Longitude Capital will use its new $385 million fund to invest in later-stage life science companies.
Longitude made the announcement Wednesday, but word had leaked out about the size of the fund (oversubscribed) in the past several weeks. In its release, Longitude co-founder Juliet Tammenoms Bakker reiterated the fund strategy of targeting “primarily mid-stage to commercial-stage companies with clinically de-risked assets and three-to-five year liquidity horizons.” But sources also told Private Equity Hub that Longitude would favor the later stage deals and also emphasize Private Investment in Public Equity (PIPE) deals. This was confirmed by the release:
Patrick Enright, Longitude co-founder and Managing Director, commented, “We believe that Longitude Capital’s investment strategy is well-suited to current market conditions. In the evolving venture capital market, our experience with PIPEs, spin-outs and recapitalizations, combined with our proactive research to identify contrarian opportunities and ‘special situations’ helps us exploit value dislocations and accelerate returns.”
Longitude has invested in companies from its back yard in Menlo Park but also from Boston to Newport, Kentucky, to Pittsburgh to Dublin, Ireland. And they range from heart diagnostics companies to spinal medical device business to pediatric pharmaceutical companies. Portfolio companies include CardioDx, Jazz Pharmaceuticals, Xanodyne and NxStage Medical.