Due diligence

Context: A consortium of worldwide life science venture capital and sovereign wealth fund investors were evaluating a $150m funding round for a cell based gene therapy for the treatment of a number of monogenic diseases. There was substantial heterogeneity in the familiarity of all investors with this novel therapeutic platform, and concern pertaining to the financial feasibility of the therapy due to its autologous (patient specific) business model.

Solution: IPAV conducted interviews with all consortium members to understand their skill-sets and queries. These were then collated into a single resource for agreement amongst the group. Thereafter, IPAV sought responses to the questions raised from the target company and a world-leading advisory board, cross-corroborating their responses. This was complemented by the delivery of basic online technical training to ensure that all potential investors possessed a minimum level of technical understanding to objectively evaluate the investment and ensure effective communication amongst all parties.

Outcome: The final dossier recommended that an investment should be made; but subject to a number of technical and financial milestones, that neither the investee nor investors would have determined without IPAV’s co-ordination of the due diligence process – and in particular, the views of the appointed advisory board. The robust communication established and training provided has supported the consortium since making multiple other investments, with IPAV retained trusted advisors and potentially co-investors.