UK's Claret Capital raises €575m for European biotechs

London-based Claret Capital Partners has closed its fourth European Growth Capital Fund, raising €575 million ($668 million), which will be used to "back Europe's boldest innovators."

The new fund – which has overshot its expected tally of €500 million – is earmarked for companies operating in life sciences, tech, and other high-impact sectors and brings the total capital raised by the independent growth debt fund manager to €1.3 billion since it was set up in 2020.

The oversized fund is an encouraging sign for the European biotech sector, which is showing signs of recovery in venture financing after a challenging few years but is still trailing behind the US, which is capturing more than 60% of the global tally with around 14% to 20% raised in Europe.

Claret's managing partner David Bateman: "To have raised this amount not only validates our approach and track record but is also a massive vote of confidence for the European technology, life sciences and impact ecosystems."

Fund IV has already provided support for 27 companies, including France-based biotech Inventiva, which is developing an oral therapy for metabolic dysfunction-associated steatohepatitis (MASH) in phase 3, Swedish gastrointestinal drug developer Cinclus Pharma, and Swiss medtech group SIS Medical, which specialises in specialised devices for cardiovascular diseases.

Around a third of the new fund is already accounted for, and the company said investment activity "continues at pace with a robust pipeline of companies seeking flexible, low-dilution capital to accelerate their growth through strategies such as international expansion, strategic acquisitions and product innovation."

Other companies that have benefited from funding from the company of late include France's Carvolix, which is developing AI-driven mini-robots and biomimetic implants for interventional cardiology applications and the treatment of ischaemic stroke, and German startup Wellster, which is rolling out a physician-guided digital platform for evidence-based obesity treatment.

"It continues to be a true privilege to support the founders and entrepreneurs who are driving real innovation across Europe at a monumental time for both business and society," said Johan Kampe, managing partner at Claret.

"As equity markets remain more selective and founders look for ways to grow without unnecessary dilution, we expect demand for flexible, non-dilutive capital to keep accelerating – and Fund IV positions us to meet that demand at scale."

Claret said it will continue to expand its platform, increasing local presence across Europe's key innovation hubs, including new team members now based in Paris and, soon, in Berlin.