Deerfield Announces New $1.4-billion Private Investment Fund

Deerfield Private Design Fund V will provide customized solutions to private and public companies at all stages of innovation

New York, NY (Aug. 4, 2021) —Deerfield Management Company, a New York City-based healthcare investment firm focused on advancing healthcare through investment, information and philanthropy, today announced that it has launched Deerfield Private Design Fund V, L.P. The investment fund held its final closing on July 30, 2021 with approximately $1.4 billion in committed capital and will provide privately structured financing for healthcare companies.

“This is a time when significant value can be added to our healthcare system.  Technological advances and more sophisticated use of data are allowing the development of important new therapeutics and systems for more optimally and cost effectively delivering care.  Given Deerfield’s deep relationships within the healthcare industry and uniquely supportive operational infrastructure as well as decades of experience, we are excited to take on some of the world’s most challenging health issues,” said James E. Flynn, Managing Partner at Deerfield.

The Fund is designed to provide customized solutions to private and public companies at all stages of development, ranging from early-stage start-ups to established industry leaders. Similar to Deerfield’s previous funds, the mission of Deerfield Private Design Fund V is to advance all aspects of medicine and healthcare, including biotechnology, pharmaceuticals, medical devices, healthcare services and patient care. It expects to employ a full range of financing structures including equity, debt, royalty interests, joint ventures among other structured financing alternatives.

Portfolio Companies will gain leverage from Deerfield’s external operations which provides operational support, the Deerfield Discovery and Development (3DC) team, a scientific team that partners closely with principal investigators in Deerfield’s academic collaboration network, corporate partners and entrepreneurs to provide deep functional expertise and project oversight, and the Deerfield Institute, which provides primary and secondary market research. 

“Obstacles to efficient growth and success for start-up companies is lack of access to resources, facilities, focused discovery expertise and drug development capabilities, said Mike Foley. “To address these concerns, Deerfield pioneered 3DC, a model of partnership with academic institutions, which helps to advance commercially viable innovations as well as provide a deep level of expertise that Deerfield’s Portfolio Companies may access.”

Deerfield has been investing in and supporting the healthcare industry for more than 25 years, and partner companies benefit from its organizational capabilities. Deerfield currently manages approximately $14 billion in public and private healthcare investments, and has previously raised four Private Design healthcare funds.

Today, Deerfield has more than 150 experienced healthcare-focused professionals with specialized knowledge in medicine, life sciences, drug and medical device development, healthcare markets, public policy, value-based care, financial instruments, tax, accounting, operations, corporate strategy, market access research, marketing, biostatistics and sector dynamics, all of which can be leveraged by its partners. Deerfield team members also contribute and manage the Deerfield Foundation, which as of March 2021 has committed or invested more than $68 million to organizations seeking to improve the delivery of healthcare, with a focus on underserved children.

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About Deerfield

Deerfield is an investment management firm committed to advancing healthcare through investment, information and philanthropy. For more information, please visit www.deerfield.com.