Alts Watch Healthcare Beat: $343 million in funding from HFs, growth PE and venture debt firms

A total of $343 million in private capital was invested in five key biotechnology/therapeutics initiatives for the week ending January 24. The firms involved were some of the usual suspects with life sciences investors scrambling to help advance gene editing techniques and treatments for cancer and rare diseases. Hedge fund firm Citadel’s Surveyor Capital participated in two of this past week’s deals, backing Verve Therapeutics and Vera Therapeutics. Set up in 2008, the firm is a global, multi-manager equities strategy and is one of Citadel’s three fundamental equities business. This week also includes one venture debt deal structured by Runway Growth Capital. Venture debt is growing in popularity among investors as yet another way to gain persistent return streams regardless of the direction of the traditional equity and bond markets. Alternatives Watch has been tracking financing deals totaling $40 million and up since late September 2020. Here’s our weekly round-up. Verve Therapeutics The deal: $94 million in Series B financing.The players: The deal was led by Wellington Management and co-led by Casdin Capital and other existing investors participated as well. New investors included: Redmile Group, Janus Henderson Investors, Cormorant Asset Management, Rock Springs Capital, Novo Holdings A/S, Logos Capital, Surveyor Capital (a Citadel company), RA Capital Management and a U.S.-based healthcare-focused fund.The play: The proceeds are set to advance Verve’s pipeline of gene editing medicines. Verve CEO Sekar Kathiresan is reportedly looking to use CRISPR and basis editing technology to create one-and-done treatments for heart disease that can be prescribed to the masses. Vera Therapeutics The deal: $80 million in Series C financing.The players: Led by Abingworth, other investors included Sofinnova Investments, Longitude Capital, Fidelity Management & Research Company LLC, Surveyor Capital (a Citadel company), Octagon Capital, Kleiner Perkins, GV (formerly Google Ventures), and Alexandria Venture Investments.The play: The capital influx is set to help develop its novel biologic for IgA nephropathy, a rare kidney disease known as Berger’s Disease. The proceeds also are going to be used to scale the firm’s manufacturing capabilities and to expand its therapeutic pipeline in immunologic and inflammatory disease. Adagene The deal: An infusion of $69 million in Series D financing round is expected to lead to plans for a $125 million IPO.The players: The Series D financing included a $50 million investment from lead investor General Atlantic, a growth equity investment firm. Lefei Sun, managing director and head of healthcare for China at General Atlantic, said, “We are proud to partner with Adagene as we increase our commitment to the life sciences industry in China.”The play: China-based Adagene is a cancer biotech company that is prepping for early-phase clinical trials in patients with advanced or metastatic solid and liquid tumors. Senseonics The deal: A $50 million registered direct offering of common stock.The players: Undisclosed institutional investors.The play: Senseonics is focused on the development and commercialization of long-term, implantable continuous glucose monitoring systems for people with diabetes. The $50 million in proceeds will go toward general corporate processes. Vero Biotech The deal: $50 million funding round via a senior secured term loan.The players: Runway Growth Capital, a venture debt firm, provided the backing for the firm.The play: Vero is known for its "tankless" inhaled nitric oxide delivery system that has been approved by the FDA. The financing will help Vero’s marketing and product development.

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