May 23 Private equity firm Bain Capital LP said
on Tuesday it had raised $720 million for its first investment
fund focused exclusively on the life sciences sector.
The fund will give Bain the ammunition to focus on targeted
investments at a time when the life sciences industry seeks more
capital to fund its expansion.
"We are excited by some of the long-term secular trends in
the life sciences space," said Adam Koppel, a managing director
at Bain Capital Life Sciences. "Big pharma is increasingly
outsourcing R&D at the same time as many new technologies and
treatments are being developed."
Guided by a team of eight investment professionals, the new
business will make investments of between $30 million and $70
million in public and private life sciences companies in areas
ranging from medical devices to specialty pharmaceuticals to
The fund will target companies at several key stages of
their life cycle, including raising funds for clinical trials,
scaling up after receiving regulatory approval for their
products, or pursuing turnarounds.
It will also partner with Bain Capital's private equity
funds to participate in leveraged buyouts.
With the exception of its private equity investments, the
fund will not usually seek a controlling stake in the companies
it invests in, but it will aim for board representation in its
"We are not going to be activist investors, we are going to
be more like what they call 'constructivist' investors who play
an important role in companies' strategic decisions," said Jeff
Schwartz, also a managing director at Bain Capital Life
Bain Capital has already made two investments through the
new fund, in publicly traded biotechnology company Dicerna
Pharmaceuticals Inc and in privately held Solid
Both are development-stage companies that are aiming to
treat rare diseases, among other conditions.
Based in Boston, Bain Capital is one of the largest
alternative investment firms in the world, with around $75
billion of assets under management.
It has made a number of major investments in various areas
of healthcare, including contract researcher Quintiles,
behavioral health facility operator Acadia Healthcare Co Inc,
and drugmaker QuVa Pharma.
(Reporting by Carl O'Donnell in New York; Editing by Phil