GBS closes $145m venture fund

Melbourne venture capital company GBS Venture Partners has announced the close of its GBS BioVentures III Fund. The fund raised AUD$145 million, making it more than twice as large as GBS's previous funds, and well over its original target of $120 million.

The closing of the new fund will bring the total amount GBS has under management to $300 million.

Brigitte Smith of GBS Ventures said the company was "pleasantly surprised" by the reaction to the fund, which opened in December. "This is a great endorsement of Australian life science, and the investment opportunities that it creates," she said.

Most of the commitments came from investors who had invested in other GBS Funds, including Westscheme, clients of Quentin Ayers, Wilshire Private Markets Group and clients of Macquarie Funds Management. New investors include MilitarySuper, Quay Partners, Statewide and clients of the Counterpoint Group.

Smith said the ease of the raising was because of GBS's track record and specialisation in life sciences. "We [have] done 25 deals in Australia and we only do life science,' she said.

GBS BioVentures III will be making investments of up to $12 million at the seed, start-up or early expansion stage of company development. "We are currently working on a number of attractive opportunities in both therapeutics and medical devices," said Smith. "Our existing funds also currently still have capacity to invest."

"Compared with when we raised our first fund the quality of opportunities is much better -- both the underlying opportunities and the way they're presented. But you can never have to much good deal flow."

GBS manages three other funds: the Australian Bioscience Trust , GBS Bioventures II and the Genesis Fund.

In March, the New Zealand-based BioPacificVentures Fund also announced its first close at NZ$100 million. However, other venture capital funds, including the $200 million Burrill Australia Life Science Fund and the Scientiaus fund, have struggled to meet their fundraising milestones.