Need alternative funding channels? Perceptive Advisors now has $675M devoted to those deals

The global tide of capital gushing into biopharma isn’t just going through traditional venture funds. As Perceptive Advisors is showing with their $675 million fund closed today, an increasing array of financing options are opening up to small- and mid-sized biotechs.

Sam Chawla

This is Perceptive’s second Credit Opportunities Fund, designed to provide “customized, minimally-dilutive debt financing solutions” ranging from $10 to $100 million per investment.

Like Fund I from 2016 — which totaled $323 million and capped each deal at $50 million — Fund II will open its doors to all kinds of healthcare companies, from biopharma and diagnostics to medical devices, life science research and information technology.

“We are continuing to see strong interest from healthcare companies seeking alternative funding solutions to enable growth and expansionary R&D opportunities,” said Sam Chawla, portfolio manager of Perceptive’s Credit Opportunities Funds.

Previous beneficiaries of the fund include specialty pharma Aquestive Therapeutics and VBI Vaccines, both of which negotiated senior debt facilities with warrants from Perceptive to finance R&D.

The money in this new fund comes from “a globally diverse group of institutional investors, including foundations, endowments, family offices, financial institutions and pension funds,” Perceptive says, contributing to an oversubscribed round.

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Research Scientist - Immunology
Recursion Pharmaceuticals Salt Lake City, UT
Director of Operations
Atlas Venture Cambridge, MA

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