MPM Capital Raises Biotech’s Largest Impact Investment Fund to Help Finance the Fight Against Cancer and Other Diseases
CAMBRIDGE, Mass.--(BUSINESS WIRE)--Today, MPM Capital (“MPM”), one of the world’s leading biotech investment firms, announced that it has raised $850 million for its second Oncology Impact Fund (“OIF 2” or “the Fund”), making it the world’s largest biotech impact investment fund. OIF 2’s investment efforts are managed through BioImpact Capital, an affiliate of MPM that has been formed to broaden MPM’s investment offerings beyond venture capital into dedicated impact and public equities funds.
OIF 2 will create and invest in companies that develop innovative treatments for cancer and other areas of highest unmet medical need. The Fund’s goals are to generate a compelling financial return and a long-term impact on patients’ lives. OIF 2 will invest in private and public companies to identify the most compelling drug development programs.
OIF 2 exceeded its fundraising target of $650 million, and far outpaced the $471 million raised in 2016 for MPM’s first Oncology Impact Fund (“OIF 1”), which at the time was also the largest biotech impact investment fund ever.
MPM and its BioImpact Capital team raised $650 million for OIF 2 through their unique partnership with UBS, the world’s leading global wealth manager. UBS clients invested from around the world including the US, the UK, Switzerland, Hong Kong, and Singapore. The remaining $200 million was raised by MPM and the BioImpact Capital team directly.
“Beyond oncology, OIF 2 will also expand its focus to additional cutting-edge technologies including cell, gene, and RNA therapies,” said Ansbert Gadicke, M.D., Managing Partner of BioImpact Capital and MPM Managing Director. “Companies created by MPM remain at the vanguard of innovation, having received FDA approvals for over 50 drugs. Their continued success now stands to benefit an even greater range of investors and patients.”
MPM and its BioImpact Capital team are equally committed to generating significant social and human impact through OIF 2 and doing so without affecting investor returns. A portion of its success fees from OIF 2, as well as a royalty from treatments created by its start-up companies, will be donated to the American Association for Cancer Research (AACR), to help fund grants for next-generation cancer research, and to the UBS Optimus Foundation, to improve access to cancer care in the developing world.
“Through OIF 2, our mission is twofold: providing strong financial returns for our investors, while creating broader impact for patients even beyond the life-saving drugs we create,” said Christiana Bardon, M.D., M.B.A., Co-Managing Partner of BioImpact Capital. “The companies that we invest in are all motivated to transform the lives of patients. Our novel investment model in partnership with philanthropic organizations can amplify the benefit to patients by supporting expanded patient access and the next generation of scientific insights.”
“We are proud to connect our clients with brilliant scientists around the world who are working hard to alleviate the pain and suffering caused by cancer,” said Mark Haefele, Chief Investment Officer at UBS Global Wealth Management. “With more than $1 billion raised so far, this is what reimagining the power of investing and connecting people for a better world can look like.”
MPM’s BioImpact Capital team leverages its extensive company creation and clinical development experience along with its deep research and intellectual property expertise to successfully create and invest in companies through clinical proof of concept. In total, MPM has shepherded more than 100 companies through IPOs and mergers and acquisitions, and these companies in total have received FDA approval for 53 drugs.
MPM Capital is a world-leading biotechnology investment firm with nearly three decades of experience creating and investing in companies that seek to translate scientific innovations into cures for major diseases. With its world-class team and deep experience in scientific research, clinical development, and company-building, MPM strives to power novel medical breakthroughs that transform patients’ lives. MPM invests across the biotech landscape with venture capital offerings, and with impact and public equities products through its affiliate BioImpact Capital.
UBS provides financial advice and solutions to wealthy, institutional and corporate clients worldwide, as well as private clients in Switzerland. UBS is the largest truly global wealth manager, and a leading personal and corporate bank in Switzerland, with a large-scale and diversified global asset manager and a focused investment bank. The bank focuses on businesses that have a strong competitive position in their targeted markets, are capital efficient, and have an attractive long-term structural growth or profitability outlook.