HealthCap closes fourth fund

Swedish life science specialist HealthCap has announced a final closing of HealthCap IV at SEK3 billion. The fund was launched this summer and will focus on investments in the medical sector in the Nordic region, Western Europe and the US. Over half of the fund will be allocated to investments in Europe. Typical investments include the commercialisation of medical sciences and innovations in start-ups, as well as more established companies.

Investors in the new fund include existing as well as new participants such as the 4th Swedish National Pension Fund, AGF Private Equity, AIG Global Investments, Allianz Private Equity, ATP Private Equity, Barclays Bank UK Retirement Fund, CDP Sofinov, Grove Street Advisors for CalPERS, HarbourVest Partners, MN Services, and Swiss Re.

Bjrn Odlander of Odlander Fredrikson Group, exclusive investment advisor to the fund, said of fund raising: “Conditions were tough, but we are happy that we were able to close in such a short time. Interest from the market led us to be substantially oversubscribed.”

The fund has already made four investments and is expected to make between 20 to 30 investments, ranging from start-ups through to later stage. The first three funds have financed 55 companies. Around 20 of the companies were start-ups and several have successfully completed IPOs. The firm’s previous fund HealthCap III is now fully invested, but has retained sufficient funds for follow-on investment.

MVision Private Equity Advisers Limited acted as global financial advisors to the Odlander Fredrikson group with CSFB and Handelsbanken as regional placing agents.