Several biopharma-focused hedge fund firms have taken positions in a merger involving a special purpose acquisition company (SPAC) sponsored by life sciences investor Perceptive Advisors, according to a report by Institutional Investor.
Perceptive Capital Solutions Corp, a SPAC backed by an affiliate of Joseph Edelman’s Perceptive Advisors, has agreed to merge with Freenome Holdings, a privately held company developing blood-based tests for early cancer detection. The transaction is expected to close in the first half of 2026, at which point the combined company will be renamed Freenome Inc.
The deal is supported by a $240m private investment in public equity (PIPE), led by Perceptive Advisors and RA Capital Management. Other participants include hedge funds ADAR1 Capital and Farallon Capital Management, alongside Bain Capital Life Sciences and a group of new and existing healthcare investors.
Perceptive Capital Solutions listed in June 2024 at the standard SPAC IPO price of $10 per share, with its shares closing at $12.21 at the end of last week. RA Capital disclosed in a recent regulatory filing that it owns 750,000 shares in the SPAC, representing around 8.4% of the outstanding stock. Including shares to be received through the PIPE financing, RA Capital expects to hold roughly 13% of the combined Freenome entity following completion of the merger.
While other PIPE investors have yet to disclose their positions, many are longstanding backers of Freenome. Perceptive and RA Capital have led or participated in multiple funding rounds over several years, including a $254 million Series E round in February 2024 and a $300 million Series D financing in late 2021. Bain Capital Life Sciences, Farallon Capital, Cormorant Capital and several other healthcare-focused hedge funds have also featured prominently in earlier rounds.
