TVM just shy of €250m target

Technology and life science-focused venture capital firm TVM has raised €240.3 million from European, US and Asian investors to invest in drug discovery and development.

Munich and Boston-based TVM has held a €240.3 million ($290.8 million) final closing on its latest life science fund, TVM Life Science Ventures VI (TVM LSV VI).
TVM originally started marketing TVM LSV VI in June 2004, setting a €250 million target on the vehicle. The fund held a first closing in November 2004 at €165 million.

European VC is at the bottom of everybody’s list in the industry, they’re more interested in buyouts as far as Europe is concerned.

Dr. Helmut Schuhsler, managing partner, TVM

Dr. Helmut Schühsler, managing partner of TVM’s life science’s division, said that the fund’s final close was “just shy” of its €250 million target due to difficult market conditions for venture capital in Europe. Schühsler told PEO: “European VC is at the bottom of everybody’s list in the industry, they’re more interested in buyouts as far as Europe is concerned.”
Schühsler added that many investors are worried about a lack of exits and distributions in the life science sector, and that “some are worrying that the industry will have a hard time producing the returns that everyone is expecting”. 
There was potential to reach the fund’s target, said Schühsler, but the “fundraising was so intensive and time-consuming that we decided to call it a day at the end of September and go back to focusing on our portfolio”.
There was no placement agent for Fund VI, unlike Fund V, which was advised by UBS.

Schuhsler: VC has a tough time in Europe

TVM LSV VI saw commitments from new investors European Investment Fund (ERP-EIF Fund of Funds), also a co-lead investor, Skandia Liv Asset Management, Development Fund of Taiwan, pharmaceutical group Quintiles Transnational, and US-based biotech firms Genzyme Corporation and Biogen Idec.
Commitments from previous investors in TVM funds included co-lead investor AlpInvest, KfW Bankengruppe and Temasek Holdings.
TVM LSV VI will continue Fund V’s strategy of targeting both early and late-stage drug discovery and development companies in the US and Europe, with allocation split 60 percent across Europe and 40 percent across the US. The 2001 vintage LSV V fund, which closed on €336 million, is now fully allocated according to the firm.
The new fund has already invested in two European biotech firms in the last few months: Milan-based Newron Pharmaceuticals, currently in phase III clinical development in Parkinson’s Disease and phase II in neuropathic pain; and Radebeul, Germany-based elbion, a developer of small molecule therapeutics.
Founded in 1983, TVM has raised more than €1.4 billion and invested in over 220 information life science and technology companies.