Family offices ramp up deals in June with bets on biotech and pharma

Investment Firms of the Ultra-Rich See Surge in Deal-Making

After a slow spring, investment firms of the ultra-rich made 60 direct investments in June, according to Fintrx. This marks an improvement over the 47 deals recorded in May, though it represents a 40% drop on a year-over-year basis.

Trends in Investment

Family offices flocked to biotech and health-care firms, such as Antheia, seeking to make an impact and returns at the same time. Biotech and health care proved to be more popular themes, accounting for nine deals by heavy-hitter family offices. Antheia, a biotech firm, raised a $56 million Series C with investors including family offices Athos KG and S-Cubed Capital.

Antheia: A Leader in Biotech

Antheia founder Christina Smolke told CNBC’s Inside Wealth that family offices’ patient capital makes them a good fit for investing in scientific breakthroughs. Smolke, a Stanford professor with a Ph.D. in chemical engineering, said that family offices tend to be able to be patient with their investments, and that aligns really well with the cycles and the timelines that are needed for biotech and to bring new products, new technology, and new transformation, at a system level, to healthcare.

The Appeal of Biotech to Family Offices

For impact-driven family offices, biotechnology can serve as a familiar frontier, Smolke said. It can speak to investors very directly, as everybody has actually directly experienced challenges with drug shortages — even in the U.S. — of going to the supermarket and having cold medicines out of stock or not being able to get certain antibiotics. The core aspect that’s shared through all of this is being able to rebuild these essential medicine supply chains so that drug shortages become a thing of the past and access, globally, becomes more equitable.

Conclusion

In conclusion, investment firms of the ultra-rich are seeing a surge in deal-making, with a focus on biotech and health care. Family offices are drawn to these investments due to their potential for impact and returns, as well as their alignment with the patient capital that family offices can provide. As the biotech industry continues to grow and evolve, it is likely that family offices will remain a key player in its development.

FAQs

Q: What type of investments are family offices making?
A: Family offices are making investments in biotech and health care firms, such as Antheia.
Q: Why are family offices a good fit for biotech investments?
A: Family offices are a good fit for biotech investments because they have patient capital, which aligns well with the cycles and timelines needed for biotech.
Q: What is Antheia working on?
A: Antheia is working on developing 70-plus pharmaceutical ingredients necessary for medicines used to treat cancer, bacterial infections, seizures, and other conditions.
Q: What is the goal of Antheia’s work?
A: The goal of Antheia’s work is to rebuild essential medicine supply chains so that drug shortages become a thing of the past and access, globally, becomes more equitable.