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Print Edition StoriesWednesday, November 25, 2009
Highland Capital a bit wary of biotechs
Funding drugs for rare diseases
MHT's Julie Donnelly: Life science startups finding investments
With a $400 million fund closed this month, Lexington-based Highland Capital Partners is betting that fewer companies will launch in the coming three years, and fewer billion-dollar companies will be founded. But general partner Bob Higgins told the Boston Business Journal that he believes in a post-recessionary climate, the few great ones will have much bigger opportunities.
The $400 million fund is half the size of Highland’s last fund, closed in 2006. “We just think it’s going to be a little bit of a slower time. Fewer really world-class companies will be started in this immediate post-recession period, so we don’t want to have too much capital,” Higgins said.
Higgins said Highland will cut its number of deals, its average deal size, and the duration of its eighth fund. One area where Highland has grown more wary is biotech, said Higgins, who invests in health care companies. “I’d just as soon not state that we’re going to do less in biotech, but the capital efficiency in biotech is in question,” said Higgins.
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