Patient Square Capital is rewriting the rules of the game when it comes to investing in bear markets and sky-high inflation. On Thursday, they announced they had raised an unprecedented $3.9 billion in their inaugural fund, proving that there is still money to be made in today’s turbulent economic climate. This massive influx of capital is setting a new bar for the industry and showing that success is still possible in challenging times.
Private equity firm, New Mountain Capital, has set a new record with its $8.1 billion fund, which is the largest ever raised by a dedicated health-care-focused private equity, growth equity or venture capital firm. This marks an impressive achievement, being the largest first-time private equity fund ever raised. With these funds, New Mountain Capital is poised to bring transformative change to the healthcare industry.
At the height of the COVID-19 pandemic, when investor demand for the healthcare sector was at an all-time high, Jim Momtazee stepped away from his 23-year stint at global investment firm KKR & Co to launch Patient Square. His bold move came at a time when the world was uncertain, yet he remained confident that his venture would be successful.
Despite the dwindling availability of capital, the demand for it remains strong. Those with the courage and resources to invest have the potential to earn significant profits. According to Momtazee, CEO of the investment firm, “As long as you have the capital and courage, you can do extremely well.”
Patient Square is no small fish in the investment pond – with a whopping $5.9 billion in assets under management, including co-investments, the firm has plenty of capital at its disposal.
The firm has just launched its debut fund, bringing together more than 100 investors from across three continents. With this fund, the firm will seek to invest in a variety of opportunities, including buyouts, late-stage investments and growth-equity investments. This marks an exciting new chapter for the firm, as it looks to capitalize on the potential of the global market.
An astounding $1.5 billion has been injected into the life science sector, with up to 11 further investments set to follow suit. This major investment is sure to make a significant impact on the industry, as it advances its capabilities and reaches new heights.
Momtazee is actively involved in a diverse range of industries, sitting on the board of three companies within the Momtazee portfolio. These include a telemedicine service, a biopharma with a 15-program strong pipeline, a hearing aid company, a biotech investment firm, a gene therapy company and several others. With such a variety of companies, Momtazee is certainly at the forefront of innovation and progress.
Momtazee stated that the team has a huge task ahead of them, with the fund closing a staggering $900 million above the target.
In 2021, healthcare venture capital fundraising shattered all previous records, reaching $29.3B – a staggering 70% increase from 2020. Despite a slight dip in 2022, funding still came in at a healthy $21.8B, demonstrating the sector’s continued strength.
Analysts anticipate that, as markets remain in flux, 2023 will bring a downturn to the $15 billion range.