At a glance
- The company announced the vehicle on Oct. 28, according to HedgeCo News.
- The fund is earmarked to finance 10 to 15 drug programs over the next three to five years and advance them through key clinical milestones.
- Fee and carry terms were not disclosed, a material gap for allocators evaluating the vehicle against its asset-level structure.
Formation Bio raised $600 million in capital commitments for its first fund, the Formation Bio Drug Development Accelerator Fund, which will acquire and develop clinical-stage drug programs. The company announced the vehicle on Oct. 28, according to HedgeCo News.
The fund is earmarked to finance 10 to 15 drug programs over the next three to five years and advance them through key clinical milestones. Formation Bio acquires or in-licenses Phase 1 and Phase 2 programs from pharmaceutical and biotech companies. It prioritizes assets with a clear path to clinical proof of concept in diseases with substantial unmet need but limited industry activity. The fund exclusively finances programs within Formation Bio's own portfolio, the company said.
Fee and carry terms were not disclosed, a material gap for allocators evaluating the vehicle against its asset-level structure. Formation Bio is general partner through a wholly owned subsidiary and has committed its own capital alongside the fund's investors, and each funded program sits in a standalone corporate entity. Limited partners include research foundations, institutional endowments, hospitals and philanthropic organizations, according to the company.
| Vehicle | Commitments | Mandate | Pace |
|---|---|---|---|
| Formation Bio Drug Development Accelerator Fund | $600 million | Acquire or in-license Phase 1 and Phase 2 programs inside Formation Bio's portfolio | 10 to 15 programs over three to five years |
Reported by the Raises & Launches desk from HedgeCo News. Published . Corrections