While much of the investment in biopharmaceuticals is coming from venture capital managers, private equity firms are quickly building up their life sciences portfolios, which invest in pharmaceuticals and companies and properties supporting pharmaceutical development and distribution.
Blackstone Group Inc. is building an entire ecosystem around life sciences across its business, said Jonathan Gray, president and chief operating officer, during the firm's Jan. 27 earnings call.
"For the past several years, we've been orienting the firm toward faster growing areas, such as life sciences and those connected to the digital economy," Mr. Gray said
"These continue to be among the best-performing sectors of the market and were the largest drivers of appreciation in our funds," he said.
Blackstone launched its life sciences business investing in the sector in the fourth quarter of 2018 when it acquired global life sciences private equity manager Clarus.