Growth equity firm focused on revenue-generating services businesses that play an increasingly critical role in bringing new medicines to patients
BOULDER, Colo., May 13, 2024 — NewVale Capital LLC (“NewVale”), a Boulder-based growth equity firm focused on investments in the services architecture underpinning the life science industry, today announced the final close of its inaugural fund. The oversubscribed $167 million fund will accelerate the growth of proven pharmaceutical services companies that play an essential role in bringing medicines to patients.
NewVale invests in services, software, and technologies – the infrastructure of life sciences – that have a proven return on investment for pharmaceutical customers, helping to accelerate timelines, reduce costs and improve quality. With nearly $200 million1 total under management, the firm makes investments of between $10 and $50 million in growth companies across the continuum of the pharmaceutical value chain, including discovery, clinical, manufacturing, regulatory and commercialization. The NewVale team comprises veteran life science investors, company builders and pharmaceutical executives who bring decades of experience in the global pharmaceutical industry.
Todd Holmes, Founder and Managing Partner of NewVale, commented: “While the science behind novel therapeutics has never been more promising, the pharmaceutical industry is undergoing a major evolutionary shift. To contend with its own rapid growth and formidable external pressures, the industry has been remodeling itself in ways that will make it sustainable for the decades ahead. In its evolution, biopharma has quietly become reliant on a vast and complex system of outsourced services that few have focused on, a system that now draws more than half of all dollars invested in biopharma.”
The fund has completed three initial investments:
- Aizon – NewVale led a $20 million growth financing to expand the availability of Aizon’s machine learning software, which has been proven to cost-effectively increase productivity and reduce batch errors in the pharmaceutical manufacturing process.
- Argonaut Manufacturing Services – NewVale led a $45 million growth financing to meet the need for high-quality clinical and commercial sterile fill/finish capabilities of small- and medium-sized biopharmaceutical companies.
- Beaconcure – NewVale led a $14 million growth financing to provide the pharmaceutical and contract research industry with a novel software platform that reduces the time and cost of the biostatistical validation process across all clinical trials.
Mr. Holmes continued, “We are thrilled to launch an independent growth equity fund committed exclusively to the services companies that help deliver much-needed therapies to patients. With our capacity to provide ample capital, our heritage as company builders and our expansive networks across the pharmaceutical industry, we’ve designed NewVale to be a valued partner for management teams looking to accelerate their growth.”
In under nine months, NewVale surpassed its target raise and initial hard cap with capital commitments from institutional limited partners across university endowments, foundations, insurance companies, fund of funds and family offices, alongside recognized pharmaceutical executives and investors.
Strathmore Group LLC served as exclusive placement agent for NewVale and Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C., provided legal counsel in connection with the fundraising.
About NewVale Capital
Founded in 2022, NewVale Capital is a growth equity investment firm focused on supporting the services architecture underpinning the life science industry. The firm invests in proven, revenue-generating services businesses across the life science ecosystem that are helping to bring the next generation of medicines to patients. For more information, visit: www.newvalecapital.com.
1 Includes co-investment special purpose vehicles managed by NewVale Capital
SOURCE NewVale Capital
