Fountain Healthcare Partners (“Fountain”) announced on 5/23/19 the initial closing of its third fund, Fountain Healthcare Partners Fund III, L.P. (“Fund III”) with €118 million of committed capital, exceeding its initial target raise of €100 million.
Fund III is a dedicated life science venture capital (“VC”) fund and brings Fountain’s total capital under management to €294 million. Within the life science sector, Fund III will primarily focus on specialty pharmaceuticals, biotechnology and medical devices.
Fountain will invest a majority of the capital in Fund III within Europe but expects to also make investments in the US market. Fund III is expected to make 10 to 12 investments in predominantly private life science companies.
The €118 million capital raised was sourced from major domestic and international institutional investors, including fund of funds, sovereign funds, corporate investors and family offices. Investors in Fund III include the European Investment Fund (EIF); Coolidge Limited, an investment vehicle of Mr Dermot Desmond; the Ireland Strategic Investment Fund (ISIF) and Allied Irish Bank (AIB).
Dr Manus Rogan, co-Founder and Managing Partner at Fountain, commented:
“Fountain’s investment strategy focuses on building a balanced portfolio of companies with complementary risk and return profiles within the life science sector. This strategy has resulted in a strong portfolio of investments for both Fund I and Fund II. The performance of our first and second funds is reflected in both the level and quality of new and existing investor participation in Fund III. With €118 million raised we are also pleased to have exceeded our initial close target of €100 million.
Fountain invests in entrepreneurs and companies with disruptive technologies or products that have a clear economic benefit and a defined pathway to commercialization, value enhancement and exit. Fountain typically leads or co-leads its investments and has sourced private and public deals from start-ups, corporate spin-outs and turnaround situations.