HealthCare Royalty Partners has closed its fourth fund at $1.83 billion. HealthCare Royalty Partners IV’s investors include pensions, sovereign wealth funds, financial institutions, foundations and family offices. The fund will focus on acquiring royalties and revenue interests generated from commercial biopharmaceutical products and provide debt financing collateralized primarily by commercial-stage assets.
STAMFORD, Conn.–(BUSINESS WIRE)–HealthCare Royalty Partners (“HCR” or the “Firm”), a global healthcare investment firm with $5.5 billion of cumulative capital commitments, today announced the closing on $1.83 billion for HealthCare Royalty Partners IV, L.P. (“Fund IV”) and affiliated entities. Since 2003, HCR’s senior professionals have invested over $3.0 billion in commercial or near-commercial stage biopharmaceutical products through the purchase of royalties, revenue interests and credit instruments. Fund IV, like HCR’s predecessor funds, will seek to continue to provide investors with returns that are non-correlated to the broader equity or credit markets.
“Increasing investor demand for non-correlated, yielding assets aligns well with HCR’s strategy, as evidenced by the capital committed to Fund IV. 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,” commented Clarke B. Futch, Managing Partner and Chairman of the Investment Committee at HCR. He continued, “the persistent capital needs of biopharmaceutical companies to develop and launch products, coupled with record innovation in the biopharmaceutical sector, has made the current environment quite attractive for HCR. We are grateful for the support of Fund IV’s investors and excited about the opportunity ahead.”
HCR welcomed many of its existing investors back into Fund IV as well as new investors representing several of the world’s leading pensions, sovereign wealth funds, financial institutions, foundations and family offices. The strong support from investors in the U.S., U.K., Europe, Australia, Middle East and Africa, demonstrates the growing acceptance of pharmaceutical royalties as a supplement to traditional fixed income / credit / absolute return portfolios.
Fund IV will continue HCR’s strategy of acquiring royalties and revenue interests generated from commercial biopharmaceutical products and providing debt financing collateralized primarily by commercial-stage assets. HCR’s typical investments range from $20 million to $200 million, with sourcing of such opportunities occurring from the Firm’s offices in Stamford (CT), San Francisco, Boston and London. Factors such as the aging of the global population, continued in-licensing of products by larger biopharmaceutical firms and the proliferation of smaller biopharmaceutical firms developing their own products represent secular tailwinds for HCR’s investment strategy going forward.
HCR is also pleased to announce the promotion of the following four individuals to Managing Director: 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. “HCR’s new Managing Directors have meaningfully contributed to the Firm’s long-term success. Their promotions are well-deserved, and we look forward to their continued leadership as HCR invests Fund IV,” commented Mr. Futch.
About HealthCare Royalty Partners
HealthCare Royalty Partners (“HCR”) is a private investment firm that purchases royalties and uses debt-like structures to invest in commercial or near-commercial stage biopharmaceutical assets. HCR has $5.5 billion in cumulative capital commitments with offices in Stamford (CT), San Francisco, Boston and London. For more information, visit www.healthcareroyalty.com.