Pictet holds first close for healthcare fund-of-funds

Rachel Lewis
16 February 2022

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Pictet Alternative Advisors (PAA) has held a first close for its healthcare fund-of-funds towards its target of USD 400m, the GP told Unquote.

Around 60% of the vehicle will be invested in healthcare funds with the remainder being deployed on co- and direct investments, said the fund's investment manager Yann Mauron.

The co-investments will largely be in deals made by the fund's partners. "In time we want to develop to be more direct in our investment," said Mauron.

It is the second thematic fund-of-funds for Pictet: the investor held a final close for its technology-focused fund-of-funds on USD 350m in September 2021.

Mauron could not put a timeframe on when the fund will close, but said it would be "sooner rather than later", and that it had held a first close.

Pictet launched the healthcare and biotech fund in January 2022. It will look to invest in around 20 funds, deploying tickets of USD 5m-15m in growth, venture and buyout strategies.

It has a global mandate, looking to invest across the US, Europe and Asia. It has a holding period of three to six years.

The fund will target five verticals: therapeutics, diagnostics, digital health, medical technology, and healthcare services.

Around half of the fund will be deployed under the first vertical, therapeutics. "This is mainly for the US market," said Mauron. "We find few dedicated therapeutic funds elsewhere. Here we would like to invest at the company-creation stage in businesses working in oncology, immunology – the usual areas."

On the technology side, it is interested in the venture stage at anything from drug discovery and other tools that optimise the pharma sector, to delivering drugs to patients, and telemedicine.

For healthcare providers, it will look at buyout strategies in service areas like clinics and pharma outsourcing, like CDMOs and CROs.

See an overview of Pictet's investments as an LP here.