New York-based investment management firm OrbiMed Advisors has closed a new $600 million healthcare fund.
The Luxembourg-domiciled Royal Opportunities fund will invest worldwide in healthcare royalty streams and provide structured debt capital to healthcare companies. Investors in the fund include endowments, foundations and financial institutions.
OrbiMed has tapped three partners—Samuel D. Isaly, Sven H. Borho and W. Carter Neild—along with a dedicated team of four to oversee the fund.
“Life sciences companies are typically dependent on equity markets to raise new capital,” said Tadd Wessel, a managing director on the Royalty Opportunities team. “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.”
OrbiMed, which focuses exclusively on the healthcare sector, has over $5 billion in assets under management. The firm employs over 50 professionals in offices in New York, San Francisco, Shanghai, Mumbai and Israel.