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ADB anchors $300m Asia healthcare fund

The Asian Development Bank has made a $60m commitment to OrbiMed Asia.

Development finance institution the Asian Development Bank has made a $60 million commitment to OrbiMed Asia, a regional private equity fund focused on the healthcare sector, according to a statement.

The fund, OrbiMed Asia Partners II, is a $300 million vehicle that will invest in healthcare-related companies across Asia, with a “substantial portion” of the fund expected to invest in Greater China and India.

Its target sectors include pharmaceuticals, medical devices and diagnostics, hospitals and health services providers, as well as research and manufacturing companies.

The firm launched the vehicle in August last year, although had decreased its original target from $500 million, Private Equity International reported earlier. OrbiMed raised its first pan-Asia healthcare private equity fund in 2008.

“Healthcare is a specialised sector with limited participation across mainstream institutional investors, particularly in Asia. As one of the anchor investors in the fund, ADB will help catalyse additional investments in healthcare companies and sub-sectors that are envisioned to improve the delivery of healthcare goods and services at higher quality and lower cost,” Todd Freeland, director general of ADB’s private sector operations department, said in a statement.

The fund will be managed by OrbiMed Advisers, a global investment firm focused on the healthcare sector. The firm has approximately $10 billion in assets under management and has invested approximately $1.7 billion in more than 165 private healthcare companies since 1993.