Capital Royalty said Thursday it has raised $805 million with its second private equity fund. Capital Royalty Partners II was oversubscribed and exceeded its initial fund raising target. Houston-based Capital Royalty invests in healthcare.
Capital Royalty L.P., a pioneer in healthcare investing, today announced the final closing of Capital Royalty Partners II L.P. with $805 million in equity commitments.
Capital Royalty Partners II, the Firm’s second private equity fund, was oversubscribed and exceeded its initial fund raising target. Total investable capital is expected to exceed $1 billion including debt financing facilities available to the Fund. The Fund’s global investor base consists of world-class limited partners, including pension funds, endowments, institutional investors, funds of funds, family offices, and sovereign wealth funds.
Capital Royalty Partners II works directly with leading healthcare companies, research institutions, and inventors to offer highly-customized, non-dilutive growth financing solutions to support product commercialization, pipeline development and other growth opportunities. The Fund has an emphasis on credit-oriented investments in approved and commercialized healthcare products and technologies. It invests on a global basis and primarily targets investments between $20 million and $200 million, though it will maintain the flexibility to lead investments in excess of $200 million. Through earlier closings, the Fund has been actively making investments.
“The high level of investor demand for this fund reflects Capital Royalty’s consistent performance and differentiated investment strategy. Our unique strategy provides our Funds with the most attractive risk-adjusted returns and current cash yields, while maintaining considerable downside protection and minimal correlation to other asset classes. Capital Royalty remains well positioned to meet the growing demand for alternative financing structures in the healthcare industry,” stated Charles Tate, Chairman and Founder of Capital Royalty.
Nathan Hukill, Managing Director of Capital Royalty, commented that, “The Fund is off to an excellent start, having already made several investments that are producing cash distributions for our limited partners. We have developed a robust pipeline of new financing opportunities and will continue our focus on working collaboratively with leading healthcare companies, research institutions, and inventors to develop non-dilutive structured financing solutions that support growth opportunities and deliver returns to our limited partners.”
About Capital Royalty
Founded in 2003, Capital Royalty is a pioneer and innovator in healthcare investing with over $1.3 billion of assets under management. The Firm invests in approved and commercialized healthcare products and technologies protected by strong underlying intellectual property and utilizes a variety of structures including secured debt, royalty bonds, revenue interests, and traditional royalty monetizations. Collectively, the Capital Royalty investment team has more than 140 years of healthcare, private equity, capital markets, and investment banking experience and has completed more than 500 transactions representing $4 billion in capital over the past 10 years.
The Firm is headquartered in Houston, Texas with offices in Boulder, Colorado and New York City. For additional information, please visit www.capitalroyalty.com.
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