London , UK, February n, 2013 – Rosetta Capital Limited announced today the establishment of Rosetta Capital IV LP, a €30 million direct secondary fund which was formed to invest in thirteen life science companies alongside Karolinska Development one of Europe’s leading medical research institutions.
Rosetta Capital IV LP was formed with the support of leading institutional and family office investors, and has entered into a share purchase agreement with Karolinska encompassing a diverse portfolio of companies developing innovative therapeutics, diagnostics and devices. The majority of the underlying healthcare assets are later stage in Phase II clinical trials, and were chosen to generate an attractive near term investment profile for investors. In conjunction with the transaction, more than €45 million was also committed to follow-on investment in the portfolio to achieve key value milestones.
The transaction with Karolinska was innovatively structured to eliminate the risk of capital loss for Rosetta investors while at the same time maintaining the opportunity for investors to participate in the considerable upside in the portfolio. The Rosetta Capital team of specialist life science investors will assume board roles in the majority of the portfolio companies and will work proactively with the Karolinska team to generate value.
Rosetta was advised on the transaction by specialist placement agent Bluetower Associates and legal counsel Kirkland Ellis.
Donald Macpherson, non-executive Chairman of Rosetta Capital said:
“We were delighted to structure a win-win transaction structure which elegantly fit the needs of both our partners at Karolinska and our investors. We are all aware of the significant opportunity in the healthcare sector which has demonstrated superior returns over other venture capital segments over the last twenty years. We believe our transaction structures are unique and smooth the volatility that investors have historically experienced in the sector.”
Torbjörn Bjerke, CEO of Karolinska Development said:
“We are very pleased to complete this structured transaction with the Rosetta team, and very much welcome their value added roles working with our portfolio companies. The deal structure allows us to maintain the upside in the defined portfolio for our stakeholders, while at the same time providing an attractive return profile and low risk of capital loss for Rosetta investors.”
Tim Griggs, Managing Partner of Bluetower Associates said:
“As a specialist advisor in direct secondary transactions, we worked closely with the Rosetta team to structure and place Rosetta Capital IV. We are pleased to have assembled the sophisticated group of investors this complex transaction required.”
About Rosetta Capital
Rosetta Capital is a specialist venture capital firm focused on the life science and medical technology sectors, with a multinational team from the venture capital, pharmaceutical and biotechnology sectors. For more than 10 years, Rosetta has been working with entrepreneurs, young life science companies and investors to help them achieve their ambitions. Currently, Rosetta manages funds with interests in more than 25 underlying portfolio companies across Europe and North America and with more than USD 250m in value. Rosetta is focused on co-investment portfolio transactions and offers flexibility in transaction structure, adapting strategies to the investment climate. Rosetta is headquartered in the United Kingdom. Rosetta Capital Ltd is Authorised and Regulated by the Financial Services Authority. For more information see www.rosettacapital.com.
About Karolinska Development AB
Karolinska Development aims to create value for patients, researchers, and investors by developing innovations from world class science into products that can be sold or out-licensed with high returns. The business model is to: SELECT the most commercially attractive medical innovations; DEVELOP innovations to the stage where the greatest return on investment can be achieved; and COMMERCIALIZE the innovations through the sale of companies or out-licensing of products. An exclusive deal flow agreement with Karolinska Institutet Innovations AB, along with other cooperation agreements with leading Nordic universities, delivers a continuous flow of innovations. Today, the portfolio consists of 34 projects, of which 15 are in clinical development. For more information, please visit www.karolinskadevelopment.com.
About Bluetower Associates LLP
Bluetower Associates is a private equity secondary advisor focused on direct secondary transactions. With in-depth knowledge of the secondary market and long-term relationships with the global investing community, Bluetower has a proven ability to identify capital for General Partners seeking to re-finance existing portfolios or to purchase orphan portfolios of private equity assets. For further information contact: timgriggs@bluetowerassociates.com