MVM Ltd (MVM), the life science venture capitalist, is planning to raise a second fund, MVM International Life Sciences Fund II, to invest in early stage life science companies globally.
The fund is aiming to have a first closing of £40m and already has pre-commitments from investors in the company’s first fund – the UK Medical Ventures Fund – for £27.5m. Hoare Govett Limited is acting as sponsor to the fund.
Dr Stephen Reeders, MVM’s chief executive believes that early stage selected investments will provide the best long-term returns. “We are clearly differentiated from other funds by our focus on companies at the earliest stage of development, a segment in which there is a very strong supply of opportunities but few investors willing to evaluate them.”
MVM’s specialist healthcare team focuses on start-up and early stage private companies. The company's funds have rights to technology developed by the Medical Research Council [MRC], giving them unique high-quality deal flow. Five of MVM’s current portfolio companies are developing MRC technology.
MVM raised its first fund in April 1998 and has been involved in the creation and financing of life science companies in the UK, Europe and the US. It does not publish interim returns but has said that returns to date on its first fund are well above average for funds of this kind.