Ebb & Flow

When MPM Capital's investment management team split up in April 2005, one of the questions that arose was the appropriate size of a pure-play life sciences fund. Many VCs polled by BioCentury felt that MPM's $900 million BioVentures III fund was at the far end of the spectrum and that the sweet spot was in the $400-$600 million range. Last week provided another data point backing those assertions, as OrbiMed Advisors closed its Caduceus Private Investments III fund at $500 million. Another marker may emerge this month, as Alta Partnersis rumored to be nearing a $450-$500 million close for its next fund.

OrbiMed's new fund plans to make individual investments of $12-$50 million over four to six years. The focus will be on mid- and late stage companies focused on drug discovery, devices, diagnostics or tools. A portion will be carved out for PIPE deals with public companies. ...