OrbiMed said this week it closed its 3rd Asian-focused healthcare private equity fund, having raised approximately $551 million in capital commitments.
The new fund, the Asia Partners III, is slated to invest “broadly across the Asian healthcare industry,” focusing on growth stage product and services-oriented companies in China and India, according to the investment firm.
“This new, larger fund reflects our enthusiasm for the investment opportunities in China and India, which have healthcare market growth rates far superior to most developed countries,” general partner Carter Neild said in a prepared statement.
“With over half of the world’s patient population, the demand for quality healthcare in Asia still greatly exceeds supply. China’s healthcare market is not only growing rapidly, but also becoming a leading center of innovation, and is increasingly integrated with the rest of the world, especially the U.S.,” senior managing director Jonathan Wang said in a press release.
OrbiMed said the new fund will aim for investments between $10 and $75 million per company, looking to invest in 15 to 20 businesses. The firm said it may also co-invest with its global team for more substantial investments.
“With India still spending less than 5% of its GDP on healthcare and boasting the fastest growth rate of all major economies, we see compelling opportunities for investments across healthcare services, pharmaceuticals, and diagnostics,” senior managing director & India team lead Dr. Sunny Sharma said in prepared remarks.
“OrbiMed now has over $2 billion invested in Asian healthcare companies, positioning our team as a strong partner for entrepreneurs, institutions and companiesseeking to shape the future of Asia’s healthcare markets,” senior managing director Dr. David Wang said in a prepared release.
In December 2015, Orbimed said it closed a venture capital fund worth $950 million that it planned to deploy on about 30 companies in the medical device, biopharmaceutical, diagnostics and healthcare IT markets