Since the emergence of “Modern Portfolio Theory” and the “Capital Asset Pricing Model” in the late 1960s, institutional investors have taken a quantitatively driven approach to portfolio construction, looking to create portfolio diversification and obtain better risk-adjusted returns by balancing their asset-class exposures. This journey has seen several important advancements in thinking about how to optimally achieve desired results.
Funds that want to take the total portfolio approach first need to get the total portfolio view. To do that they not only need data – and lots of it – but a rock-solid understanding of exactly how they’re going to use it.
HESTA, Hostplus, QIC back Brandon Capital’s sixth fund
Life sciences venture capital firm Brandon Capital has secured funding from the Hostplus, HESTA and QIC for its sixth fund, with an initial close of $270 million. The fund will support the growth of life sciences startups in Australia and New Zealand, invest in scale-ups and allow Brandon Capital to expand its international presence in the UK, Europe and US.
HESTA and Hostplus are existing investors in Brandon Capital funds, while QIC has invested through the Queensland Venture Capital Development Fund (QVCDF), a state government program managed by its private equity team.
“This latest investment builds on a long-standing partnership that aims to provide strong long-term returns to members since our initial investment in Brandon Capital’s first fund in 2008,” said HESTA CIO Sonya Sawtell-Rickson.
“Through our life sciences investments, we’re supporting innovative Australian companies commercialise cutting-edge medical breakthroughs and improving health outcomes while helping create the jobs of the future in the industries where our members work.”
The fund remains open, with “ongoing discussions” with potential investors both in Australia and abroad. Brandon Capital has raised more than A$1 billion across five previous funds, with more than 60 investments in new therapeutic, medical device and health tech companies.
“It is investment partnerships like this that can lead to genuine innovation in the field of biotechnology, and potentially life-changing outcomes for patients, but most importantly help our members grow their retirement savings,” said Hostplus deputy CIO Greg Clark.
“As one of the biggest Australian investors in start-ups and new technologies, Hostplus looks forward to supporting further innovation in medical therapies, and optimising the retirement outcomes of our members, through our investment in Brandon Biocatalyst 6.”
Dr Chris Nave, Brandon Capital managing partner, highlighted late-stage clinical trial results across companies like Azura Ophthalmics, Certa Therapeutics, Catalym and PolyActiva as “recent successes within the portfolio”
“We deeply appreciate our LPs’ continued trust in Brandon Capital and their recognition of the life sciences sector as a rewarding venture capital asset class,” Nave said. “It is a privilege to invest in companies capable of delivering both financial and health returns. We welcome our new investors and look forward to additional LPs joining Fund VI.”
