Gilde’s Latest Venture Fund Guided By Health Care Cost-Cutting
This article was originally published in The Pink Sheet Daily
The European VC closed a €145 million ($200 million) transatlantic growth fund to capitalize on health care advancements that provide better care at lower cost.
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The committed capital is nearly half what the 40-year-old firm raised from its previous vehicle and its sidecar in 2007–2008, but it's a huge sum compared with what most life science VCs can drum up these days.
The largest dedicated health care investor has closed a huge new fund, which came almost entirely from existing investors. OrbiMed isn’t the only firm capitalizing on the robust biotech IPO market. A few VCs are starting to take gains from IPO winners through secondary offerings.
Biopharma offers the best PE returns of any health care sector, but represents only about a third of private equity investment in health care as investors remain wary of high-risk R&D and tend to focus on easier targets, which are in limited supply. As the low-hanging fruit disappears, PE investors are looking at new approaches beyond outright purchases and sorting out opportunities in emerging markets.