Global healthcare venture fund OrbiMed announced it raised $1.86 billion for Healthcare Royalty and Credit Fund V to invest in growth-oriented companies.
WHAT IT DOES
OrbiMed is a venture fund that invests in businesses from the seed stage to large publicly traded companies in biopharmaceuticals, medical devices, diagnostics and technology-enabled healthcare services.
Its portfolio consists of Carrot Fertility, DarioHealth, Insilico, health-data company MDClone, TandemAI and TytoCare.
Investors in the new fund include medical institutions, university endowments, foundations, pension funds, sovereign wealth funds and family offices.
The company will use the funds to provide tailored investment offerings to growth-oriented healthcare companies, with a focus on non-dilutive credit and royalty-based financing.
In a statement, OrbiMed said it anticipates partnering with healthcare companies in a variety of sectors, such as biopharmaceuticals, medical devices, diagnostics and technology-driven healthcare services.
"Equity markets have been challenging in recent years for biotech and life sciences companies," OrbiMed general partner Matthew Rizzo said in a statement.
"Our flexible, non-dilutive capital solutions can help our portfolio companies to grow and thrive despite these volatile market conditions. The OrbiMed platform is uniquely positioned to fund healthcare innovation and growth on a global basis."
OrbiMed managing partner Carter Neild noted that mpre than 90% of Fund V's committed capital comes from existing, long-established relationships.
"We are grateful for this support and will endeavor to deliver exceptional results to our partners," Neild said in a statement.
MARKET SNAPSHOT
In 2023, OrbiMed raised more than $4.3 billion in commitments for its private investment funds – OrbiMed Asia Partners V, OrbiMed Royalty and Credit Opportunities IV and OrbiMed Private Investments IX.
OrbiMed used the funds to invest in seed-stage startups via growth capital opportunities.
