RA Capital Management
| Company type | Private |
|---|---|
| Industry | Investment management, Healthcare, Biotechnology, Planetary health |
| Founded | 2001 |
| Founder | Richard Aldrich |
| Headquarters | Boston , United States |
Area served | Global |
Key people | Peter Kolchinsky (Managing Partner), Rajeev Shah (Managing Partner) |
| Products | Public and private equity investments, Venture capital funds, Incubators |
Number of employees | 130 (2025) |
RA Capital Management (commonly known as RA Capital) is a private investment firm located in Boston, concentrating on both public and private equity within the healthcare, biotechnology, and planetary health industries.
History
The firm was established in 2001 by Richard Aldrich, who co-founded Vertex Pharmaceuticals. RA Capital officially commenced operations in 2004 after Aldrich recruited Peter Kolchinsky, then pursuing a PhD in virology at Harvard, to oversee $4 million allocated for early-stage biotech investments. Initially operating as a hedge fund targeting publicly traded companies, RA Capital later broadened its scope to include private investments and created an internal research division called TechAtlas to identify opportunities related to specific diseases.
One of the firm's early achievements was its stake in Triangle Pharmaceuticals, which Gilead Sciences acquired for $464 million in 2003. Aldrich left RA Capital in 2009 to launch Longwood Fund but continues to hold an investment position. That same year, the firm experienced a 35.3% reduction in assets due to significant holdings in Sequenom, leading to the implementation of a 15% cap on individual investments.
In 2010, RA Capital made its inaugural private equity investment by contributing $15 million during T2 Biosystems' Series C financing round. The company faced regulatory penalties totaling $3.63 million in 2014 for infractions involving short selling and stock issuance violations. By 2015, RA Capital had realized an annualized return rate of 28.4%.
The launch of RA Capital’s first venture capital fund, Nexus Fund I, occurred in 2019 with $300 million raised. This was succeeded by Nexus Fund II at $461 million in 2020 and Nexus Fund III at $880 million in 2021. Additionally, the firm created incubators named Carnot and RAVentures to nurture early-stage biotech enterprises.
In 2023, RA Capital expanded its focus to include planetary health investments by forming a specialized team that participated in major funding rounds for companies involved in recycling and battery manufacturing equipment. As of March 2025, the firm managed assets totaling $12.6 billion and employed approximately 130 staff members at its headquarters located in Boston’s Berkeley Building.
Leading the company are Managing Partners Peter Kolchinsky and Rajeev Shah. RA Capital’s strategy combines hedge fund methodologies with venture capital and private equity approaches to sustain competitive positioning and promote growth within global healthcare markets.