Imperial Innovations looks to managing third party funds

Imperial Innovations Group plc, the quoted technology management commercialisation founded by Imperial College London, has set up a wholly owned subsidiary with regulatory approval to manage third party funds.

The subsidiary, Imperial Innovations Investment Management Limited (IIIM), is authorised by the UK regulator, the Financial Services Authority.

Imperial Innovations is increasingly choosing to lead or co-lead investment rounds as its portfolio companies develop and raise capital from third party investors. The formation of IIIM is not only in keeping with best industry practice, it also enables the company to capture additional value through corporate finance fees.

In November 2007 Imperial Innovations raised £30 million in a placing, from which it says it will continue to make seed and later-stage investments, adding that the establishment of IIIM does not signal a shift towards managing third party funds, but that it may choose to do so where it is beneficial.

Non-regulated activities including the licensing of technology, the formation of spin out companies, the provision of proof of concept and pre-seed funding, incubation services, business planning and recruitment, will continue as before.

Susan Searle, Chief Executive of Imperial Innovations, said the FSA authorisation is a further step towards the goal of developing a fully integrated business model, in which Imperial Innovations nurtures early stage technology, creates new ventures, builds management teams and invests in proven technology.

“IIIM is a way of maximising the benefit to Imperial Innovations of the numerous funding rounds we engage in. We intend to continue to build on our relationships with quality venture capital and other private equity investors, building strong syndicates for our established portfolio companies.”