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RiverVest co-founder and managing director Thomas C. Melzer said, "We arepleased by the significant increase in the amount of private capital committedto Fund II compared to Fund I, as well as the broadening of our institutionalinvestor base that this increase reflects."
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Out of 16 investments in RiverVest's Fund I, half were sourced in theMidwest, including three in St. Louis. "This strategy is appealing toinstitutional investors, who don't like narrow geographic limits but do likethe attractive valuations available in the Midwest," said Jay W. Schmelter,also a RiverVest co-founder and managing director.
RiverVest's Fund I portfolio currently includes 10 active companies: Fivein medical devices, three in biopharmaceuticals, one in specialtypharmaceuticals, and one in healthcare services. Eight of these are fullyfunded to profitability or an exit.
Fund II will pursue the same investment strategy as Fund I, with a focuson early-stage medical device and biopharmaceutical opportunities. The Fund IIportfolio currently includes six active companies, three of which were co-founded by RiverVest.
"We invest nationally to diversify our portfolio and to buildrelationships with leading venture capital firms on the coasts - firms thatwill present investment opportunities to RiverVest as well as participate inthose we originate," said Mr. Melzer. "At the same time, we are located in aregion with many outstanding research institutions, but one that is under-served by the venture industry."
In addition to closing on Fund II, RiverVest Venture Partners announcedthat John P. McKearn, Ph.D., has joined the firm as Venture Partner.
Dr. McKearn brings 25 years of scientific and operational expertise inpharmaceutical research and development at Kalypsys, Inc., Pharmacia, G.D.Searle & Co., and E.I. DuPont de Nemours and Company.
"We've known John since Pfizer bought Pharmacia back in 2003 and have keptin close contact ever since," said Mr. Schmelter. "John's strong scientifictraining and operational expertise will further our capabilities in sourcingand adding value to our biopharmaceutical portfolio."
While leading Kalypsys, Inc., a privately held biotechnology company inSan Diego, Dr. McKearn raised more than $150 million in private equity from2003-2006. As head of Research for Searle and Pharmacia, Dr. McKearn was animportant contributor to the discovery, development and launch of no fewerthan eight new prescription drugs, including Celebrex, one of the leadingpharmaceuticals to treat arthritis.
"I believe in the quality of RiverVest's personnel, investors andportfolio, along with their vast industry and academic networks," said Dr.McKearn. "Fund I has had an impressive track record, and I look forward toapplying my expertise to building RiverVest's biopharmaceutical presence."
Dr. McKearn holds a Ph.D. in immunology from the University of Chicago anda B.S. in biology from Northern Illinois University. He currently serves as amember of the board of directors for IDM Pharma (formerly Epimmune) and forKeel Pharmaceuticals.
About RiverVest Venture Partners
RiverVest Venture Partners is a venture capital firm investing inpromising life sciences companies nationwide. RiverVest applies both itscapital and its team's diverse range of expertise to create and growsuccessful enterprises that address unmet medical needs in major markets.RiverVest's extensive national network and pri
