Blackstone closes biggest-ever first-time life sciences yield fund on $1.6bn

Apr 22, 2022 | News

Blackstone has closed its first life science yield fund on with $1.6bn of capital commitment, the largest first time fund of the nature.

BXLS Yield is a royalty and structured credit-focused life sciences fund focusing on post-approval, commercial-stage opportunities. The firm said it complements the flagship strategy of BXLS which invests in late-stage product development.

The two funds will work together to support end-to-end life science innovation at scale.

Nicholas Galakatos, global head of Blackstone life sciences, said, “Blackstone Life Sciences aims to invest across the full lifecycle of innovative medicines and medical technologies. BXLS Yield comes at a critical time for many companies in need of structured credit and royalty opportunities as they seek to grow their business in challenging market conditions.

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“We anticipate these two pools of capital will allow us to offer strategic financing solutions to our partners as we did through our $2bn collaboration with Alnylam in April 2020.”

Craig Shepherd, senior managing director at Blackstone Life Sciences, added, “The diversity of capital, resources and scientific expertise that Blackstone can offer is a clear differentiator. We are excited to continue partnering with leading life sciences companies around the world and to help grow their businesses.”

Blackstone launched Blackstone Life Sciences four years ago. It forayed into the sector by securing a $2.6bn deal for life science investment firm Clarus in 2018.

It closed its inaugural life science fund Blackstone Life Sciences V in 2020 on its $4.6bn hard cap, making it the largest life sciences private fund at the time.

Investments from the fund include a $350m investment in Reata Pharmaceuticals and a $337m collaboration with Medtronic.

Source: Altassets

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