With $4.6B fund to spend, Blackstone branching beyond Clarus’ ‘bread and butter’ risk-sharing deals

Two years after Clarus’ acquisition by Blackstone, the life sciences investor is taking advantage of its parent company’s scale to stretch beyond its initial sweet spot. The firm that specialized in risk-sharing deals is now seeking to invest in products it can shepherd through to commercialization, as well as earlier growth-stage deals in companies with innovative science.

Formed in fall 2018 upon the deal’s execution, the Blackstone Life Sciences division has already committed a third of the $4.6 billion Fund V it closed in July, a vehicle roughly five times the size of Clarus’ final $910 million, 2017-vintage fund. New personnel have helped the firm complete partnerships including royalty deals, pharma spinouts and its first med-tech deal to complement its existing holdings...