Deerfield Management Closes Over $600 Million Healthcare Venture Fund

Deerfield's Healthcare Innovations Fund III will invest in promising therapeutics, improvements to healthcare delivery, and paradigm-shifting technologies

NEW YORK, May 5, 2025 /PRNewswire/ -- Deerfield Management Company, L.P., today announced the closing of the Deerfield Healthcare Innovations Fund III, a fund of over $600 million that aims to advance healthcare by investing in promising therapeutics, improving care delivery models, and elevating emerging technologies with the potential to shift existing paradigms, including machine learning and artificial intelligence.

"There has never been a better time to invest in new and evolving technologies and products across the life science, medical technology, and healthcare service landscape. Advancing knowledge, data, and software capabilities are transforming what is possible to achieve in improving health outcomes," said James Flynn, Managing Partner at Deerfield.

Enabled by Deerfield's collaborations with 29 leading research institutions and nine industry partners, Deerfield operationalizes innovation through its in-house ecosystem. Specialized teams like Deerfield Discovery and Development (3DC) and Deerfield Intelligence employ seasoned drug hunters, medical technology innovators, and software developers to identify and advance promising products, services, and technologies, often in partnership with Deerfield-founded entities like Deerfield Catalyst and Genscience.

Deerfield is housed at Cure, a twelve-story healthcare innovation campus located in New York City with a mission to accelerate cures by helping health innovators develop products and services from concept to commercialization. Cure's resources include state-of-the-art research laboratories and convening spaces and is staffed to support health innovators' business needs.

Deerfield recognizes that advancing healthcare requires more than a for-profit investment model can provide. In keeping with the firm's long-standing practice, Healthcare Innovations Fund III will donate a portion of profits not allocated to the fund's limited partners to the Deerfield Foundation, a not-for-profit organization focused on improving the health of children worldwide. Since its inception in 2005, the Deerfield Foundation has partnered with a diverse slate of healthcare-focused non-profits to make a difference in the lives of patients and families, from clinics in the South Bronx to care facilities in the highlands of Nepal. Foundation funds are provided via employee contributions as well as fund profits.

Deerfield has invested in and supported the healthcare industry for over 30 years. Today the firm employs more than 180 professionals, with specialized knowledge that spans clinical and translational medicine, drug and medical device development, healthcare policy and markets, machine learning and data science, biostatistics, value-based care, financial instruments, operations, corporate strategy, market access research, sector dynamics, and more, which can be leveraged by corporate and strategic partners.

About Deerfield Management

Deerfield is an investment management firm committed to advancing healthcare through investment, information, and philanthropy. The Firm works across the healthcare ecosystem to connect people, capital, ideas, and technology in bold, collaborative, and inclusive ways. For more information, please visit www.deerfield.com.

Contact
Jessica Sagers, PhD, Head of Communications
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SOURCE Deerfield Management Company, L.P.