Tuesday, February 22, 1994
Rothschild Asset Management is raising money for a new type
of fund, a publicly traded financing vehicle that will combine money with corporate
The International Biotechnology Trust plc plans to raise £100
million (about $155 million), with a cap of £150 million ($225 million), from
international sources. That would give the fund the capability to invest $10-$20
million in each of 15-20 companies. Because IBT will be actively involved in
its investments, it plans to keep its portfolio small.
If Rothschild's strategy is correct, IBT will lower its risk
by proactively working to lower management risk by providing and paying for
the expertise that is missing at companies. It will already have lowered technology
risk, in theory, by investing primarily in later-stage companies that have established
their scientific base.
Maturity brings needs
Starting in 1992, Rothschild began to think that a new type
of fund was needed to meet the needs of biotechnology companies as they moved
through the development process, according to Managing Director Jeremy Curnock
Cook. London-based Rothschild was already managing another fund, Biotechnology
Investments Ltd., which focuses on early-stage companies.