Blackstone Inc. closed its $6.3 billion Blackstone Life Sciences VI fund, its largest life-sciences vehicle to date. The firm, led by Nicholas Galakatos, targets Phase III clinical trials for medicines and technologies in collaboration with pharmaceutical, medical-tech, and biotech partners. This surpasses its 2020 fund of $4.6 billion, reflecting growing investor confidence in late-stage drug development.

The fund addresses a critical $100 billion annual gap in clinical trial capital, according to Galakatos. Blackstone’s approach involves milestone payments tied to regulatory approvals and sales thresholds, alongside royalties sold to investors post-launch. Recent partnerships include Merck’s sacituzumab tirumotecan and Teva’s duvakitug antibody development.

Blackstone’s life-sciences division manages $15 billion in assets, with its prior fund achieving an 18% net internal rate of return. The strategy focuses on high-impact products, narrowing funding gaps for pivotal therapies. This expansion underscores Blackstone’s dominance in life-sciences royalty financing.