Luxembourg to establish Life Science Fund

Date: 23-01-2012

Luc Frieden, Luxembourg’s Minister of Finance, and Jeannot Krecké, the Minister of the Economy and Foreign Traide, have recently presented a project for the future of Luxembourg’s economy: the establishment of a Life Science Fund, which targets biomedical technologies.

The “health technologies” action plan, established and presented in 2007 by Luxembourg’s government, foresees the setting up of a suitable financing tool. Within this context, the government has decided to invest, through the Société Nationale de Crédit et d’Investissement (SNCI), in a risk capital fund specialized in the field of biomedical sciences.

In order to ensure that the substantial investment in biomedical research granted by the government (in 2008: €140 million spread out over 5 years) will have effects also from an economic point of view, the government has decided to place an amount through the SNCI in an existing investment fund which has already proved its capacities. After a selection process, the Advent Venture Partners group in London has been selected. Advent Venture Partners was set up in 1988 and the Advent Life Sciences Fund (ALSF I), where the SNCI will invest approximately €20 million, is the 5^th fund established by Advent. It is the group’s first fund exclusively dedicated to biomedical technologies – its 4 other funds target two investment areas: information and communication technologies as well as health technologies. It is a British investment fund denominated in pounds sterling with a life span of 10 years, which can be extended twice by one year. In addition, the European Investment Fund (EIF) is one of the stakeholders of ALSF I.

ALSF I started to invest in February 2011. Up to date, 3 investments have been made. The fund targets around 15 investments of which approximately 10 will focus on the creation of young enterprises and the rest on project funding. 70% of the investments will take place in Europe.

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Luxembourg to establish Life Science Fund

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