Paul Capital Halfway To Target On Health Care Fund

Paul Capital has raised $309 million toward its third fund to target investments in the health care industry called Paul Capital Healthcare III, according to a regulatory filing. The fund, formerly known as Paul Royalty Acquisition Fund, seeks commercial-stage healthcare products and investment opportunities. Paul Capital’s health care arm has $1.6 billion under management.

Formed in November of 2006, fund three is nearly halfway to its $650 million target, with commitments from 37 investors. Its prior incarnation raised $656 million in 2003. Prior to that, the fund raised $300 million in 2000.

Despite what looks like slow going for this fund, Paul Capital has had decent success in other aspects of the fundraising market this year, meeting the $455 million target for its fourth private equity fund-of-funds last month, as peHUB reported. Top Tier II, a 2002 vintage, has posted a 1.1x return on CPP Investment Board’s $96 million commitment.

That’s in addition to a new secondaries fund, raised last year and ready to deploy. In the previous story I mentioned that Paul Capital is ramping up its secondaries group with some hires:

In December, the firm hired Sabina Sammartino and promoted Elizabeth Coleon and Guillaume Partiot on its secondaries team. In June 2008, the firm brought consultant Duncan Littlejohn on its secondaries team full time and hired Lucian Wu to head it’s Asia office.

The hiring makes sense since the firm closed its largest ever secondary fund—a $1.65 billion pool—in May of 2008. That fund brought the firm’s total secondary funds under management to $4.2 billion.

Paul Capital is based in New York and San Francisco, with offices in London, Paris, Sao Paolo and Hong Kong. No comment from the firm.