Hot Life Science Investor Mandate 3: PE Group with Dry Powder Seeks Wide Range of Life Science Opportunities

26 Jul

A private equity group with offices worldwide is currently deploying assets from its seventh fund, which closed at nearly $400 million, bringing the firm’s total assets under management to over $1 billion. With that being said, the firm has been very actively seeking and investing in new companies in the life sciences space, and still has a great deal of dry powder on hand from its seventh fund. The firm made 3-4 new investments within the last two months, and anticipates that the group will be investing at around the same pace in 2013 if they continue to source compelling opportunities in the space and also expects that their current fund’s portfolio will consist of around 18-20 companies in total. The firm typically allocates around $5-15 million, but has written tickets ranging from $2-40 million in the past.

The firm is interested in biotech firms creating therapeutics, medical technology companies that develop medical devices, as well as specialty pharmaceutical companies. The firm is especially interested in medical device companies that are creating ophthalmology or instrumental neurology products. In the biotech therapeutics and diagnostics space, the firm is opportunistic in terms the indication the product that a firm is targeting, however is especially interested in firms that are developing drugs for the treatment of orphan diseases.

The firm plans to allocate two-thirds of the group’s seventh fund to US based firms and one-third to firms located in China. In China, they provide firms with growth capital while in the US the firm has more of a venture capital approach to investments. Accordingly, the firm invests in earlier stage pre-revenue companies in the US and later stage companies in China that are generating revenue. With that being said, the firm is looking for US biotech companies whose products are in early stage phase II of clinical trials or later, and in the medtech space the firm’s product must be undergoing clinical trials to be considered.

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