ADB invests $75m in OrbiMed’s fourth Asia-focused healthcare PE fund

Asian Development Bank (ADB) has committed $75 million to the fourth Asia-focused healthcare fund of US-headquartered investment firm OrbiMed.

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.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.