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Isomer Capital defies industry headwinds with an early first close of new €250m fund, Isomer Capital III

Press release 05 June 2023

Earlier-than-expected first close of Isomer Capital’s third flagship fund continues proven strategy of investing in Europe’s best venture capital funds and their breakout companies

  • Isomer Capital’s track record and reputation as a ‘partnership’ investor has enabled the firm’s third flagship fund to reach a substantial first close ahead of schedule, despite headwinds in the macro-environment.
  • Since inception, Isomer Capital has invested in more than 70 early-stage venture capital (VC) firms across Europe, gaining exposure to 29 unicorns to date, including the likes of Deliveroo, Tractable, Oyster in the UK, ManoMano, Sorare in France, Wefox in Germany, UiPath in Romania and Dune Analytics in Norway.
  • Isomer’s proven hybrid fund of funds strategy is one of the best ways for institutional investors to access the high potential of European technology venture capital, by supporting European entrepreneurs creating the technology products of tomorrow.
  • Isomer Capital has attracted investment from British Business Investments, the European Commission, and a range of endowments, pensions, corporates, and family offices from across Europe, Asia, and the United States.

Isomer Capital, the independent private investment firm focused exclusively on European venture capital (VC), has today announced the first close of its new €250m Isomer Capital III (IC III), with one third of its target subscribed by an early group of returning investors. The fund’s fast progress is a testament to its strategy, past performance and a strong base of supporters, as well as the resilience of the sector in the face of macroeconomic headwinds.

The fund’s first close was held four months earlier than originally planned, leveraging Isomer’s reputation and partnership model to quickly secure access to four early-stage VC firms that held their funds open to welcome Isomer into their own final closes.

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. Our team has built a strong brand and reputation as a ‘value-add’ limited partner (LP), and the swift progress of Isomer Capital III is a testament to their good work. 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. Joe Schorge Managing Partner at Isomer Capital

IC III continues the firm’s successful strategy of investing in Europe’s best emerging VC funds and growth companies, enabling investors to access some of the most competitive, exciting and high-potential young technology businesses across the UK and Europe. The fund follows the same strategy and sizing of its predecessor, IC II, which is performing well as its net asset value (NAV) continued increasing in Q4 2022 against macro headwinds, maintaining its ranking in the top 5% of its kind globally.

A commitment of up to €60m was made by British Business Investments, a commercial subsidiary of the British Business Bank. British Business Investments is a repeat and early investor in Isomer, having previously committed to Isomer II and Isomer Capital Opportunities in 2021. Alongside British Business Investments and the European Commission, Isomer Capital has attracted a range of endowments, pensions, corporates, and family offices from across Europe, Asia, and the United States. Investors include the likes of Fondaco, Happiness Capital, Italmobiliare, Nikon, PwC Germany, and one of the largest foundations in Germany and a well known US endowment.

As a pioneer of the VC ‘fund of funds’ model in Europe, with a track record of backing some of the best VCs and emerging managers across the continent, we will strive to continue delivering strong performance and consistent returns with Isomer III. Chris Wade Partner and co-founder of Isomer Capital
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. Judith Hartley CEO of British Business Investments

Since its inception, Isomer Capital has invested in over 70 VC funds, with groups like Atlantic Labs, Entrepreneur First, FRST, OpenOcean, OTB, and Seedcamp, as well as 31 co-investments and secondary transactions. This has enabled Isomer and its LPs to gain exposure to 29 unicorns (approximately 10% of Europe’s total number of unicorns).

Notes to editors

About Isomer Capital

Isomer Capital is a private investment firm focused exclusively on European venture capital. Isomer backs technology-enabled entrepreneurs across Europe through venture capital (VC) fund commitments, company co-investments, and providing liquidity through secondary purchase of funds and companies.

Isomer Capital offers efficient institutional access to European technology innovation by combining an entrepreneurial approach with portfolio management rigour. The firm seeks to generate strong returns while managing risk and delivering insight and access to its partners. Find out more at isomercapital.com.

About British Business Investments

British Business Investments Limited is a wholly owned commercial subsidiary of British Business Bank plc, the UK government’s economic development bank.  British Business Investments aims to earn a commercial return by investing – through finance providers – in smaller businesses and small mid-caps, pursuing investments on a fully commercial basis without receiving any economic advantage from the government. Find out more at bbinv.co.uk.

The Bank and its subsidiary entities are not banking institutions and do not operate as such.  They are not authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA). A complete legal structure chart for British Business Bank plc and its subsidiaries can be found on the British Business Bank plc website.

The transaction described above does not constitute or imply any endorsement, warranty or recommendation by the UK government, the British Business Bank plc or its subsidiaries or any other party in respect of Isomer Capital or its products or services.

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