A US biotech investor is braving London’s moribund new listings market and Brexit to raise up to $350 million (£277 million) for a healthcare fund.
RTW Investment, based in New York, has crossed the pond to work with bankers at Barclays and JPMorgan Cazenove to launch the RTW Venture Fund, which invests in biotech start-ups.
The timing is significant because London has endured its worst period for floats in a decade. Only four companies came to market last quarter.
Shares will start trading on October 30, a day before the UK is due to leave the EU when markets could be on a knife edge.
Healthcare funds have come under scrutiny in the UK due to problems faced by Neil Woodford and his Patient Capital Trust, with its shares down 56%.
RTW has invested around $55 million in a string of biotech stocks, including insulin delivery firm Beta Bionics and US-listed gene therapy developer Rocket. It also ploughed money into London-based Immunocore, a stock Woodford has also backed heavily.
RTW Investment is run by Roderick Wong, who previously led healthcare funds at US private equity firm Davidson Kempner.
The firm has already raised $118 million privately from 92 investors, including $25 million from Wong, but will now tap London’s pool of capital.
