The BioCentury Show Ep. 100 - Adam Koppel on Why Private Equity Is Moving Deeper Into Biotech and What Comes Next
Jan 9, 2026
Adam Koppel, a Partner at Bain Capital Life Sciences, dives into the evolving landscape of private equity in biopharma. He outlines why traditional PE shied away from biotech and how the sector has matured to require large-scale investments. Koppel shares Bain’s unique approach to prioritizing deals and maintaining capital discipline, even as average check sizes soar. He discusses the sustainability of this trend, raising concerns over development costs and company proliferation, while remaining optimistic about private financings and IPO readiness.
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Why Private Equity Historically Shunned Biopharma
- Traditional private equity avoided biopharma because it relies on stable free cash flow and lower-risk models.
- Biopharma needs technical underwriting and accepts higher clinical and regulatory uncertainty, requiring different investor skill sets.
PE Enters Biotech With Technical Teams
- Private equity is entering biotech because returns and scale capital needs now justify specialized teams.
- Firms hire technical investors and use downside-protecting deal structures to make high-risk bets palatable.
Prioritize Clear Value Inflection Points
- Invest at clear value inflection points and identify the specific catalyst (e.g., phase II readout, regulatory clarity).
- Quantify time and capital needs, convert binary risks into skewed probabilities, and ensure term-sheet reward for risk.