LP letter, 2026: dry powder, discipline, and the long arc.
Where US$320 million of 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 sits at US$950 million, of which US$630 million is deployed across active positions. US$320 million remains for new investments, follow-ons, and reserves.
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.