Driving return and impact: Inside The NLC Health Impact Fund’s vision and strategy

In conversation with Hidde ten Brink, Investment Director at NLC Health Ventures, we explore the vision behind the new NLC’s newest flagship fund, The NLC Health Impact Fund. With over 50 investments made and more to come, this SFDR Article 9 compliant fund is designed to foster financial returns and to drive meaningful societal change and is transforming the health innovation landscape by providing investors access to a highly diversified, impact-driven portfolio. 

Can you explain the vision and purpose behind The NLC Health Impact Fund? 

Hidde ten Brink: The NLC Health Impact Fund is designed with both our ventures and investors in mind. Our earlier funds laid the groundwork. We had developed a model that could simultaneously satisfy three critical needs—our ventures seeking capital, investors looking for diversified opportunities, and patients waiting for healthcare innovations. And as NLC's portfolio grew and matured, we saw an opportunity—and a need—to think even bigger. The NLC Health Impact Fund represents this next step, aiming to support 80-90 companies. 

With other impact funds on the market, what makes The NLC Health Impact Fund stand out in its approach to healthcare impact and financial return? 

Hidde ten Brink: What sets us apart is our dual position as both a venture builder and fund manager, creating a mutually beneficial ecosystem that strengthens both sides. For the fund, this means 'captive deal flow' plus access to Europe's largest independent innovation team, enabling us to both identify promising pre-vetted opportunities and derisk them through hands-on venture support. This team plays a critical role in supporting the development of our ventures, providing expertise and resources that help address key challenges and derisk the fund's investments. For the ventures, the fund provides crucial early-stage capital to get them off the ground quickly. 

How do you identify and select ventures for investment, and how does this strategy help maximize both impact and returns? 

Hidde ten Brink: Our investment selection process leverages one of our greatest strengths: the deep healthcare expertise within NLC's venture building team. Our in-house healthcare specialists, each focusing on different domains like digital health, medical technology, and biotech, play a crucial role in identifying and evaluating potential investments. This means every investment decision benefits from years of hands-on experience in bringing healthcare innovations to market and delivering tangible societal impact.

Importantly, we maintain a strong focus on portfolio diversification, which is essential for managing the inherent risks of early-stage healthcare investing. We monitor our exposure across different healthcare sectors, geographic regions, and stages of company development. For example, if we see we are becoming heavily weighted in cardiovascular technologies, we will actively seek opportunities in other areas to maintain balance. 

The NLC Health Impact Fund is SFDR Article 9 compliant. What does that mean for investors?

Hidde ten Brink: Compliance with SFDR Article 9 essentially means that the fund is recognized for its commitment to measurable impact. We have a rigorous impact framework that allows us to track and report the social benefits of each venture. This goes beyond financial returns to include metrics like patient lives impacted, reduced pressure on healthcare workers, and broader societal benefits.

For some investors, this is a critical reason to invest with us; they want to see real, quantifiable change in healthcare outcomes. Others may prioritize financial returns but appreciate that their investment is making a positive impact. The NLC Health Impact Fund caters well to both perspectives. In fact, we believe that generating impact does not hinder financial performance—rather, it strengthens it.

Who has already invested in the fund?

Hidde ten Brink: We have attracted a diverse investor base including private investors, family offices, and institutional investors like the Dutch government and mr. Roelsefonds. We've also gained international interest, with Saudi Arabia's HMG private hospital chain joining our investors.

What’s next for The NLC Health Impact Fund and for NLC’s impact-oriented mission?

Hidde ten Brink: Right now, our entire focus is on maximizing the potential of The NLC Health Impact Fund as we approach the fund’s final February closing. We have a strong pipeline of innovative healthcare ventures ready for investment, making this an ideal time for those interested in joining the fund’s mission. By supporting ventures that address critical health challenges, we are creating value that benefits both society and our investors. We believe that impactful health innovations and financial growth go hand in hand, and The NLC Health Impact Fund is structured to provide both.

Through The NLC Health Impact Fund, investors are not just investing in companies; it's investing in the future of healthcare. For investors, this means an opportunity to participate in a portfolio that's diversified, impact-driven, and focused on one of the most crucial sectors in our economy.

‍