Investment firm OrbiMed raises a substantial sum of $1.86bn for initiatives involving royalties and credits in their strategic approach.
In the rapidly evolving world of healthcare, OrbiMed, a leading investment firm, has announced the launch of its latest credit opportunities fund, the OrbiMed Royalty and Credit Opportunities Fund V. The fund has managed to raise an impressive $1.86bn in capital.
Thematic investing in private markets, particularly in healthcare, has been gaining significant attention recently. This trend is expected to continue, with a strong focus on the convergence of healthcare and technology, especially digital health and healthtech innovations. According to industry reports, this theme is projected to attract nearly half of global limited partner allocations in 2025 due to its potential for long-duration growth, economic defensibility, and impact[1].
OrbiMed's new fund will provide credit and royalty-based financing to healthcare companies across various sectors, including biopharmaceuticals, medical devices, diagnostics, and tech-enabled services. The fund's capital will be used to help portfolio companies grow and thrive despite challenging equity markets.
Matthew Rizzo, OrbiMed's general partner, stated that the fund's flexible, non-dilutive capital solutions can help portfolio companies grow and thrive despite volatile market conditions.
Niche private credit funds, like OrbiMed's, must emphasize portfolio flexibility and efficient capital deployment amid policy uncertainty and economic headwinds[2]. These funds tend to operate in specialized sub-sectors or tailored strategies to capture opportunities in healthcare innovation while navigating policy risks.
Large private equity firms, on the other hand, bring not only capital but substantial operational expertise, scalability, data analytics, and industry know-how, which enable them to add significant value beyond financing[3]. Although niche private credit funds may find unique pockets of opportunity and potentially achieve differentiated returns by focusing on under-served or specialized areas within healthcare, big players generally maintain competitive advantages through scale, scope, and access to resources.
OrbiMed, with its global team of 145 professionals located in the US, UK, and China, is well-positioned to navigate this competitive landscape. The firm has $17bn in assets under management overall.
The fund's capital for the OrbiMed Royalty and Credit Opportunities Fund V primarily comes from existing limited partners, such as medical institutions, university endowments, and family offices. A report from BNP Paribas found that allocation to investors deploying thematic strategies has been increasing.
JP Morgan predicts that variation in private credit manager performance will increase. However, OrbiMed's focus on providing capital to healthcare companies, specifically in the biotech and life sciences sectors, positions it well for potential success.
This environment reflects a structural shift emphasizing innovation, data-driven value creation, and tactical adaptation in healthcare private investments for 2025[1][3][4]. OrbiMed's new fund is a testament to this shift, aiming to capitalize on challenges facing big players in the healthcare industry while providing flexible, non-dilutive capital solutions to healthcare companies.
Science and health-and-wellness sectors could witness a surge in investments, given the focus on the convergence of these fields, particularly digital health and healthtech innovations, which are projected to attract a substantial portion of global limited partner allocations by 2025. In this rapidly evolving landscape, OrbiMed's new fund, the OrbiMed Royalty and Credit Opportunities Fund V, is not only investing but also offering flexible, non-dilutive capital solutions, initially securing $1.86bn in capital, to help healthcare companies thrive amid market volatility, which could be a boon for science and finance, including the investing and business aspects.
