HealthCap IV, the healthcare venture capital fund which targets investments across the US and Europe, has closed on SEK3bn (E330m).
The fund, the first raised by Swedish parent Odlander Fredrikson Group to seek commitments from international investors, was ‘heavily oversubscribed’ by a list of top-ranking investors, including Grove Street (for CalPERS), HarbourVest Partners, Allianz Private Equity, Swiss Re and the Fourth Swedish National Pension Fund.
“We’re very pleased with the investor group, particularly given that most are first-time investors in HealthCap,” commented Peder Fredrikson, founding partner of Odlander Fredrikson. “It is a sign of confidence in our investment strategy that the fund was oversubscribed.”
HealthCap IV will invest in the commercialisation of medical science and innovations in the medical sector. The fund is targeting investments across all stages in the Nordic region, Western Europe and the US. Over half of the funds capital will be set aside for European investment. The fund has already made four investments, split between early and late-stage businesses.
“We have not set a typical investment range because we plan to invest across all sectors, from start-ups through to late stage investments,” adds Fredrikson. “Valuations are very favourable at present, particularly in late stage businesses.” Fredrikson added that the fund is likely to make around 25 investments.
The three previous HealthCap funds, with total committed capital of SEK5.8bn, continue to make follow-on investments in existing portfolio companies. More than 50 initial investments have been made by these three funds, of which 20 were in start-up companies.
MVision Private Equity Advisors acted as global financial advisors to Odlander Fredrikson, with CSFB and Handelsbanken as regional placement agents.