Biotech backer OrbiMed has raised $1.86 billion in commitments for its fifth fund aimed at “growth-oriented healthcare companies.”
The OrbiMed Royalty and Credit Opportunities Fund V attracted a range of investors spanning medical institutions, university endowments, foundations, pension funds, sovereign wealth funds and family offices, according to an August 4 release. More than 90% of the new pot of funding comes from “existing, long-standing relationships," the New York-based firm explained.
The fund is designed to provide “tailored investment solutions” like non-dilutive credit and royalty-based financing to biopharmas, medical device companies, diagnostic companies and technology-enabled healthcare services, according to the release.
OrbiMed General Partner Matthew Rizzo placed the latest fund in the context of the “challenging” equity markets for biotech and life sciences companies in recent years.
“Our flexible, non-dilutive capital solutions can help our portfolio companies to grow and thrive despite these volatile market conditions,” Rizzo said in a statement. “The OrbiMed platform is uniquely positioned to fund healthcare innovation and growth on a global basis.”
OrbiMed’s website lists 134 biopharma companies across the firm’s portfolio. Recent investments the firm has participated in include the $54.5 million seed financing for kidney disease-focused Renasant Bio last month and the $75 million private placement of shares for Verastem Oncology in April.
It may be a tough market, but certain investors are still managing to gather significant funds to channel toward deserving drug developers. Last week, Frazier Life Sciences gathered $1.3 billion in capital commitments for its 12th venture fund aimed at private, early-stage biotechs.