OrbiMed targets $1.2bn for new credit vehicle

The healthcare-focused lender provides both debt and equity strategies to life science companies worldwide.

OrbiMed Advisors is back in market with its latest royalty and credit fund.

The New York-based firm launched OrbiMed Royalty and Credit Opportunities Fund III on 29 January, according to documents filed with the Securities and Exchange Commission. The fund is targeting $1.2 billion, the documents stated.

The firm declined to comment.

OrbiMed focuses on investing in life science companies located throughout Asia, Europe, the US and the Middle East. It invests through private and public equity, venture capital, debt capital and royalty financing strategies.

Fund II wrapped up fundraising in 2015 and passed its target of $900 million, closing on more than $924 million. The vehicle wrote cheques for loans sized between $20 million and $150 million to healthcare companies worldwide, according to a press release put out by the firm at that time.

Fund II is targeting returns of 12-13 percent, and was approximately 80 percent invested as of August, according to documents from an 8 August Oregon State Treasury Investment Council meeting. The pension fund made a $35 million commitment to Fund II in 2015.

OrbiMed is a healthcare-focused investment firm founded in 1989. It has more than $14 billion in assets under management.