allocate to one more firm in the life science’s space for their second fund. They are especially interested in technologies that are able to deliver therapeutics across the blood brain barrier, as well as the personalized medicine space. The firm prefers funds that are in between phase I and phase II of the clinical development process, but will consider products in preclinical, phase I, and phase II development.

Tags: biotech, biotechnology, CMO, consulting, CRO, family offices, Fundraising, investor, Investors, issue, letter, life, Life Science, life science nation, medicine, nation, news, newsletter, pharma, Pharmaceutical, private equity, research & development, science, startup, venture capital