DRI Healthcare nabs $95m of preferred securities from investor group

• The investor group includes EdgePoint Wealth Management, Alberta Investment Management Corp and FAX Capital Corp
• DRI raised deployment target for the five years ending 2025 to between $850m and $900m
• Since its founding, DRI Capital has deployed more than $2.5 billion, acquiring more than 60 royalties on 40-plus drugs

DRI Healthcare Trust (DRI) has secured $95 million of preferred securities from an investor group that includes EdgePoint Wealth Management, Alberta Investment Management Corp and FAX Capital Corp.

DRI, a healthcare royalty investment firm, is managed by DRI Capital.

The firm has also raised its deployment target for the five years ending 2025 to between $850 million and $900 million, from $650 million to $750 million.

DRI has deployed $381.5 million with potential future performance-based milestones and options to deploy up to $76.0 million, for total potential deployment in our transactions of up to $457.5 million, since its initial public offering.

“We have an exciting opportunity to execute royalty transactions on high quality therapeutics. This is driven by the dislocation in biotech capital markets and the capital needed to fund ground-breaking research in the life sciences,” said Behzad Khosrowshahi, chief executive officer of DRI, in a statement. “This financing will give us the ability to execute on a larger portion of our pipeline and to drive value for our partners and our unitholders.”

DRI Capital is a healthcare royalty private equity firm. It is headquartered in Toronto and manages assets worth $2 billion. Since its founding in 1989, the firm has deployed more than $2.5 billion, acquiring more than 60 royalties on 40-plus drugs.

Scotia Capital served as the financial advisor and private placement agent, and Osler, Hoskin & Harcourt acted as legal advisor to DRI.