UBS Hands Over $650 Million to Life Sciences Impact Investment Fund
Funding in the life sciences has been running rampant so far this year, with billions of dollars being funneled to companies from investors. Another large fund was announced this week, this time by MPM Capital.
UBS Global Wealth management announced that its clients have invested a whopping $650 million into MPM Capital's impact investing initiative for companies developing innovative treatments for cancer and other illnesses. The fund, dubbed Oncology Impact Fund 2, is the largest dedicated impact investment fund in biotech history, topping out at $850 million. UBS clients accounted for approximately 75% of contributions to the fund.
“For many years, UBS has been at the forefront of sustainable finance and it is our goal to continue to mainstream sustainable and impact investments,” said Ralph Hamers, chief executive officer of UBS Group. “The OIF 2 is a great example of how UBS is making further progress on this objective, working with an expert partner to connect our clients with investible solutions that have the potential to improve the health and lives of many.”
Eighty percent of the fund will be invested in private companies, while the other 20% will go toward public companies. The OIF 2 follows the UBS Oncology Impact Fund (OIF 1), which closed in 2016. The two funds combined total more than $1 billion.
"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 USD 1 billion raised so far, this is what reimagining the power of investing and connecting people for a better world can look like.”
Another fund manager that has been making headlines this week is ORI Capital Limited. On Thursday, biotechnology company AffyImmune Therapeutics said it closed a $30 million Series A+ financing round by ORI.
The Massachusetts-based company will use the funds to propel its lead asset, AIC1000, to the clinic to treat different types of thyroid cancer.
"We are delighted to strengthen AffyImmune's relationship with ORI with this additional financing," said AffyImmune President and COO Eric von Hofe, Ph.D. "ORI's dedication to transformative science and deep industry knowledge have been invaluable to our company strategy and growth, and their latest investment highlights the potential of our cutting-edge Tune & Track platform to revolutionize the treatment of solid tumors across a variety of cancers."
The company also plans to double its headcount within the coming year and focus on two additional pipeline candidates.