The Business Development Bank of Canada and the Fonds de solidarité FTQ announced today that they have made a US$30 million commitment to Sanderling Ventures in conjunction with its Fund IV, a life sciences fund with a target of US$250 million. The investment from BDC and FTQ will be placed in a Canadian side fund, with Sanderling creating a permanent facility for the development of early-stage life science companies and co-investment opportunities in Montréal.
US$30M Commitment Lures Major Biomedical Investor to Set up Life Science Development Centre in Montréal
Cements Substantial, Long-Term Commitment to Canada from Top-Tier American Venture Firm
MONTREAL, Sept. 5, 2013 /CNW Telbec/ – BDC Venture Capital and the Fonds de solidarité FTQ are pleased to announce a US$30-million commitment to Sanderling Ventures, an investment firm with a 35-year track record of building new biomedical companies. As a result of this transaction, Sanderling will create a permanent facility for the development of early-stage life science projects in Montréal, Canada. The dollars committed by BDC and the Fonds will be placed in a Canadian parallel fund to Sanderling Ventures Fund VII, which is well on its way to achieving its target size of US$250 million.
This promising initiative, which will result in a significant investment in the Montréal and Canadian life sciences sector, will shepherd very early-stage life science projects further along the path to commercialization, at which point Sanderling and other syndicate investors may choose to invest further in the development of these projects. BDC Venture Capital is contributing US$20 million to the fund as part of this financing round, while the Fonds will put in an additional US$10 million. Previous closes of the fund have included co-investors such as the Mayo Clinic, GlaxoSmithKline, and the University of Pennsylvania.
“Sanderling has developed a unique, Canadian-centered approach to address the structural and economic challenges facing life science opportunities as they transition from the research laboratory through development to ultimate commercialization,” stated Neal Hill, Vice-President of Fund Investments, BDC Venture Capital. “We are delighted to welcome Sanderling to Canada as they take on a greater role in the Canadian market. This partnership is a step in the right direction for the Canadian venture capital industry.”
“The Fonds de solidarité FTQ is proud to be a financial partner of the Sanderling Ventures Fund VII which will have a positive impact on Quebec’s life sciences sector,” said Alain Denis, Senior Vice-President – New Economy at the Fonds de solidarité FTQ. “Partnering with performing private funds such as Sanderling and institutional investors such as BDC Venture Capital will foster the creation of new businesses in Quebec’s life sciences sector as well as provides unique co-investment opportunities that perfectly fits Fonds’s strategy in life sciences. Led by an experienced drug development team in Montréal, this initiative will not only help keep Quebec scientists within the province, but also represents a unique opportunity to utilize the existing network of experienced Québec based universities and contract research organizations.”
Sanderling will take preclinical drug candidates that appear to be ready for Investigational New Drug (IND) application through toxicology and early stage clinical studies to determine if the compound is active in humans. Compounds that show promising activity will be developed through the clinical process.
About BDC Venture Capital
With more than $1 billion under management and more than 25 years of industry experience, BDC Venture Capital is an investor of choice focusing on venture funds as well as IT, healthcare, and energy/clean technology companies with high growth potential. From seed through expansion to exit, our mandate is to help build outstanding Canadian companies, while working to create a sound financial ecosystem for Canadian technology ventures. Find out more at www.bdc.ca/vc or on Twitter @BDC_VC.
About Fonds de solidarité FTQ
Created in 1983, the Fonds de solidarité FTQ has been driving the Québec economy for 30 years. With net assets of $8.8 billion as at November 30, 2012, the Fonds is a development capital fund that channels the savings of Quebecers into investments in all sectors of the economy to help create and maintain jobs and further Québec’s development. The Fonds is a partner, either directly or through its network members, in more than 2,000 companies. With over 600,000 owner-shareholders, the Fonds has helped create, maintain or protect almost 170,000 jobs. For more information, visit www.fondsftq.com.
SOURCE BDC Venture Capital
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Fonds de solidarité FTQ
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