According to Reuters, private equity firm Bain Capital LP has announced that it has raised $720 million for its first investment fund focused on the life sciences sector. The investment fund will give Bain the supplies to focus on specific investments in the life sciences industry as it seeks more capital to fund 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."
A team of eight investment professionals will have control over the new investment fund where investments between $30-$70 million in public and private life sciences companies will be made. Areas to be focused on range from medical devices all the way to specialty pharmaceuticals to biotech.
The fund plans to target companies at specific key stages which include, raising funds for clinical trials, pursuing turnarounds and or scaling up after receiving regulatory approval for their product(s).
The investment fund will partner with Bain Capital’s private equity funds to coordinate leveraged buyouts. Unless it is of its private equity investments, the fund will not seek a controlling stake in the select companies it will invest in. It will seek board representation in its portfolio companies nonetheless.
"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 Sciences.
Bain Capital has made two investments through the new fund, biotech company Dicerna Pharmaceuticals, Inc. (NASDAQ: DRNA) and private company Solid Biosciences. Both companies are in development stages that aim to treat rare diseases.