Differentiated Vision
Some of the greatest innovations in the healthcare sector come from developing new ways to use and/or deliver proven therapies. History shows that developing truly novel technologies involves greater risk, time and capital than anticipated. Whereas developing second and third generation versions of existing technologies results in significant incremental value relative to the risk, cost and time required. Another important distinction of our investment strategy is that we build high conviction, concentrated portfolios (5 to 7 investments per fund, with 30% to 90% ownership stakes) and apply a private equity approach to venture capital investing. Conventional wisdom suggests that Biotech investing involves binary risk. With over three decades of experience, we have found that the greater risk in biotech lies in the execution of product development, not in the science itself, despite its reputation as a binary-risk sector.
Ironically, diversification reduces focus on execution and thereby increases overall risk. This flies in the face of conventional portfolio management theory. New Rhein’s track record offers some proof of this thesis through its reliable capital returns and low loss ratios.
Strategic-Minded Life Sciences VC Investor
- Approach investments through the lens of a strategic M&A buyer with a rigorous diligence process led by team of ex-industry insiders
Reviewing over 300 targeted opportunities annually, we leverage our industry expertise and strategic buyer relationships to select investments with defined development plans and clear exit strategies, including the likely acquirer, timing, and rationale.
Focus on Health Economic Value vs. Scientific Appeal
- Understand what strategic buyers want and look for, while establishing a clear line of sight to add value
We understand that some of the greatest breakthroughs come from looking at things through a different prism. We use our extensive experience to sieve through hundreds of smart ideas with a focus not only on improving the lives of patients but also therapies that will provide economic value to stretched healthcare systems.
Private Equity Approach to Venture Capital: Less is More
- Avoid binary outcomes while building concentrated portfolio with 5-7 high conviction investments
We believe selecting the right target is only the first step; drawing on our extensive industry experience, we take active oversight roles, serving on boards, shaping executive teams, and guiding operational and financial execution, to drive the success of our investments.
