London-based Isomer Capital, a private investment firm focused exclusively on European venture capital, announced on Monday the first close of its latest €250M fund, Isomer Capital III (IC III).
The first close of the fund took place four months earlier than anticipated. The firm says that one-third of the new Fund’s target investment came from an early group of returning investors.
Joe Schorge, Managing Partner at Isomer, says, “Though the current economic climate is challenging, the European technology ecosystem has proven to be resilient, innovative and highly productive, bringing exciting new technology products and businesses to the world at an increasing velocity.”
“We will deploy IC III over the next two years, which given the powerful combination of Europe’s maturing talent base and prudent valuations we believe can be some of the best vintage years in the VC sector.”
Transaction Overview
British Business Investments, a commercial subsidiary of the British Business Bank and a repeat and early investor in Isomer, made a commitment of up to €60M.
Isomer Capital has drawn a variety of endowments, pensions, corporations, and family offices from all around Europe, Asia, and the US in addition to British Business Investments and the European Commission.
Fondaco, Happiness Capital, Italmobiliare, Nikon, PwC Germany, one of the biggest foundations in Germany, and a well-known US endowment also invested.
What to expect from the new fund?
IC III builds on Isomer’s strategy of investing in Europe’s finest emerging VC funds and growth firms, giving investors access to some of the most competitive, innovative, and high-potential new technology businesses in the UK and Europe.
Its predecessor, IC II, uses the same strategy and size as the fund and is performing well as its net asset value (NAV) continued to climb in Q4 2022 despite macro problems, preserving its rank in the top 5 per cent of its kind globally.
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.”
“Following our support for Isomer’s ICII in 2020 and the Opportunities Fund in 2021, we are pleased to commit to Isomer Capital III to continue our support for innovative growing businesses,” Hartley adds.
Since its inception, Isomer Capital has made nearly 70 VC fund investments, including 31 co-investments and secondary deals with organisations such as Atlantic Labs, Entrepreneur First, FRST, OpenOcean, OTB, and Seedcamp.
This has given Isomer and its LPs access to 29 unicorns, which represents around 10 per cent of all unicorns in Europe.
About Isomer Capital
Isomer Capital offers venture capital (VC) fund commitments, business co-investments, and liquidity through the secondary acquisition of funds and companies to technology-enabled entrepreneurs across Europe.
By combining an entrepreneurial strategy with portfolio management discipline, Isomer provides efficient institutional access to European technological innovation. The firm attempts to create high profits while controlling risk and providing partners with knowledge and access.
