OrbiMed has successfully raised $1.86 billion for its fifth fund focused on providing credit and royalty-based financing to healthcare companies, despite the challenging market conditions.
Why it matters: The successful fundraising effort highlights the continued interest in supporting innovative healthcare companies, even amidst volatile equity markets for biotech and life sciences firms.
The details:
- The OrbiMed Royalty and Credit Opportunities Fund V will invest in biopharmaceutical companies, medical device companies, diagnostic firms, and technology-enabled healthcare services.
- More than 90% of the new funding comes from existing, long-standing relationships with investors, including medical institutions, university endowments, foundations, pension funds, sovereign wealth funds, and family offices.
- The fund aims to provide tailored, non-dilutive capital solutions to help portfolio companies grow and thrive despite volatile market conditions.
OrbiMed, a New York-based firm, manages $17 billion in assets and employs 145 professionals globally, including in the US, UK, and China. The firm’s website lists 134 biopharma companies it has invested in, with recent investments including funding for kidney disease-focused Renasant Bio and the purchase of shares for Verastem Oncology.
What they’re saying:
- “Our flexible, non-dilutive capital solutions can help our portfolio companies to grow and thrive despite these volatile market conditions,” said OrbiMed General Partner Matthew Rizzo.
- “The OrbiMed platform is uniquely positioned to fund healthcare innovation and growth on a global basis,” Rizzo added.
The bigger picture: Despite the challenging market, some investors continue to gather substantial funds to support deserving drug developers. Last week, Frazier Life Sciences gathered $1.3 billion in capital commitments for its fund aimed at private, early-stage biotechs.
What’s next: The successful fundraising effort positions OrbiMed to back promising healthcare enterprises, providing them with the necessary financial resources to drive advancements and ensure sustainability in a rapidly evolving market.