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Fountain Healthcare Partners Raises €118M for Third Fund

May 23, 2019 Off By BusinessWire

Fund Raise Exceeds Target of €100m

Total Capital Under Management Reaches €294 million

DUBLIN & NEW YORK–(BUSINESS WIRE)–Fountain Healthcare Partners (“Fountain”) today announces 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.

With almost €300 million of capital under management, we are
Ireland’s largest dedicated life science venture capital fund. We will
continue to seek opportunities to identify life science investment
opportunities with exciting potential both in Ireland and
internationally. Our ability to deploy significant capital together with
our proven track record of helping early stage companies commercialise
their potential, positions us a partner of choice for ambitious life
science growth companies.”

Aidan King, co-Founder and Managing Partner at Fountain, added:

“Life sciences continues to be one of the best performing sectors for
investor returns, driven by a consistent stream of IPOs and trade sales.
Strong demand for life science investments is a reflection of investor’s
belief in the underlying growth dynamics of the sector and the
investment return opportunities presented by innovative life science
companies.

In addition to financial returns, we are proud of the fact that to
date, funding by Fountain has resulted in US FDA approval of three
products in the areas of Parkinson’s disease, stroke and cardiovascular
disease. These products are transforming the standard of care in these
therapeutic areas and will greatly benefit patients worldwide”

Andrew McDowell, European Investment Bank Vice President said:

“The new €45 million European Investment Fund support for Fountain
Healthcare represents our largest backing in more than a decade of
successful cooperation with venture capital funds. It will further
strengthen Ireland’s impressive venture capital ecosystem. Fountain’s
third dedicated healthcare venture capital fund will benefit from proven
success enabling world-class companies across Europe to develop
impressive new treatments and technologies.”

Paul Saunders, Senior Investment Director, ISIF said:

“Fountain is an excellent example of ISIF co-investing with private
sector partners to attract significant levels of international capital
to Ireland, supporting economic activity and employment here and
generating commercial returns.

This investment, our third with Fountain, builds on the success of
our earlier investments in the biotech, medtech and life science sectors
in which Ireland has emerged as a leading global hub. It will also help
drive ISIF’s commitment to regional development by supporting these
sectors in clusters located throughout Ireland and helping them to
thrive.”

Finlay McFadyen, Head of Investment Banking of AIB said:

“We are delighted to continue our support for Fountain Healthcare
Partners in this fund which will invest in international and Irish early
stage life science companies. These companies will benefit from
Fountain’s expertise and experience. Fountain’s previous track record
demonstrates their successful investment strategy of identifying
companies and entrepreneurs with growth potential and assists to create
value as they transition to the next phase of their business lifecycle.
This strategy aligns to AIB’s strong focus on this growth sector.”

About Fountain Healthcare Partners

Fountain Healthcare Partners is a life science venture capital fund with
offices in Dublin, and New York. Founded in 2008, Fountain is Ireland’s
largest dedicated life science venture capital fund with more than €294
million under management.

Fountain invests in entrepreneurs and companies with disruptive
technologies or products that have a clear pharmacoeconomic benefit and
a defined pathway to commercialisation, 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. The three principals at Fountain Healthcare
Partners Fund III, Manus Rogan, Aidan King and Ena Prosser brings to
investees over 70 years of collective experience in the pharmaceutical
industry, corporate venture capital and VC across multiple investment
and market cycles.

For more information please visit: www.fh-partners.com