Cowen Healthcare Raises $550M+ for Fourth Life Science-Focused Fund

Cowen Healthcare Investments has pulled in more than $550 million for the final close of its fourth flagship fund – Cowen Healthcare Investments IV – which will target mid-to-late-stage life science deals.

New York-based Cowen, a subsidiary of Cowen Investment Management, invests in companies across the biopharma, diagnostics and digital health sectors.

Led by Kevin Raidy, Tim Anderson and Robert Sine, the firm has amassed $1 billion under its management since inception in 2012, and it plans to back both private and public companies, adding to a portfolio that’s already invested in more than 60 startups.

“We will continue to seek life sciences investment opportunities with exciting potential to advance the healthcare landscape,” said Raidy.

Existing companies in the Cowen portfolio include Nested Therapeutics, Acelyrin, Arch Oncology, Prometheus Biosciences (which is being acquired by Merck), Ovid Therapeutics, Bluebird Bio and others.

The final close comes three years after the fund collected $493 million for its predecessor fund, beating its $400 million target. Limited partners include institutional investors, family offices, wealth managers and individuals.

The fundraise expands the pool of capital ready to be deployed in an industry full of startups struggling to raise cash. At the same time, investors are reeling funds to back the next generation of drugs and healthcare tools. Dutch firm Gilde Healthcare, Josh Wolfe’s Lux Capital and the once GSK-affiliated SR One have announced billions of dollars in new funds this year.