OrbiMed Advisors targeting $500m for second Asia healthcare fund


healthcaresq_lrg1Healthcare-focused investment firm OrbiMed Advisors is reaffirming its interest in the Asian market by planning a $500m fund targeting the region.

The new fund will be almost three-times the size of its $188m debut Asian healthcare vehicle from 2008 according to Reuters, which said the firm planned to launch OrbiMed Asia Partners II towards the end of the year.

OrbiMed founder and managing partner Samuel Isaly told Reuters up to 65 per cent of the fund could be invested in India, adding that it was looking to make about ten to 12 transactions.

Isaly, who manages about $6.5bn in healthcare assets worldwide, said he was confident of generating annual returns of more than 20 per cent on investments in the new fund.

OrbiMed raised a $600m fund, Royal Opportunities, in 2011 to target healthcare royalty streams and provide structured debt capital to healthcare companies.

Royalty team managing director Tadd Wessel said, “Life sciences companies are typically dependent on equity markets to raise new capital.

“With this fund, OrbiMed can offer a minimally dilutive capital alternative to fund product launches, M&A opportunities, new product research, and general corporate purposes.”

Three months ago OrbiMed  led a $37.3m Series B equity financing round for CardiAQ Valve Technologies, a medical device company developing technologies for percutaneous mitral heart valve replacement.

OrbiMed was joined by Versant Ventures, Advent Life Sciences and existing investors.

Copyright © 2013 AltAssets