#United States #Delaware #Venture Capital #Chapter 11 #Apple Tree Partners

Apple Tree Partners Initiates Chapter 11 Proceedings

On December 9, 2025, Apple Tree Partners (ATP), a prominent venture capital firm specializing in life sciences, took significant steps to secure its future by filing voluntary petitions for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware. This strategic move aims to implement a comprehensive restructuring plan that ensures the continued operation of ATP's portfolio companies, which are focused on developing groundbreaking treatments for serious diseases such as cancer, neurological disorders, and infectious diseases.

Since its founding over 25 years ago, Apple Tree Partners has established itself as a leader in the life sciences investment landscape, boasting a substantial track record. The firm has delivered an industry-leading Distributed Partner Investment (DPI) of 1x on a total of $2.5 billion. Notably, ATP I, its first fund, ranks as the second-highest returning fund globally for its respective vintage year, which was 1999. Furthermore, ATP's most recent fund, ATP Life Science Ventures, has showcased exceptional performance, achieving a net Total Value to Paid-In (TVPI) ratio of 2.7x over the past 12 years with a net DPI of 1.0x.

According to Seth Harrison, M.D., the founder and Managing Partner of ATP, this restructuring process is essential to serve the best interests of limited partners, the portfolio companies, and ultimately the patients who benefit from the innovative treatments these companies aim to deliver. Harrison stated, “We undertake this restructuring to serve the best interests of our limited partners, our portfolio companies, their employees and founders, the healthcare professionals who partner with us, and ultimately, the patients who stand to benefit from everyone’s invention.” He emphasized confidence in the strength of their investments, asserting that the portfolio companies show promise for substantial returns on investment and the provision of significant medical breakthroughs.

Throughout this restructuring period, ATP and its affiliates will continue to function and pursue their critical mission. To assist with the reorganization process, ATP has brought on B. Riley as financial and restructuring advisors, appointing Perry Mandarino, Senior Managing Director, as the Chief Restructuring Officer. Additionally, legal counsel for the bankruptcy proceedings has been secured with the involvement of Quinn Emanuel Urquhart & Sullivan, LLP, and Potter, Anderson & Corroon LLP.

Apple Tree Partners' commitment to nurturing viable startups within the life sciences sector remains unwavering. By investing in companies from pre-IPO ideas to asset spinouts and providing access to an elite network of venture partners and Entrepreneurs in Residence (EIRs), ATP aims to facilitate the development of sustainable enterprises that contribute positively to global health.

If you want to learn more about Apple Tree Partners and the work they do within the life sciences arena, please visit www.appletreepartners.com. Their ongoing efforts to restructure signal a proactive approach to addressing the challenges posed by the current economic landscape while remaining dedicated to advancing medical innovation.

In conclusion, the initiation of Chapter 11 proceedings marks a pivotal moment for Apple Tree Partners, as they embark on a journey of reorganization aimed at achieving long-term success and continued contributions to the field of medical research and development.