Deerfield raises $2.4bn for medical debt fund

The investment firm specialising in healthcare companies nearly hit its $2.5bn fundraising target. 

Deerfield Management has raised $2.4 billion for its Deerfield Private Design Fund IV from over 200 investors, nearly reaching its original $2.5 billion target, according to a US Securities and Exchange Commission filing.

The New York-based firm’s latest fund will target royalty financing opportunities in healthcare sectors in North America. A representative from the company was not immediately available to comment on the fundraise.

According to Private Debt Investor data, the firm held a final close of Deerfield Private Design Fund III at its target of $1.6 billion in April 2014. That vehicle included commitments from the Stuart Foundation and $30 million each from University of Michigan and University of Washington. Investments out of the fund included a $20 million commitment to Editas Medicine, which develops genome-editing technology, and a $60 million credit facility with KemPharm.

Launched in 1994, Deerfield invests in public and private healthcare companies with no restrictions on the size of the company, according to its website. Deerfield now manages funds in excess of $7 billion in assets.

Some of Deerfield’s largest debt deals to healthcare companies over the last couple years include a $375 million investment in March 2015 to pharmaceutical company Depomed to aid in the acquisition of rights to a pain medication from Janssen Pharmaceuticals.  Also included was a $250 million acquisition loan to Horizon Pharma to buy Vidara Therapeutics International in March 2014 and a $120 million senior secured loan to SHINE Medical Technologies in October 2014.