The BioIndustry Association (BIA) welcomes the announcement by the Department for Business, Innovation and Skills today that Hermes Private Equity and the European Investment Fund have been appointed, subject to contract, as the fund-of-fund managers of the UK Innovation Investment Fund (UKIIF).
Initially it is expected that the UKIIF will have £325 million to invest, £150 million from the Government and £175 million from private investors, with investment starting at the beginning of next year.
£200 million is for digital/ICT, life sciences and advanced manufacturing.
The £200 million technology fund-of-funds is to be managed by the European Investment Fund.
The UK Government will invest £100 million in this fund, of which at least £25 million is for life sciences.
Hermes Private Equity will manage the £125 million low-carbon and clean tech fund-of-funds.
The BIA has been calling for the establishment of an Innovation Fund since the publication of the Bioscience Innovation and Growth Team Review and Refresh in January of this year, and was delighted when the UKIIF was announced in June.
The appointment of the fund-of-funds managers means that it is now possible for the first, much needed, investments to be made.
Clive Dix, BIA Chairman, said: “The BIA believes that the UKIIF could provide a lifeline to life sciences sector, which has been seriously hindered by the lack of capital over the last five to six years. It is pleasing that the UKIIF has been received with enthusiasm by private investors, and that money will be available from the beginning of next year. We will follow the investments of the European Investment Fund with interest.”