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OrbiMed floats fourth Asia healthcare PE fund
Photo Credit: VCCircle

Healthcare-focused investment firm OrbiMed has launched its fourth Asia private equity fund, which is larger than its previous funds.

OrbiMed Asia Partners IV, LP aims to raise $750 million (around Rs 5,565 crore) for its new Asia fund, according to a filing with the US Securities and Exchange Commission (SEC). It did not disclose further details.

OrbiMed had received about $551 million in capital commitments for its third fund, it had said in September 2017.  

Its second fund closed in 2014 after raising $325 million, lower than its initial target of over $500 million. Its first healthcare fund had raised $185 million.

OrbiMed's previous Asia funds invested across the healthcare industry in the region, with a focus on growth-stage product- and services-oriented companies in China and India.

Its third fund had sought to invest $10-75 million each in 15 to 20 companies and co-invest with OrbiMed’s global team, enabling substantially larger investments.

In India, OrbiMed's latest investment was made a year ago when it bet on enzymes maker Advanced Enzyme Technologies Ltd.

In 2018, it had invested in Entero Healthcare Solutions Pvt. Ltd, a pharmaceutical company co-founded by a former chief executive at drugmaker Alkem Laboratories Ltd as reported by VCCircle. It also invested $42.5 million (Rs 276.7 crore) in the bulk-drugs unit of Vivimed Labs Ltd that year.

OrbiMed’s other portfolio companies in India include diagnostics firm Suraksha Diagnostic, dental products company Laxmi Dental Export Pvt. Ltd, pharmaceuticals firm Eurolife Healthcare and hospital chain Kerala Institute of Medical Sciences.

In June 2018, OrbiMed exited Surya Children’s Medicare Pvt. Ltd after mid-market private equity firm SeaLink Capital Partners came in as a new investor in the mother- and child-care company.

Other healthcare funds

There are not many healthcare-focused PE firms in India. The prominent ones include Quadria Capital, InvAscent, Asian Healthcare Fund, and Somerset Health Capital Advisors.

Last week, Quadria Capital marked the final close of its second healthcare-focused fund at $595 million, overshooting its initial target to raise $400 million.

InvAscent hit the final close of its third fund at $250 million in January last year. 

Somerset is also raising a new fund while Asian Healthcare Fund recapitalised its debut fund in 2018 to invest in existing portfolio firms.

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