HealthCare Royalty Partners Raises $1 Billion
Establishes Second Fund Dedicated to HealthCare Royalty Investments
STAMFORD, CT – January 5, 2012 – HealthCare Royalty Partners (“HC Royalty”), a global healthcare investment firm, today announced the closing of HealthCare Royalty Partners II, L.P. (HC Royalty II). With approximately $1 billion in new capital commitments, HC Royalty will sustain its broad strategy of investing in traditional passive royalties, Synthetic royalties® and structured financings. HC Royalty exceeded the initial target for HC Royalty II by more than 75 percent.
“With a large amount of fresh capital and a healthy pipeline of financing opportunities and royalty asset sales, we believe we are well positioned to capitalize on this growing multi-billion dollar market opportunity,” commented Clarke B. Futch, Founding Managing Director at HC Royalty.
Similar to its first fund, HC Royalty will target investments between $20MM-$100MM in the U.S., Europe and Asia. The two main categories for capital investments include commercial stage biopharmaceutical and medical device companies in need of growth capital, and universities/inventors looking to monetize product interests
“Increased demand for alternatives to traditional debt or equity by both companies and royalty owners will continue to drive this finance category going forward,” further commented HC Royalty Founding Managing Director Todd C. Davis.
Since raising HC Royalty I in 2008, HC Royalty has made a total of 20 investments in 17 products including Lexiva® (GlaxoSmithKline), Cetrotide® (Merck Serono), Myozyme® (Genzyme, a Sanofi Company), Qutenza® (Astellas Pharma), Oracea® (Galderma) and KAMRA® inlay (AcuFocus). During the second half of 2011, HC Royalty closed eight (8) deals including product focused investments with Dyax Corp (DYAX), Stereotaxis, Inc. (STXS) and Zogenix (ZGNX), and royalty monetizations with several universities. The Firm has continued to strengthen its team, adding experienced investment, financial, legal and operations professionals under the leadership of co-founders Gregory B. Brown, M.D., Todd C. Davis and Clarke B. Futch.
In addition to existing HC Royalty limited partners, HC Royalty II LP’s consist of a world-class list of public and corporate pension funds, financial institutions, insurance companies, funds-of-funds and university endowments.
Credit Suisse Securities (USA) LLC acted as exclusive financial advisor/placement agent and Goodwin Procter LLP as legal counsel.
About HealthCare Royalty Partners
Founded in 2007, HealthCare Royalty Partners is a global healthcare investment firm with over $1.5 billion of capital under management. The Firm specializes in structured financing solutions for the life sciences industry. For more information, visit www.healthcareroyalty.com.
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