OrbiMed Secures $1.86 Billion for Healthcare Investment Fund Amid Challenging Biotech Market

OrbiMed, a leading healthcare investment firm, has successfully raised $1.86 billion for its fifth fund focused on growth-oriented healthcare companies. The significant capital raise comes at a time when the biotech equity market faces notable challenges, highlighting the continued appetite for strategic investments in the healthcare sector.

Fund Details and Investor Base

The OrbiMed Royalty and Credit Opportunities Fund V has attracted a diverse range of investors, including medical institutions, university endowments, foundations, pension funds, sovereign wealth funds, and family offices. Notably, over 90% of the new funding originates from existing, long-standing relationships, underscoring the firm's strong track record and investor confidence.

Matthew Rizzo, General Partner at OrbiMed, emphasized the fund's role in the current market landscape: "Our flexible, non-dilutive capital solutions can help our portfolio companies to grow and thrive despite these volatile market conditions. The OrbiMed platform is uniquely positioned to fund healthcare innovation and growth on a global basis."

Investment Strategy and Portfolio Focus

The newly raised fund is designed to provide tailored investment solutions to a broad spectrum of healthcare companies. These include:

• Biopharma firms
• Medical device companies
• Diagnostic companies
• Technology-enabled healthcare services

OrbiMed's investment approach focuses on offering non-dilutive credit and royalty-based financing, providing an alternative to traditional equity investments. This strategy is particularly relevant given the challenging equity markets for biotech and life sciences companies in recent years.

OrbiMed's Market Position and Recent Investments

With a portfolio spanning 134 biopharma companies, OrbiMed maintains a significant presence in the healthcare investment landscape. Recent investments by the firm include:

• A $54.5 million seed financing for Renasant Bio, a kidney disease-focused company, in July 2025
• Participation in a $75 million private placement of shares for Verastem Oncology in April 2025

These investments demonstrate OrbiMed's continued commitment to funding innovative healthcare solutions across various therapeutic areas and stages of development.