Blackstone Closes $1.6B Life Sciences Fund

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Blackstone is becoming king of alternative assets. 

The global asset management firm closed its inaugural royalty and structured credit-focused life sciences fund, called Blackstone Life Sciences Yield, with $1.6 billion focused on post-approval, commercial-stage opportunities. The firm claims it’s the largest first-time fund of this nature.

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The new life sciences vehicle follows the announcement earlier this week that Blackstone acquired the largest student housing developer in the country. In the past couple years, the firm has also earmarked billions of dollars for other alternative classes, including sound stage studios, single-family home rentals and self-storage. 

The $1.6 billion will enable Blackstone Life Sciences to support end-to-end life sciences innovation at scale and showcase “Blackstone’s deep conviction in this sector.” Due to spiking demand for new space, national investment in life sciences research and development facilities surged again in 2021, reaching $21.4 billion, or 62 percent more than the total from the year prior.

“Blackstone Life Sciences aims to invest across the full lifecycle of innovative medicines and medical technologies,” said Nicholas Galakatos, global head of Blackstone Life Sciences. “BXLS Yield comes at a critical time for many companies in need of structured credit and royalty opportunities as they seek to grow their business in challenging market conditions.”

The firm launched Blackstone Life Sciences nearly four years ago.

Gregory Cornfield can be reached at gcornfield@commercialobserver.com.