LP letter, 2026: discipline and the long arc.
Where remaining commitments will and won't be deployed across the back half of Fund III.
To our limited partners: this letter accompanies the mid-cycle update for Fund III. Cumulative committed capital across Funds I–III has been deployed across active positions, with remaining capital reserved for new investments, follow-ons, and reserves. Detailed fund-level figures are shared directly with LPs in quarterly reporting.
What we will fund
Roughly 60% of remaining capital is reserved for follow-ons in the existing portfolio. Of new commitments, we expect to deploy primarily into Series A and B rounds in drug discovery, HealthTech infrastructure, and a small allocation to AI biotech where the four traits in our recent essay are clearly present.
What we will not fund
We will not chase the late-stage pricing that has returned to private MedTech in 2026. We will not write our first cheque into a company whose primary defensibility is a model trained on public data. And we will not accelerate the pace of deployment to hit a deadline — concentrated conviction is the strategy, not the marketing.
The long arc
Healthcare venture rewards patience and punishes drift. The next 18 months will produce both — and our job is to remember which is which.