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Sofinnova V capped at €385m

Paris-based Sofinnova Partners has pulled off a rare fundraising success for a European venture group, raising €385m for its fifth vehicle.

Sofinnova Partners, the start-up and early-stage venture investor backing life science and IT companies across Europe, has closed a fully subscribed new venture capital fund, Sofinnova Capital V, at €385 million ($500 million).

According to a press release, fundraising commenced in September last year with a €350 million target which Sofinnova guaranteed at the time would not be exceeded by more than 10 percent.

Investors in the fund include AlpInvest Partners, BP Pension Fund, CDC Entreprise, European Investment Fund, Crédit Agricole Private Equity, HarbourVest Partners, JPMorgan Fleming Asset Management, LGT Capital Partners, Partners Group and The Wellcome Trust.

Sofinnova Capital V is the largest venture capital fund organised by a European manager since the bursting of the technology bubble and a sign that institutional investors are still prepared to back certain European venture groups.

Sofinnova, which is led by managing partner and chairman Jean-Bernard Schmidt, says it is focused on identifying trends in its preferred industry sectors early and on working with management teams capable of turning their businesses into global leaders. A close relationship with Sofinnova Ventures, a sister company based in San Francisco, is part of the firm’s offering to investors, as is a stated focus on university, research centre and corporate spinouts.

Commenting on the significance of the fundraising, Schmidt said in a press release: “The rapid pace at which we have raised our fifth fund is a good indication of investors’ confidence in our strategy, as well as a positive sign for the European venture capital industry. We believe that European technology and European venture capital have a bright future going forward.”

MVision Private Equity Advisers acted as placement agent for the firm. Paris-based law firm SGDM acted as legal and tax counsel.