HBM BioVentures hits fundraising target

The Swiss firm has raised SFr248m from capital increase, meaning the company has raised more than CHF750m in the last six months.

Despite the hard times facing venture capitalists, HBM BioVentures (HBM), a Zürich-based holding company, has overshot the SFr750m (E508m) target it set at the beginning of 2001.

Following a SFr517m round of funding closed in June, the company has raised an additional SFr248m from a capital increase that brings on board a number of banks including Bank Julius Bär & Co, the Swiss private bank.

The firm issued 2.48m registered shares at CHF 100 per share, increasing the group’s share capital to CHF766m. HBM, founded by Henri Meier, erstwhile finance director of Roche Holding, will use the funds to invest in private and public pharmaceutical and biotechnology companies.

Meier said the fund’s ability to attract interest despite today’s difficult fundraising conditions was testament to the trust placed in the firm’s management team and their investment strategy.

Around half of the CHF750m will be invested in privately held companies. The rest will go into quoted companies. Pharmaceutical companies will make up between 60 and 70 per cent of the portfolio, about 15 per cent will be invested in platform technology and between five and 10 per cent will go into medical technology. Investments will be split between companies in the US and Europe.