In an announcement, ADB said it approved the equity investment in OrbiMed Asia Partners IV (OAP IV), marking its third investment in the funds managed by the healthcare-focused investment house.
OAP IV has a target corpus of $750 million. As of September 2020, the fund already raised $487 million from 86 investors.
The fourth fund seeks to provide mainly growth capital to 15 to 20 healthcare companies across the biopharma, medical technology, healthcare services, diagnostic, and distribution subsectors in India and China.
According to ADB’s announcement, OAP IV’s investment sizes will typically range from $10 million to $50 million per company.
ADB’s investment in the healthcare-focused PE fund comes as the global pandemic has underscored the need for higher healthcare capacity reserves and stimulated demand for healthcare services and products.
“ADB’s investment in OAP IV is expected to be catalytic in developing effective solutions and responses to global healthcare crises by enhancing disease detection, treatment, and response capacities in the fund’s target markets,” said Janette Hall, ADB Private Sector Investment Funds and Special Initiatives Division director.
The investment is ADB’s third in an OrbiMed-managed healthcare fund. In 2014, the lender committed $60 million to OrbiMed Asia Partners II and another $60 million to OrbiMed Asia Partners III in 2017. Fund II raised $325 million in total commitments while Fund III closed at $551 million.
OrbiMed, which has about $18 billion in assets under management, has been investing for over 20 years globally in both early-stage private companies and large multinational corporations in the healthcare sector.
It invests through a range of private equity funds, public equity funds, and royalty/credit funds across markets.
Apart from New York City and San Francisco in the US, its offices in Asia are in Shanghai (China), Hong Kong, Mumbai (India), and Herzliya (Israel).
Established in 1989, the firm launched its office in China in 2007, months before the collapse of Lehman Brothers brought down the world’s financial system. It forayed into India in 2008 and subsequently to Israel in 2010.
In Asia, it recently backed the $150-million Series F funding round in Chinese fertility services provider Jinxin. The firm has invested in 28 biopharma and healthcare technology companies across China and India.