Medicxi has closed a €500 million fund to advance its asset-centric approach to building and investing in European biotechnology companies, securing strong backing from existing limited partners and a select number of new institutional investors.

The new vehicle, Medicxi V, will support the creation of biotechnology companies built around single assets or small clusters of assets with clear development paths. The firm said the fund will also provide follow-on capital for portfolio companies that fit its value-creation model.

The raise follows a period of rapid activity for Medicxi. Since its previous fund, the firm has launched 16 companies, generated more than 20 positive clinical data readouts and realised over $1 billion across its portfolio. Those returns include value from companies such as Vaxcyte, Merus and Abivax, and from the acquisitions of ViceBio by Sanofi, Versanis Bio by Eli Lilly and ProfoundBio by Genmab.

Francesco De Rubertis, co-founder and partner at Medicxi, said: “Medicxi’s longstanding success has been founded on its unique ties to leading global pharmaceutical companies and its world-class team of drug hunters and clinicians.” He added that the fresh capital will allow the firm to support programmes with the potential to deliver new treatments for patients.

The asset-centric model, which Medicxi has championed for over a decade, aims to streamline early-stage biotech development by building companies around discrete products rather than broad platforms. Supporters argue that the model can reduce risk and increase clarity for investors and partners by focusing resources on well-defined clinical objectives.

Giovanni Mariggi, co-founder and partner at Medicxi, said: “Medicxi’s differentiated, capital-efficient investment strategy is rapidly scaling and we have now raised six funds in the last 10 years, totalling over €2.0 billion.” He added that continued support from new and existing investors will help the firm invest in science that could shape the next generation of medicines.

Medicxi V will be managed by the firm’s existing investment leadership. Alongside De Rubertis and Mariggi, investing partners in the fund include Nick Williams and Shyam Masrani. The firm has also promoted Masrani to partner. He has led investments in Merus and ProfoundBio and currently sits on the boards of Acera Therapeutics, T-CypherBio and Petalion Therapeutics.

The firm said the new fund will allow it to continue backing drug hunters and founders across all stages of development. Medicxi expects to support both newly formed start-ups and maturing clinical companies whose programmes align with its model.