ST. LOUIS, Feb. 6, 2012 /PRNewswire/ -- RiverVest Venture Partners today announced that it successfully sold four life science companies for more than $1 billion, generated upfront returns of up to five times the initial investment, and beat industry benchmarks.
"RiverVest has really separated itself from the pack," says Boston-based investor John F. Brooke, who manages the Vectis Healthcare & Life Sciences Fund, which is an investor in RiverVest Venture Partners Fund II, L.P.
RiverVest, which focuses exclusively on life science innovations, founded two of the four companies within the last four years, bucking recent trends for early-stage life science companies to take an average of five to eight years from initial investment to sale. RiverVest participated with several other leading venture capital firms in these investments.
"At RiverVest we strive to build early-stage life science companies to sell within three to five years, including companies we found," says Jay W. Schmelter, RiverVest managing director and co-founder. "Our strategy is to focus on a few high potential investments, take an active role, sometimes as interim management, and leverage our research, clinical, operational and investment expertise to make them attractive for strategic buyers."
In its payout last month, RiverVest Venture Fund II delivered a return on investors' capital exceeding the most recent benchmarks reported by Cambridge Associates, LLC, a leading investment advisory firm. When compared with other healthcare venture capital funds started in 2006, RiverVest Venture Fund II's Distributions to Paid-In Capital (D/PI), a common industry metric, is 63%, while the industry median was 15% and maximum was 55% as of Sept. 30, 2011[i]. That means that the RiverVest Fund II has returned more capital to investors than any fund in Cambridge Associates' Sept. report.
"Many people say the life science venture mod
|SOURCE RiverVest Venture Partners|
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