Cowen Healthcare Royalty Partners has closed its debut fund with over $500 million in capital commitments. The group has launched last year, and invests in commercial and near-commercial stage healthcare products and companies through the purchase and monetization of passive royalties and the creation of synthetic royalties.
Cowen Healthcare Royalty Partners (“CHRP”) and Cowen Group, Inc. (Nasdaq: COWN) today announced the closing of Cowen Healthcare Royalty Partners, L.P. (the “Fund”) with capital commitments in excess of $500 million, reaching the Fund's cap. This is the first investment fund raised by CHRP since the firm was launched in January 2007. The Fund was significantly oversubscribed, and substantially exceeded its initial target size of $350 million, representing one of the largest inaugural healthcare-focused private equity funds ever raised.
CHRP makes long-term investments in commercial and near-commercial stage healthcare products and companies worldwide through the purchase and monetization of passive royalties, the creation of Synthetic Royalties(SM), and investments in royalties combined with equity or debt securities. The Fund targets investments between $20 – $100 million across a diversified portfolio of products and therapeutic areas. CHRP's unique investment approach and flexible fund structure enable the Fund to offer healthcare companies a variety of financial options in order to fund a commercial product launch or a new development opportunity; acquire a new product or technology; or otherwise unlock unrealized value.
The CHRP team is led by Gregory Brown, M.D., Todd C. Davis and Clarke B. Futch, three experienced healthcare and investment professionals who have invested close to $600 million together, including more than $80 million on behalf of the Fund in the first half of 2008. This leadership team has a proven track record of structuring long-term strategic financing partnerships with leading biopharmaceutical and medical device companies.
In addition to an anchor commitment by Cowen Group, Inc. the Fund's limited partner base consists of a world-class list of investors, including public and corporate pension funds, financial institutions, insurance companies, funds-of-funds and university endowments. Eleven of the Fund's investors collectively account for more than $470 million in commitments. Selected investors include affiliates of OMERS Capital Partners, Crestline Management, Nordea, Strategic Investment Group, New York Life Insurance Company, and The Travelers Companies.
CHRP was advised by Credit Suisse Securities (USA) LLC as financial advisor/placement agent and Goodwin Procter LLP as legal counsel.
About Cowen Group Inc.
Cowen Group, Inc., through its operating subsidiaries, provides investment banking, equity research, sales and trading, asset management and alternative asset management services to companies and institutional investor clients in the healthcare, technology, telecommunications, aerospace and defense, consumer and alternative energy sectors. Our asset management business includes teams based in the
About Cowen Healthcare Royalty Partners
Cowen Healthcare Royalty Partners (CHRP), an affiliate of Cowen Group, Inc., is a healthcare private equity firm with over $500 million under management. The firm invests principally in commercial-stage biopharmaceutical and medical device companies through the purchase of royalty or Synthetic Royalty(SM) interests, debt and equity. CHRP's investment team has over 90 years of healthcare related experience including principal investing, structured finance, healthcare industry senior management, Wall Street research and consulting, scientific and clinical experience. For more information visit www.cowenroyalty.com.