Xeraya, Spruce in $150m first close on second life sciences fund
Khazanah Nasional-controlled Xeraya Capital and Spruce Capital Partners have reached a first close of $150 million on MLS Capital Fund II, successor to the vintage Malaysian Life Sciences Capital Fund, which is now fully allocated.
LPs include institutional and global corporate investors. The first fund, which reached a final close of $162 million in 2006, received a $41 million contribution from the Malaysian government, with the rest coming from financial institutions, government agencies and local and foreign private investors.
Fund II will build a diversified portfolio of "biogreentech" companies at all stages of development. Its remit spans plant and animal agriculture; food, feed and nutrition; bio-renewable chemicals and materials; and related opportunities in big data analytics, robotics, production, harvesting and use of natural resources.
Portfolio companies will receive assistance in expanding into target markets in Asia and the Americas. While Xeraya offers life sciences expertise in Asia from its base in Malaysia, Spruce is headquartered in San Francisco. The first fund was formed by the Malaysian Technology Development Corporation and US-based Burrill & Co. Several members of the Burrill team set up Spruce in 2013 and took on the GP role.
"MLS Capital Fund I builds upon the accomplishments of Malaysian Life Sciences Capital Fund, and enables us to continue propagating global innovation and participate in a unique way within the biogreentech sector," said Fares Zahir, CEO of Xeraya in a statement. "The partnership of leading financial and industrial houses in MLS Capital Fund I is a testament to our commitment to sponsor and grow innovation-led businesses."
Fund I portfolio companies include LanzaTech, a New Zealand-based low-carbon fuels producer that received $120 million across two rounds of funding last year.
It has also backed seed producer Chromatim, carbon dioxide recovery specialist Akermin, biomass players Mascoma and Segetic, drug developers Sentinext and Light Sciences Technology, bio-chemicals firms Cobalt, Codexis, and Evolva, and Glori Energy, which has a technology for recovering trapped oil from existing reservoirs.
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