The CEO of Novo Holdings has warned that his $160 billion fund will slow down investment activity until the dust settles after the Trump administration’s tariff blitz.

Trump’s attack on global trade—and fast retreat from his initial tariffs—has left investors uncertain about where the economy is heading. That could make life hard for investors such as Novo Holdings. The fund, which is best known as the controlling shareholder of Novo Nordisk, deployed (PDF) 34 billion Danish krone ($5.2 billion) in life sciences last year. Now, Novo Holdings CEO Kasim Kutay is pumping the brakes.

“Until there is more clarity on the prospects for economic growth, we will slow down our investment activities,” Kutay told Bloomberg. “We’re in the midst of uncharted waters.”

The shift in Novo Holdings’ approach could have implications for biotechs that are seeking to raise cash. Last year was one of the most active years in the 25-year history of Novo Holdings’ venture investments group, which has pumped money into biotechs including Alentis Therapeutics, Amolyt, Edgewise, Numab and Vaxcyte.

Novo Holdings’ venture portfolio was valued at 16 billion Danish krone ($2.4 billion) at the end of 2024. Around two-thirds of the 60 companies in the venture portfolio are private. Novo Holdings had planned to exit some of the assets this year but those actions could now be pushed to 2026.

“I mean, who’s going to IPO an asset in this environment? Unless you have to, it’s probably not advisable,” Kutay said. “The view on interest rates, which is a key barometer and a driver of how and when to invest, is all over the place.”

Kutay’s comments come shortly after Roche’s CEO Thomas Schinecker said tariffs could make it “more difficult to make financial sense of any M&A deals.” Merck & Co. CEO Rob Davis also said that “clearly what’s happening does make it more complex to get things done because [of] the uncertainty everyone is wrestling with.”