Montreal-based CTI Life Sciences has raised C$134 million in the first close of its second venture fund. The pool’s limited partners include Teralys Capital and BDC Capital via the Government of Canada’s Venture Capital Action Plan. CTI II will invest mostly in biotherapeutics.
MONTREAL, Jan. 15, 2015 /PRNewswire/ – CTI Life Sciences announced today the first closing of its second venture capital fund (“CTI II”), with C$134 million of capital now available for investment. The new fund includes reaffirmed support from CTI’s existing Québec institutional investors along with new investors Teralys Capital and BDC Capital via the Government of Canada’s Venture Capital Action Plan (VCAP).
Montréal-based CTI Life Sciences was established in 2006 with a C$ 100 million first fund. The first fund has delivered a solid performance, with three successful exits to date including the US$ 1.1 billion acquisition of Enobia Pharma by Alexion Pharmaceuticals, one of the largest stage-adjusted deals thus far for a Canadian biotech company.
CTI II will continue to invest predominantly in biotherapeutics and opportunistically in medical technologies and healthcare IT. The fund mainly seeks to build great companies that develop assets at the pre-clinical to early clinical phase. Its primary focus of investment will remain in Québec and Canada where approximately two thirds of the investments will be located, with the remainder in the U.S. In line with its expanded reach, CTI has opened an office in the Northeast USA, which complements its main base in Montréal.
In addition to Jean-François Leprince, Ken Pastor and Shermaine Tilley, who were already managing partners in first fund, CTI II has recruited new US-based partner Janelle Anderson (ex-Merck) as well as new Montreal-based principal Laurence Rulleau.
“Our Government created the Venture Capital Action Plan to help foster a supportive environment that encourages innovation and ensures that businesses have the necessary resources to realize their full potential,” said Finance Minister Joe Oliver. “The investments made by CTI Life Sciences will help early-stage firms improve their operations and create jobs, growth and long-term prosperity for Canada.”
“This is an exciting time to invest in life sciences”, said Ken Pastor, general partner at CTI II. “We also have expanded our investment team and have benefited from fantastic support from our institutional investors, without which this new fund would not have been possible. We now stand to grow and continue delivering superior financial performance.”
“This new investment by the Fonds de solidarité FTQ shows our willingness to build on the success of the CTI I fund, as well as to continue building a performing Québec-based investment franchise for the health sciences sector. With deep Québec roots, the CTI II fund will expand the availability of capital, one of three strategic assets Québec offers the sector, the other two being the availability of research and service infrastructures and an important pool of research talent”, declared Alain Denis, Senior Vice-President, New Economy, at the Fonds de solidarité FTQ.
“La Caisse helps to grow and develop promising companies in the life sciences sector with this second investment in Québec’s CTI Life Sciences Fund,” said Christian Dubé, Executive Vice-President, Québec of la Caisse de dépôt et placement du Québec. “By making this investment, la Caisse reaffirms its commitment to a recognized fund that successfully contributes to an attractive, dynamic niche.”
“Teralys is proud to continue expanding its local support in life sciences. CTI II, our latest investment in this field, will contribute to the building of companies based on great entrepreneurs and top medical innovations”, said Cédric Bisson, partner at Teralys Capital.