Sofinnova Readies To Wrap Fund IV –

SAN FRANCISCO -Sofinnova Venture Partners IV was slated for a final wrap on about $73 million in mid-April.

Launched in late 1997, the $60 million-targeted fund was raised in Europe and the United States and held multiple closes (VCJ, November 1998, page 14). European backers – mostly French – put up about two-thirds of the fund, said Sofinnova Inc. Partner Mike Powell.

The early-stage vehicle will invest in information technology and life sciences companies, focusing mostly on the western U.S. but also considering deals in Europe and Israel.

About three-fourths of the fund’s capital came from institutions. The vehicle features an 80%/20% carried interest split and a 2.2% management fee, Mr. Powell said.

Fund raising took several months longer than expected by the three-partner team of Alain Azan, Robert Carr and Dr. Powell, in part because the firm had split its attention between seeking international investors and investing Sofinnova’s existing capital. The group had completed 11 deals in the midst of fund raising.

Limited partners include Sun Life of Canada, Axa/UAP, Vontobel, BankAmerica Capital Corp., France Telecom, Banque International a Luxembourg, Biomerieux, Credit Agricole, Financiere Natexis and Dresner Kleinwort Benson. The Dassault, Merieux, Phillippe and Bongrain families also invested, according to Mr. Azan and Dr. Powell.