New global healthcare fund raises $1.8bn

HealthCare Royalty Partners (HCR) announced the closing of its latest fund, HealthCare Royalty Partners IV, with $1.83 billion, with new investors representing several of the world’s leading pensions, sovereign wealth funds, financial institutions, foundations and family offices. The Stamford, Connecticut-based $5.5 billion private debt firm uses debt-like structures to invest in commercial or near-commercial stage biopharmaceutical assets.Fund IV, like its predecessor funds will seed to provide returns that are non-correlated to the broader equity or credit markets. Since 2003, the firm has invested more than $3 billion in commercial or near-commercial stage biopharmaceutical products through the purchase of royalties, revenue interests and credit investments “Increasing investor demand for non-correlated, yielding assets aligns well with HCR’s strategy, as evidenced by the capital committed to Fund IV,” Clarke Futch, managing partner and chairman of the investment committee at HCR. “HCR’s regional sourcing strategy and deep bench of in-house scientists have generated strong results for HCR’s predecessor fund, which we believe will continue for Fund IV.” He said that the current environment is attractive to HCR in that there are persistent capital needs of biopharmaceutical companies to develop and launch products that are coupled with record innovation in the biopharmaceutical sector. On the investor demand side, there has been growing acceptance of pharmaceutical royalties as a supplement to traditional fixed income/credit/absolute return portfolios, officials said. There were also four promotions at the firm to managing director. Promoted were: Carlos Almodóvar, head of investor relations; Dr. Shin Kang, head of research; Andrew Reardon, chief legal officer; and Spencer Schneider, chief compliance officer and intellectual property counsel.

New global healthcare fund raises $1.8bn

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