Life sciences investment bank Burrill and Company and Life Sciences Transactions Support of PricewaterhouseCooper (PwC/LTS) have launched an investment program focusing on Israeli life sciences companies. Under the plan, Burrill, for the first time in its history, will examine investments in Israeli companies. PwC/LTS will scout candidate companies for Burrill.
Burrill manages $500 million in its life sciences specialist funds, and closed a $200 million fund two months ago. Future investments in Israeli companies will be made by this fund.
Major corporations from many industries are limited partners in Burrill funds, including Archer Daniels Midland Co. (NYSE:ADM), Bayer (NYSE:BAY; LSE:BYR; XETRA:BAYG), Degussa (XETRA:DGXG; LSE:DEG), IBM (NYSE:IBM), Mitsubishi Corporation (TSE:8058), Nestle (SWX:NESN), the Siefried Group, SK Telecom (NYSE:SKM; KSE: 17670), and Unilever plc (NYSE:UL; LSE; XETRA:ULVR).
PwC/LTS is Kesselman and Kesselman - PricewaterhouseCoopers Israel's life sciences corporate finance arm, founded three years ago. PwC/LTS began cooperating with Burrill in strategic partnerships a year ago, and recently began cooperating in venture capital as well.
Burrill and Company CEO G. Steven Burrill told "Globes" that thanks to Burrill's satisfaction with its cooperation with PwC/LTS, the new plan was a natural development of Burrill's great and growing interest in Israeli biotechnology industry. "We're very excited by our exposure to Israeli biotechnology, and we see a good opportunity to locate companies and help them grow quickly. It's true that we haven’t invested in Israeli companies until now, but it's impossible to ignore the fact that Israel is the leading country in the world in raising foreign capital."
"Globes": Which companies are candidates for investment?
Burrill: "We're looking for companies with excellent management that operate on a global scale in a growing market, so that together we can move the company forward. Our funds invest in early-stage companies in biotechnology, medical devices, agro-biotechnology, and other fields. We'll invest $5-15 million in each company. The first investment will be $3-5 million, and the rest will be allocated for follow-on rounds.
"I think this makes us a leading player in the field. As for Israeli companies, I don’t believe that we'll invest in the seed and early stages. We're not players in the conceptual stage that still has to be proved. We prefer working with mature companies with a product and strong management team. I also believe that our investments will be made in cooperation with local venture capital funds. I believe we'll make five investments in the first quarter of this year. We're already examining some Israeli companies. We're not passive investors. We prefer being very involved in the companies we invest in."
Published by Globes [online] - www.globes.co.il - on March 7, 2004