Foresite targets $705 mln for fifth healthcare fund

Healthcare-focused Foresite Capital, formed by entrepreneur James Tannanbaum, raised about $400 million for its fifth fund, which is back in market shortly after closing its prior pool, a source told Buyouts. 

Foresite Capital Fund V is targeting $705 million, a Form D fundraising document said, and could raise up to $750 million, the source said. At target, Fund V would be Foresite’s largest yet. 

No one from Foresite responded to a comment request Friday.

The San Francisco firm, formed in 2010, invests in private and public companies that develop therapeutics, discovery and data science tools and new approaches to clinical care, the firm said in a statement.  

Foresite also last year launched an affiliate called Foresite Labs, which incubates companies at the interface of data sciences and healthcare, according to Foresite’s Form ADV. Foresite Labs is led by Vik Bajaj, a managing director at the firm.

Foresite was formed and is owned by James and Dana Tannanbaum. James Tannanbaum is chief executive officer of Foresite. 

James Tannanbaum founded several companies before starting Foresite. While at Harvard, he co-founded GelTex Pharmaceuticals, which brought two drugs to market for less than $80 million. GelTex sold for $1 billion in 1999, according to Foresite’s website. 

Tannanbaum also was the founding chief executive of Theravance, which under his tenure raised $400 million. 

Foresite’s debut fund fund raised $100 million in 2013; Fund II closed on $300 million in 2014; Fund III closed on $450 million in 2015; and Fund IV closed on $668 million in 2018. 

In November, Foresite led a $90 million funding round in GenapSys Inc, which provides electronic sequencing technology. 

Update: The headline on this story changed to state the fund’s target.

Action Item: Check out Foresite’s Form ADV here: https://bit.ly/2FtWM3b