DNA as data – a new alternative asset? Plus: Decarbonization powers mid-market infrastructure in Europe

Welcome to the weekly round-up of highlights from our free daily Preqin First Close newsletter, your essential guide to the global alternatives industry. I’m Jayda Etienne, Deputy Editor, and every Friday I select exclusive news and insights from the past week.

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Lets kick things off with some trivia – What’s the difference between humans and bananas? Not much as far as DNA goes. About 60% of our genes have a recognizable counterpart in the banana genome. Which other lifeform are we genetically similar to?  

a) Cats

b) Horses 

c) Penguins 

d) Rabbits  

Find the answer at the end of the newsletter.

Diverse start-ups aim to transform genetic code into valuable datasets  

Over 15 million customers worldwide have sent their DNA to 23andMe with the aim of exploring their genetic identity, according to the company. But what happens to that data now?  

The business filed for Chapter 11 bankruptcy on March 22, securing up to $35mn in debtor-in-possession financing from JMB Capital  to support operations during a court-supervised asset sale. Up for grabs is one of the largest DNA repositories in the world – a blueprint for humankind.   

23andMe shows how personal genomics, plus a narrative of discovering your identity, have laid the foundations for a new kind of asset: DNA as data. It’s just one of many companies that have transformed consumers’ genetic code into one of the most valuable datasets in the world.  

What makes genomic data a contender in the world of alternative assets? It’s non-traditional, illiquid, unique, and evergreen – our DNA doesn’t change. Meanwhile, many hope it could revolutionize drug pipelines and AI-based medical research.   

The global genetic testing market was worth almost $12bn last year and is forecast to top $91bn by 2034. The number of people who have subscribed to direct-to-consumer (DTC) genetic testing services is likely well over 45 million when combining statistics from bigger players 23andMe, Ancestry , and MyHeritage , and smaller players.   

Very different kinds of start-ups are leveraging genomic data to make transformative advancements in research, while still offering individuals ownership and control over their DNA data.     

Seattle-based Truveta , founded in 2020 by a group of 30 US health systems, with a vision to ‘save lives with data’, aims to create the largest and most diverse database of phenotypic and genotypic information ever.      

In January, the company announced that 17 health systems, and corporate backers Illumina and Regeneron, had invested a combined $320mn at a valuation exceeding $1bn for the Truveta Genome Project. Regeneron invested $119.5mn and Illumina invested $20mn.     

Last June, London-based GenomesDAO, a biotech focused on the secure, private, and auditable monetization of genomic data, raised an undisclosed amount of venture funding from Pantera Capital and Modular Capital to accelerate its DTC efforts and develop its Virtual Labs. Its blockchain-based Genomes.io is a ‘decentralized infrastructure of virtual vaults’.     

By Alina Garcia , Associate. 

Global trends create an ‘opportunity-rich’ market for infrastructure investors

Asset managers are hoping to attract more investors to infrastructure funds, driven by several key trends that are reshaping the global economy.    

What’s generating enthusiasm right now?  

‘Many decarbonization and energy transition-related infrastructure companies are still in the building stage,’ Pablo Pallas , Managing Partner at White Summit Capital , tells Preqin First Close. The firm recently held a €350mn first close of its debut fund, targeting emerging businesses seeking $50–150mn.      

‘Most don’t get access to bank financing because it’s still too early or they’re too small, so we’re targeting an opportunity-rich market segment, while also filling a market need.’     

In our new Q&A, Pablo talks about macro trends and opportunities. ‘There’s growing and sustained demand for energy security and energy independence in Europe,’ he says.  

Last week, EQT Group announced a €21.5bn final close for its newest infrastructure fund, citing the ‘transition to a decarbonized and circular economy and the digitalization of society’ as major factors.  

And last month, Copenhagen Infrastructure Partners said it had raised more than €12bn for its latest vehicle, reflecting strong investor interest in large-scale greenfield energy projects.  

‘Europe needs to build things. It needs less reliance on external sources of energy to thrive. And for its economy and industries to be competitive,’ says Pablo. 

Read the full Q&A here.  

Average management fees are lower in private debt than in private equity, VC, and real estate, according to Preqin's Term Intelligence data. But why? Valerie Kor, Financial Writer, explains how GPs are looking for a competitive edge to entice more investors as LPs seek even more transparency about fees and terms. 

How LPs allocate their portfolios across different asset classes has a big impact on returns. Harsha Narayan, Senior Writer, asks industry experts what to consider when constructing an effective asset allocation strategy and how a well-thought-out approach can achieve long-term value creation for investors.  

a) Cats

Around 90% of the genes in domestic cats are similar to humans, according to a 2007 study by Genome Research. Human and cat genomes each have about 20,000 protein-encoding genes, with close to 16,000 of these genes being nearly identical. Do you think we resemble our furry friends?

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