AAA Fidelity primes restructured venture capital unit

Fidelity primes restructured venture capital unit

Fidelity Biosciences, an investment subsidiary of financial services conglomerate Fidelity Investments, agreed yesterday to merge with the technology fund run by private equity firm Devonshire Investors to form a new entity called F-Prime Capital.

Devonshire is a subsidiary of FMR, the parent company of Fidelity Investments. F-Prime will unite the two firms and continue their focus on companies operating in the life sciences, healthcare and technology sectors.

The various teams making up the new entity were previously spread across five different funds, having jointly contributed capital to more than 89 businesses over the past 15 years.

Stephen Knight, managing partner of F-Prime Capital, said: “While our venture teams retain a strong cultural bond with Fidelity Investments, we are introducing a new name to both reflect our increased market presence and to clarify our mission as a venture capital investor in private companies apart from Fidelity Investments’ mutual fund business.”

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