IFC MAKES FIRST INVESTMENT IN SA's BIOTECHNOLOGY SECTOR
Johannesburg - Tuesday November 13, 2001
The International Finance Corporation (IFC) will promote the development of life
sciences and biotechnology expertise in South Africa with a pioneering
investment of R20-million in the Biotech Venture Partners Fund (Bioventures).
Bioventures is South Africa's first venture capital fund which focuses on the
life sciences and biotechnology sector.
Mr Michael Tiller, IFC's regional hub manager said: "This investment will help
to commercialise the life sciences and biotechnology sector by addressing key
financing needs and growth impediments. It will also encourage talented
scientists and entrepreneurs to pursue business prospects in the country,
thereby fostering economic growth and job creation."
Mr Rashad Kaldany, director of IFC's oil, gas, and chemicals department and head
of IFC's recently established biotechnology working group, added: "This project
represents IFC's first investment in the life sciences and biotechnology sector
- an area that could potentially have a significant economic and developmental
impact in developing countries"
Founded in March this year Bioventures will be managed by Biotech Venture
Partners (Pty) Ltd., a joint venture between Gensec Bank and Real Africa
Holdings. Gensec Bank, a member of the Sanlam Group, is a full service
financial services company and contributes its experience in managing private
equity and venture capital funds. Real Africa Holdings has interests in
financial services, information technology, healthcare, and fishing industries,
and contributes its extensive and relevant network of resources. As founder
participants, Gensec Bank and Real Africa Holdings will each invest R20-million
in Bioventures.
Over the next four years, the fund hopes to make about 12 investments in early
stage life science and biotechnology companies in South Africa that have defined
market and export strategies, proprietary or exclusive technologies, and skilful
management teams. The fund will support these companies with active governance,
assistance to management teams, and networking capacity. IFC and the sponsors
could eventually contribute to the internationalisation of successful business
ventures.
The IFC's mission is to promote sustainable private sector investment in
developing countries, helping to reduce poverty and improve people's lives. It
finances private sector investments in the developing world, mobilises capital
in the international financial markets, and provides technical
assistance and advice to governments and businesses. Since its founding in 1956,
IFC has committed more than $31-billion of its own funds and arranged
$20-billion in syndications for
2 636 companies in 140 developing countries. IFC's committed portfolio at the
end of the 2001 financial year was $14,3-billion.
The IFC's investment follows hard on the heels of the Industrial Development
Corporation's R20-million investment in Bioventures and raises the fund to
R80-million.
According to Ron den Besten, general manager of Gensec Bank's private equity
division, Bioventures has attracted a great deal of interest from people with
potential investments. "We have a pipeline of most attractive prospects. The
Bioventures team, headed by Dr Heather Sherwin, is now engaged in examining
these opportunities and we hope to be able to make an announcement of our first
investment before the end of the year."
Mr den Besten said: "We are delighted that Bioventures has attracted the support
and commitment of such important investors in this economy as the IDC and the
IFC. It is our task to reward that commitment by developing the outstanding
biotechnology opportunities that we know can be found in this country."