Forbion has significantly ratcheted up its potential deal size for Fund IV after targeting almost double the capital of its previous vehicle, Private Equity International has learned.
The Amsterdam-based venture capital firm is seeking around €350 million for its fourth fund, according to a source with knowledge of the firm. It held a first close on €270 million for Fund IV this week after launching in May, managing partner Sander Slootweg told PEI.
If successful, Fund IV would be almost double the size of the €183 million 2015-vintage Fund III.
Forbion declined to confirm Fund IV’s official target.
The increased fund size means the firm has the capacity to sign larger cheques from Fund IV than its predecessor, Slootweg said. Fund III could invest up to 10 percent of the fund – or €18 million – at a time, while Fund IV will be able to invest up to 15 percent. The strategy marks a bid to become less dependent on its syndicate of venture capital firms.
Thus far, Fund IV has attracted around 70 percent of its commitments from European LPs, including the European Investment Fund, pensions and insurance companies, with the remainder coming from the US and Canada, Slootweg added.
Forbion’s latest fund will have an increased focus on biotech. It will aim to build a portfolio of approximately 15 companies, of which ten will be existing “growth” opportunities of 20 to 50 percent stakes, and five will be new companies co-founded by Forbion from opportunities carved-out from existing companies.
Fund III has made three exits, according to a statement from the firm. Forbion has 25 companies in its current portfolio, per its website.