ADB signs $60m equity investment in OrbiMed to enhance health care quality

The Asian Development Bank (ADB) signed a $60 million equity investment in OrbiMed Asia Partners V, LP (OAP V), a private equity fund managed by OrbiMed Advisors LLC (OrbiMed), to further enhance health care quality and coverage in India and the People’s Republic of China (PRC).

OAP V is expected to provide mainly growth capital to between 20 and 25 health care companies across the biopharma, medical technology, health care services, diagnostics, and distribution subsectors. Investment sizes will typically range from $10 million to $50 million per company.

“ADB’s investment in OAP V advances its efforts to mobilize private sector financing for long-term health care solutions in developing Asia,” said ADB Private Sector Investment Funds and Special Initiatives Division Director Janette Hall. “Greater health care capacity is more important than ever as we recover from the pandemic, which has also exposed the need for more innovative services and digital health technologies. ”

This is ADB’s fourth investment in an OrbiMed-managed health care fund, following previous commitments in OrbiMed Asia Partners II, LP in 2014, OrbiMed Asia Partners III, LP in 2017, and OrbiMed Asia Partners II, LP in 2021.

“OAP V is expected to deliver effective and sustainable health care solutions and to support research and development in disease detection and vaccine production,” said Ms. Hall. Health care is one of the fastest-growing sectors in India and the PRC, driven by demand from a growing middle class. Health care expenditure per capita in both countries increased by more than 5% annually during 2009–2019.

OrbiMed is a leading global health care investment firm, with about $17 billion in assets under management across a range of private equity funds, public equity funds, and private credit and royalty funds. OrbiMed invests across the health care industry, from start-ups to large multinational corporations, providing tailored financing solutions and extensive global team resources to help build world-class health care companies.