$13 billion Raised by Life Science Focused Private Equity Funds in the Past Three-Years

London, United Kingdom, September 30, 2009 --(PR.com)-- Life science focused private equity funds have been growing in popularity over recent years as more institutional investors have included funds with a focus on the sector in their investment strategies.

In 2007, 32 life science private equity funds raised over $6 billion and 2008 began promisingly with $3.3 billion raised in H1 by life science focused private equity funds. Fundraising dropped off in H2 2008 however, when the global recession began to take hold of private equity markets. A total of $600 million was committed to life science focused funds in this period. In 2009 conditions have remained challenging - to date, life science private equity funds have raised a total of $2.6 billion this year.

These figures all relate to private equity funds focusing specifically on life sciences. There are in addition a significant number of more generalist private equity funds which include life sciences as part of a wider investment strategy. These vehicles have raised a total of $35.7 billion since the beginning of 2007, with a significant portion of this capital likely to be invested in the life sciences sector.

Please see www.preqin.com/lifesciencereport to see Preqin’s research into private equity life science funds.

Key findings include:

· In 2007 life science funds raised $6.4 billion, in 2008 they raised $3.9 billion and in 2009 YTD they have raised $2.6 billion.
· Since 2007, 70% of the total capital raised by life science funds has been raised by US focused vehicles.
· The life science private equity fundraising market is almost wholly comprised of venture vehicles, with just six non-venture life science funds raised since 2007.
· Essex Woodlands Health Ventures VIII is the largest life science private equity fund to close to-date, raising $900 million.
· The outlook for the future of the industry looks strong, with a total of 31 new life science funds currently on the road seeking capital commitments from institutional investors. In total, these funds are targeting $5bn.

The full report is available to view on www.preqin.com/lifesciencereport

Comment:

“Life science is a fundamental sector for private equity venture funds; it is also one of the most challenging. As a consequence of complex scientific development intricacies, a politically influenced regulatory environment and the cyclical nature of clinical developments, life science is a venture sector inherent with risk. Nevertheless, sectors including biotechnology, pharmaceuticals and medical devices are proving increasingly attractive to private equity investors given their potential to dislocate existing billion dollar markets.”

Benjamin Formela-Osborne, Research Analyst and Author of Report, Preqin.

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