Isomer Capital announces first close of new EUR100m opportunities fund
Isomer Capital has completed the first close of “Isomer Capital Opportunities”. The new co-investment fund is backed by British Business Investments, through its Managed Funds Programme, amongst other global institutions.
The goal of the new opportunities fund is to build on the success of ‘Isomer Capital I’, the firm’s fund-of-funds that invests into early-stage venture capital firms across Europe. Isomer Capital Opportunities will enable the firm to continue early growth investing alongside its VC partners into the UK and Europe’s fastest growing technology companies.
Isomer Capital Opportunities will provide ongoing support to fast-growing technology scale-ups from within the firm’s early-stage portfolio. Isomer’s first hybrid fund of funds gained exposure to companies in 34 countries, generating high and consistent demand for growth capital.
Isomer Capital Opportunities will co-invest in approximately 20 companies sourced from within the firm’s previous fund-of-funds, Isomer Capital I.
Chris Wade, Co-Founder and Partner of Isomer Capital, says: “Together with our partner VC funds we continuously monitor the most promising portfolio companies that have rapidly growing revenues and address a market opportunity that could enable a company to become a world class leader. Isomer Capital Opportunities will typically invest in companies that have been in the Isomer portfolio for more than eight quarters and demonstrate a strong fully-formed management team with a shared vision of building a global company.”
Judith Hartley, CEO of British Business Investments, says: “Isomer Capital is a specialist fund of funds manager, with well-established venture and growth capital investment capabilities. This commitment to Isomer’s co-investment fund is well aligned with the strategic aims of the Managed Funds Programme and will provide a steady stream of capital to innovative growing businesses across the UK.”
The investment from British Business Investments comes from its GBP500 million Managed Funds Programme, which is designed to address the patient capital funding gap in the UK. By targeting a commercial rate of return, the continuing aim of the programme is to demonstrate the attractiveness of longer-term, later-stage venture and growth capital investments for institutional investors. Access to these sources of patient capital will enable ambitious companies to reach their full potential and help make the UK a great place to start-up and scale a business. This investment continues a strong relationship between British Business Investments and Isomer Capital, as it also invested in the EUR250 million Isomer Capital II Fund of funds, through the Managed Funds Programme.
In addition to British Business Investments, Isomer’s funds are backed by foundations, corporations, and family office investors from Europe, Asia and the US. Many seek to access innovation and, in some cases, co-invest alongside Isomer and its partners, a factor instrumental to Isomer and its portfolio companies’ success.