Equity into royalty

OrbiMed Advisors is expanding beyond equity investing with a new $600 million fund that will invest in royalties and debt. According to the firm, the fund was able to double its initial target because investors liked the idea of an opportunity that is uncorrelated with the equity markets.

Carter Neild of OrbiMed told Ebb & Flow it took a little less than a year to raise the fund, which was originally targeted at $300 million. "We probably had demand for $1 billion; it was well oversubscribed," he said...