Goldman Sachs Throws Weight Behind Life Sciences’ Hottest Startups with $650M Fund

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Goldman Sachs Asset Management (GSAM) has raised $650 million for its inaugural life sciences private equity fund, West Street Life Sciences I, reflecting the firm’s bullish outlook on the high-growth potential in the sector.

The fund exceeded its original fundraising target and ranks as one of the largest-ever first-time private life sciences growth funds. GSAM secured commitments from a diverse group of institutional, strategic, and high net worth investors, including meaningful capital from Goldman’s own employees.

“We are in a golden-era of innovation in the life sciences, where technological breakthroughs are creating new approaches to diagnosing and treating disease,” said Amit Sinha, head of GSAM’s Life Sciences Investing Group. “We believe the current environment provides an attractive opportunity for investing in the next generation of leading life sciences companies.”

GSAM’s entrance into life sciences PE highlights the wave of investor interest into the sector, as rapid scientific and technological advancements transform healthcare. The strategy will focus on high-growth investment opportunities in early to mid-stage therapeutic companies developing innovative drugs and treatments, as well as life sciences tools and diagnostics companies.

Specifically, the fund will target several key themes that GSAM believes will drive significant growth, including precision medicine, genetic medicine, cell therapy, immunotherapy, synthetic biology, and artificial intelligence. By leveraging GSAM’s global platform and Advisory Board of seasoned life sciences experts, the fund aims to identify the most promising companies in these emerging areas.

The Life Sciences Investing Group at the helm of managing the fund was established in 2021 and is led by Amit Sinha. The team brings decades of combined experience investing in life sciences and will tap into GSAM’s broader resources and expertise to source deals and create value.

According to Marc Nachmann, global head of Asset & Wealth Management at Goldman Sachs, “Life sciences represents one of the most exciting areas in the private investing landscape, with advances in technology transforming healthcare at an unprecedented pace. We have a long history of partnering with companies in this space and look forward to bringing the full resources of Goldman Sachs to world-class management teams who are driving progress in the industry.”

The new fund has already made 5 investments totaling approximately $90 million into high-potential life sciences startups. The deals include companies using precision medicine, immunotherapy, and artificial intelligence to develop new therapies in oncology, neurology, rare diseases, and other areas.

One portfolio company, MOMA Therapeutics, is pioneering novel therapeutics targeting mitochondrial diseases, which lack effective treatments. Another investment, Nested Therapeutics, is developing a new modality of antibody therapeutics focused on hard-to-drug intracellular protein targets.

Overall, the launch of West Street Life Sciences I demonstrates Goldman Sachs’ confidence in the booming life sciences sector and its commitment to funding innovation. With its deep expertise, global resources, and strategic focus on cutting-edge healthcare technologies, GSAM is positioning itself to capitalize on the most promising opportunities. The new fund is a bellwether for the growing intersection of finance, biotech, and next-gen medicine.

Take a moment to take a look at emerging biotech companies by looking at Noble Capital Markets’ Senior Research Analyst Robert LeBoyer’s coverage universe.

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