ST. LOUIS, April 11, 2008 /PRNewswire/ -- RiverVest Venture Partners announced today that it has completed fundraising for its second fund, RiverVest Venture Fund II, L.P., with total committed capital of $75 million from private investors. RiverVest's first fund, which was licensed as a Small Business Investment Company, had total private capital of $45 million, plus one tier of leverage from the Small Business Administration.
RiverVest co-founder and managing director Thomas C. Melzer said, "We are pleased by the significant increase in the amount of private capital committed to Fund II compared to Fund I, as well as the broadening of our institutional investor base that this increase reflects."
Out of 16 investments in RiverVest's Fund I, half were sourced in the Midwest, including three in St. Louis. "This strategy is appealing to institutional investors, who don't like narrow geographic limits but do like the attractive valuations available in the Midwest," said Jay W. Schmelter, also a RiverVest co-founder and managing director.
RiverVest's Fund I portfolio currently includes 10 active companies: Five in medical devices, three in biopharmaceuticals, one in specialty pharmaceuticals, and one in healthcare services. Eight of these are fully funded to profitability or an exit.
Fund II will pursue the same investment strategy as Fund I, with a focus on early-stage medical device and biopharmaceutical opportunities. The Fund II portfolio currently includes six active companies, three of which were co- founded by RiverVest.
"We invest nationally to diversify our portfolio and to build relationships with leading venture capital firms on the coasts - firms that will present investment opportunities to RiverVest as well as participate in those we originate," said Mr. Melzer. "At the same time, we are located in a region with many outstanding research institutions, but one that is under- served by the venture industry."
|SOURCE RiverVest Venture Partners|
Copyright©2008 PR Newswire.
All rights reserved