Deerfield Management

Deerfield Management Company, L.P. is an employee owned hedge fund sponsor. The firm primarily provides its services to pooled investment vehicles. Deerfield is famous, and perhaps a bit infamous, for its structured financings for out-of-favor healthcare companies, particularly biotechs. These financings have helped many a biotech live to fight another day and subsequently prosper, but the financing terms are often steep--often including warrants, which allows the firm to purchase stock cheaply at a later date when its stock price may have climbed substantially. The firm prides itself on employing the most relevant financing structure, regardless of type. This gives it an edge over some investors who can be tied to particular forms of investment given their fund structure. Not Deerfield. It will do a debt, secondary, IPO (initial public offering), or royalty financing.

Deerfield Management Company, L.P. is an employee owned hedge fund sponsor. The firm primarily provides its services to pooled investment vehicles. Deerfield is famous, and perhaps a bit infamous, for its structured financings for out-of-favor healthcare companies, particularly biotechs. These financings have helped many a biotech live to fight another day and subsequently prosper, but the financing terms are often steep--often including warrants, which allows the firm to purchase stock cheaply at a later date when its stock price may have climbed substantially. The firm prides itself on employing the most relevant financing structure, regardless of type. This gives it an edge over some investors who can be tied to particular forms of investment given their fund structure. Not Deerfield. It will do a debt, secondary, IPO, or royalty financing.

Deerfield Management Company, L.P. was established on January 13, 1994, by James Edward Flynn and is based in New York City.The firm is a global fixed-income investment adviser that has managed institutional, alternative accounts since 1994. Deerfield Management Company, L.p. (series C) is a large advisory firm with 14 clients and discretionary assets under management fund.

Deerfield Management launched in 1994 with $17 million in equity. Twenty years later, it manages funds in excess of $5 billion. So, only roughly half of its holdings, when measured by value, are represented in its latest SEC filing.

Deerfield Capital Management has made 42 investments. One of their investments was on Jan 18, 2019, when they invested $8M in Itamar Medical. Deerfield Capital Management has had 20 exits, including Foundation Medicine, Orchard Therapeutics, and Alector.

The firm invests in public equity markets of the United States. The firm makes its private equity investments in large-cap and growth companies. It typically invests in healthcare sector which includes pharmaceuticals, biotechnology, generic drugs, over the counter drugs, medical devices, medical equipment, diagnostics, hospital supplies, hospital services, acute care hospitals, nursing homes, psychiatric hospitals, alternate site providers, home care, physician practice management, medical software HMOs (health maintenance organization), health insurers, benefit management companies, distributors, drug stores, and animal healthcare products and services. The firm employs fundamental analysis to make its portfolio. It obtains external research to complement its in-house research.