European investment firm Gimv has launched a new fund focused on growth companies in healthcare services and medical technology.
The fund has secured the support of the Flemish government, which will commit €50m through Gimv’s reference shareholder, VPM.
As a sponsor and key investor, Gimv’s initial investment in this fund will be €50m. On top of this initial €100m, the fund is also looking to attract extra resources from various institutional investors. A formal first closing is planned in the coming year, the firm said.
Ingrid Lieten, viceminister-president of the Flemish Government, said, “In challenging budgetary times it is important not to invest in innovation solely for the purposes of innovating but to invest in innovation as a problem solver for the major societal challenges. The Flemish Government continues to mobilise additional funds for investments in innovation, including innovation in healthcare in order to provide a focused response to the major societal challenges, such as ageing.
“In order to be able to successfully market these promising projects we also need to rely on growth capital. With this Gimv-initiative, Flanders should be able to grow the number of bigger players in the market and also wants to capture and invest in successful initiatives created in neighbouring countries and to introduce them in Flanders.”
Over the next six years, the fund aims to invest in ten to 15 companies in Gimv’s home markets, namely the Benelux, Germany and France. The amount per investment is expected to be up to €25m, both in equity and quasi-equity.
Chairman of the Gimv board of directors Urbain Vandeurzen, said, “The challenges in the health & care sector are huge. The ageing population, a rising number of chronic diseases and better informed patients continue to push up healthcare demand and costs. This forces the sector to find creative and innovative solutions. With the new fund, we want to encourage innovative companies and service providers in the sector to respond to this.”
Gimv CEO Koen Dejonckheere added, “Health & care is one of the sectors central to Gimv’s platform strategy. The launch of this fund is therefore completely in line with our strategy and complements Gimv’s existing resources perfectly. It provides us with the critical mass and fire power we need to invest in the growth and internationalisation of innovative care concepts, with an ambition to lift these projects to the next level. The investment projects within this fund will be managed by the Health & Care platform’s international investment team, led by Bart Diels.”
The Flemish Government’s venture capital fund for biotech companies, Biotech Fonds Vlaanderen, is also managed by Gimv. Gimv is also responsible for the management of two infrastructure funds – DG Infra+ and DG Infra Yield. In early 2009, Gimv established the Gimv-XL fund for investments in larger Flemish growth companies. Later that year, the Gimv-Agri+ Investment Fund was launched in cooperation with the famers’ league Boerenbond. Lastly, in 2011, the Gimv Arkiv Tech Fund II was set up as part of the second ARKimedes arrangement.
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