Catalio Capital Management Closes $400M Fund, Launches New Biotech Ventures

Catalio Capital Management, a leading healthcare investor, has closed its fourth venture fund, Nexus Fund IV, with over $400 million in capital. The fund aims to capitalize on what the firm describes as a "historic buyer's market in biotech," and has already made 16 investments across various sectors of the pharmaceutical and biotechnology industries.

New Company Launches and Strategic Investments

Catalio's latest fund has been instrumental in launching two new biotech companies focused on immunology and inflammation. Rhapsogen, co-founded by Catalio Venture Partner Jeffrey Ravetch, M.D., Ph.D., will leverage research from Rockefeller University on antibody-Fc receptor interactions. The second company, temporarily named TBD Pharma, is co-founded by Bert Vogelstein, M.D., another Catalio venture partner, and will build on cancer research from Johns Hopkins University.

In addition to these new ventures, Nexus Fund IV has participated in several high-profile financing rounds:

• A $120 million Series A for Superluminal Medicines, an AI-based drug discovery company targeting G protein-coupled receptors.
• Alentis Therapeutics' $180 million Series D round to advance its pipeline of antibody-drug conjugates.
• Imperative Care's Series E financing, capitalizing on attractive valuations in late-stage companies.
• A $40 million Series A co-lead for PinkDx, a women's health diagnostics company focusing on gynecological cancers.

Market Strategy and Investor Outlook

Olga Maltseva, Catalio partner and head of operations, emphasized the fund's strategic positioning: "These new funds will allow Catalio to continue taking advantage of opportunities in a historic buyer's market in biotech, and to keep distinguishing ourselves as a leading innovative healthcare investor around the globe."

Dr. Diamantis Xylas, Catalio partner and head of research, highlighted the fund's investment philosophy: "We continue to see many compelling investment opportunities in this current market, including deals with prospects for near-term liquidity and deals with prospects for long-term growth. We are proud to invest in breakthrough biomedical technology companies developing drugs, devices, diagnostics and tools that have potential for broad clinical impact and can enhance the lives of millions of patients around the world while delivering meaningful returns for our investors."

Since its inception in 2020, Catalio has backed more than 80 private companies through its Nexus funds. The rapid growth of these funds—from $15 million in the first iteration to $100 million in the second, $381 million in the third, and now over $400 million in the fourth—underscores the firm's expanding influence in the biotech investment landscape.