A global private equity firm is looking to make direct equity investments into life science companies ranging from $5-25m, primarily in the USA and Europe, with the potential to invest in other areas if the right syndication opportunities are available. The firm typically makes 10 new direct investments per year across a diverse range of sectors, including healthcare IT, therapeutics and medical devices. The firm leads or co-leads financing rounds in about 60% of cases and takes a board seat in these instances, but on other occasions may syndicate with other investors and not take a board seat.
The firm prefers to invest in medical devices and therapeutics with the potential to become the standard of care in a large clinical area with unmet needs. Focus indications include oncology, immunology, cardiology, diabetes, neurology, infectious diseases, respiratory disorders, pain management and psychiatry. The firm prefers to invest in the later clinical stages (Phase II + III), but will consider opportunistic investments in earlier stage opportunities if the firm sees the potential for outsized risk-adjusted returns due to a market dislocation.
The firm also invests in healthcare IT companies that have a product already on the market and have attained revenue and customer adoption. These investments are in a variety of market segments, including enterprise software, clinical management software, connected devices/equipment and direct-to-consumer products.
In the therapeutic and medical device sectors, the firm seeks to invest in companies with unique intellectual property and with strong investor syndicates who can fund late-stage clinical trials to completion. In the healthcare IT sector, the firm prefers to invest in companies with at least $5m in revenue and strong, experienced management teams. The firm performs thorough due diligence, looking at factors such as historical performance, size of market opportunity, revenue per customer and customer stickiness in addition to vetting the product itself and the management team.
If you are interested in more information about this investor and other investors tracked by LSN, please email mandates@lifesciencenation.com
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