Advent closes life sciences fund on $125m

Advent International has announced a $125m final close on its third healthcare and life sciences early stage vehicle.

Boston-based international private equity firm Advent International has announced the final close of its Health Care & Life Sciences III fund (HCLS III) on $125 million (€103 million).

The venture capital vehicle will focus on early-stage investments in biotechnology, emerging pharmaceuticals and medical technology. Advent’s Health Care & Life Sciences II fund closed in 1999 on $100 million. Fundraising for the third fund commenced in 2002.

One of Advent’s major investors in the new fund is AstraZeneca, one of the world’s leading pharmaceutical companies, according to a statement. HCLS III also received commitments from several US and European institutional investors. In all, 60 percent of investors are from North America and 40 percent from Europe.

On AstraZeneca’s investment with the firm, Advent partner Ann Bilyew said “having a major pharma as a substantial investor is viewed favorably by management teams seeking the benefit of a strategic relationship with a leading company in our industry.”

The new fund has already led two investments – a $65 million series C financing for pain-management drug manufacturer AlgoRx Pharmaceuticals and a $22 million series A financing for minimally invasive vascular technologies company Millimed Holdings.

Most recently in April, Advent – which manages approximately $6 billion in capital in a number of private equity vehicles – teamed with Hartford, Connecticut-based Conning Capital Partners to lead a $130 million management buyout of Long Term Care Group, a provider of outsourced administrative services to the long-term healthcare insurance industry.