Healthcare-focused investment firm OrbiMed has received a Limited Partner (LP) commitment from Asian Development Bank (ADB) for its fourth Asia private equity fund that was launched last year.
ADB said in a statement that it has signed a $75 million (around Rs 550 crore) equity investment in OrbiMed Asia Partners IV, LP that will focus on India and China.
OrbiMed’s fourth Asia private equity fund seeks to raise $750 million (around Rs 5,565 crore), according to a filing with the US Securities and Exchange Commission (SEC) last year.
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.
ADB had invested in OrbiMed’s previous two Asia-focussed funds as well.
The latest statement said that OrbiMed aims to invest in 15-20 companies in biopharma, medical technology, healthcare services, diagnostics, and distribution spaces. Its investment ticket size per company will range from $10-50 million.
Janette Hall, director, ADB Private Sector Investment Funds and Special Initiatives Division, said that COVID-19 has underscored the need for higher healthcare capacity reserves and stimulated demand for healthcare services and products, as well as soft and hard healthcare infrastructure.
In India, OrbiMed has been silent on the investment front for more than a year.
The healthcare fund’s last known investment in the country was made in 2019 when it bet on enzymes maker Advanced Enzyme Technologies Ltd.
In 2018, it invested in Entero Healthcare Solutions Pvt. Ltd, a pharmaceutical company co-founded by a former chief executive at drugmaker Alkem Laboratories Ltd. 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 Suraksha Diagnostic, 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.
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