Investment Approach
Consistent with its entrepreneurial
and scientific approach, Merlin is an active investor in and partner to its
portfolio companies. Merlin normally has a seat on each company board and likes
to play a leading role in financing and other strategic events. The Merlin team
blends science, finance and commercial expertise in human healthcare.
Merlin Fund (Fund I)
Merlin raised the 62
million Merlin Fund in 1997. Fund I was the first major seed fund for U.K.
biotechnology companies, with a planned hold period for each equity investment
of five to seven years. Fund I is fully committed; 88% of its investments are in
biotechnology and 12% are in medical devices. The portfolio includes 8 companies
with equity investments of 8-10 million in each. Its biotechnology investments
are in therapeutics companies (70%) and enabling technology companies (30%).
Merlin Biosciences Fund (Fund II)
The 247
million Merlin Biosciences Fund is one of the largest dedicated biotechnology
venture capital funds in Europe. Its objective is pan-European investing in
mid-stage and late-stage biotechnology companies, with a bias toward marketable drugs.
Its intended hold period for each investment is four to five years. Fund II
closed for subscription in August 2000 and is fully committed. It has a portfolio of 21
biotechnology companies and 2 medical device companies. Its average equity
investment is 8-10 million in each company. 49% of Fund IIs investments are
in U.K. companies and 51% are in European and U.S. companies.
Merlin Biosciences Fund III (Fund III)
The 139 Merlin Biosciences Fund III is a pan-European medical sciences fund, with an intended hold period for equity investments of three to five
years. Fund III makes investments of up to 15 million in life science companies developing human healthcare products. The Fund has made 10 investments to date.
