Category: Hot Mandates

Hot Life Science Investor Mandate 1: Private Investment Company is Flexible in Allocation Strategy

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A private investment company established by a single high net worth individual is looking to make direct investments in the therapeutics space. Based in the Eastern US, the firm manages an evergreen structure, allowing it to have a very large range for investment size, capital structure, and holding period. The firm has no set number of allocations that it plans to make over the next 6-9 months and will evaluate all relevant opportunities on a case by case basis.

The firm is currently looking for US based companies companies in the therapeutics space and is open to considering both Biologics and Small Molecules. Companies with assets in phase II or later are of high interest, and companies in phase I that have some human efficacy data are also open to consideration. The firm is not interested in therapeutics areas with subjective endpoints such as pain and mental disorders.

The firm is looking for both private and micro-cap publicly held companies, and evaluates management on a case by case basis. Taking a board seat is not a requirement for the firm and their involvement in the management of the firm varies based on the needs of the company. The firm is interested in both leading as well as co-investing in investment rounds.

Hot Life Science Nation 2: Family Office Makes Direct Investments in Several Areas

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A multi-family office based in the Central US is looking to make direct investments in a variety of sectors including healthcare & life sciences.  Investments from this firm in early-stage companies are typically in the form of equity, whereas debt investments in later-stage companies may be considered.  The office’s allocations are highly variable, but are typically at least $3 million.  The firm primarily invests in US-based companies, but Canadian companies may also be considered.

Within the life science sector, the firm has diverse interests, with a primary focus on medical devices and medical service providers (including biotech R&D services and healthcare IT companies). Investments in therapeutic drug development may also be considered. The firm is a generalist investor, and is open to investing in both preclinical and clinical-stage companies and considers opportunities on a case by case basis. While the firm will consider investments in almost any indication, they prefer to invest in large markets, and do not consider investment opportunities in rare diseases.

This family office seeks to invest in solid management teams that have developed a product based on proprietary, patented technology. While the firm does make investments into pre-revenue companies, they require that the company have a clearly defined path to revenue.

Hot Life Science Investor Mandate 3: VC Incubator Seeks Wide Range of Early Stage Opportunities

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A life-sciences focused venture capital incubator / accelerator based in the Western US is looking to provide capital in the form of equity and convertible notes to seed and venture stage companies in the life science space. The firm can provide capital in the range of a few hundred thousand to $2 million or more by leveraging its groups of angel syndicates. The firm invests in companies across the United States, Europe and Australia with a preference for California based companies. The firm looks to be involved in 3 new companies per year. The VC is currently looking for companies in areas of Medical Technology / Devices, Therapeutics and Companion Diagnostics. In the Medical Device space the firm is open in terms of sector and indication and will consider firms that are in the development phase as well as those that have entered clinical trials. In the therapeutics space the firm is generally open as well however the firm is highly interested in areas of cell and gene therapy and oncology. For therapeutics the firm tends to get involved at the preclinical stage or during phase I of clinical trials. The firm is looking for confident and experienced management teams. Given the early stage investment style that the firm has, they often work with management teams that are incomplete and have primarily academic backgrounds. Part of the value that the firm looks to add is helping firms fill in the gaps in their current management.

Hot Life Science Investor Mandate 1: Corporate Venture Capital Arm Leverages Preclinical Services in Exchange for Equity

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The corporate venture capital arm of a larger firm based in the Eastern US makes equity investments in early stage life science companies through its network of high net worth individuals, and typically invests between $500,000 to $1 million. The firm also looks to leverage its affiliate company’s array of preclinical services to its portfolio companies in exchange for equity. The firm looks to invest in companies located throughout the U.S., and plans to make 2-3 allocations over the next 6-9 months.

The corporate venture capital is currently looking for companies developing therapeutics, and considers both small molecules and biologics. The firm is open to most indications, but is generally not interested in companies in the cardiovascular, CNS, glioblastoma and pancreatic cancer spaces. The firm is very interested in other areas of oncology as well as ocular and dermal indications, areas in which the firm’s affiliated labs have highly specialized technology that can add value. The firm is looking for companies that are 3-6 months pre-IND enabling phase. The firm is not interested in allocating to companies that are in the lead optimization phase, as they cannot leverage preclinical services to benefit the company.

The CVC generally does not lead investment rounds and acts as a co-investor, but will look to take either a board or board observer seat into companies.

Hot Life Science Investor Mandate 2: Virtual Development Company Seeks New In-Licensing Opportunities

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A pharmaceutical and medical technology development company that seeks to invest and incubate portfolio assets until they reach key clinical milestones is currently looking for new in-licensing opportunities. The firm seeks assets that offer the prospect of significant value inflection within 18-24 months. The firm takes a flexible approach to structuring its business relationships by either in-licensing product assets or forming risk-sharing alliances with entrepreneurs and biotech companies. The firm funds development programs and also takes a hands-on approach to fill the gaps in management team expertise that are necessary to execute capital efficient, path-to-market strategies.

The virtual development company focuses on product development, and seeks innovative therapeutic and diagnostic assets that are competitive and attractive to global marketing and distribution companies. The firm is open to early stage development programs; however at a minimum, the asset must have strong non-clinical in vitro and in vivo animal data, lead drug candidate and/or biomaterials characterized, and strong IP. The firm is not interested in drug discovery and/or drug screening opportunities. Currently, the firm is interested in therapeutics and diagnostics that target oncology and degenerative diseases associated with aging. The firm is also interested in validated biomarkers and biomaterials.

Hot Life Science Investor Mandate 3: European PE Seeks Early-Stage Companies, Has Long Timeline to Exit

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A private equity firm that was founded in 2001 and is based in Europe controls €550 million in assets under management across institutional and retail funds. The firm typically makes equity investments ranging from €1 to €20 million over the lifetime of the investment, and is also interested in the in-licensing of early stage assets. The firm has an 8-year period to exit, and plans to make 2-3 investments over the next 6-9 months. The firm invests in companies located throughout Europe with a focus on France.

The PE is currently most interested in companies developing Therapeutics and Medical Devices, and is also considering investments in Diagnostics. In the Therapeutics space the firm is open in terms of indication but has a preference for companies in immunotherapy, vaccines, and biologics subsectors though they are also open to small molecules. In the medical device space, the firm has a strong preference for investing in cardiovascular devices, but considers other opportunities as well. The firm looks to invest in very early stages of company development – generally when lead assets are preclinical and technologies are still in development.

This firm looks to make seed investments and in some cases be involved in the formulation of a company. The firm is not likely to invest in companies that have already received significant institutional financing and looks to lead investments rounds. The firm also participates in spin-offs from larger companies that are looking to sell non-strategic assets.

Hot Life Science Investor Mandate 1: PE Debt Provider Specializes in Healthcare, will Invest as Early as Phase II

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A firm that provides debt financing to companies in the life science and healthcare sectors is based in the Eastern US, and offers financing in the forms of senior secured term loans, cash flow loans, revolving lines of credit, real estate and equipment loans. Loans may vary in size from $500,000 to $40m, with ranges and payment terms varying according to the type of loan provided.

The PE typically issues about $400-500m in debt per year. Debt is provided to companies for working capital, growth, expansions, recapitalizations, product licensing or acquisitions, or to purchase equipment or real estate. The firm considers opportunities in the USA, Canada, Europe and Oceania.

In the life science sector, the PE invests in companies developing therapeutics and medical devices.  The firm considers lending to therapeutic companies with a product in the Phase II development stage or later, or to devices in the clinical development stage or later.  They invest opportunistically, but typically avoid the diagnostics and the ophthalmology subsectors (particularly when considering single-asset companies). The firm seeks to invest in differentiated technologies, not products that will bring marginal increases in standards of care.

The organization invests in both post-revenue and pre-revenue companies.  In pre-revenue companies, capital-intensive projects are avoided; they typically deploy capital to bring a company to the next inflection point (such as the break-even point, or an acquisition). The firm prefers to lend to companies that have already received the backing of a number of institutional investors such as VCs, and the ability of these investors to provide follow-on financing if necessary is a key part of their evaluation of an opportunity.  When considering management teams, the PE prefers those who have prior experience in industry and have learned from their past successes or past failures.