SLR Capital Partners has secured over $480 million for its healthcare private debt fund. SR HCLF is focused on providing secured loans to healthcare businesses, including companies developing innovative drug, medical device, and technology solutions.
NEW YORK, July 28, 2021 /PRNewswire/ — SLR Capital Partners, LLC (“SLR” or “SLR Capital Partners”) today announced initial closings of its healthcare direct lending funds (together “SLR HCLF” or the “Fund”), securing over $480 million in equity commitments, reaching SLR’s initial target. With anticipated leverage, total available capital for SLR HCLF is expected to be over $1 billion. SLR HCLF, which seeks to capitalize on SLR’s expertise and strong presence in healthcare lending, furthers the firm’s strategy of providing financing solutions through its cash flow and specialty finance investment strategies.
The Fund is focused on directly originated first lien senior secured loans to healthcare businesses, including companies developing innovative drug, medical device, and technology solutions. SLR HCLF will capitalize on the need for continued innovation, efficiency, and scale across the healthcare industry, which has been accelerated by the COVID-19 pandemic. The sector, which accounts for 18% of U.S. GDP, continues to attract significant financial sponsor and venture capital interest, creating a sizeable market opportunity for the Fund.
SLR Capital Partners’ experience and broad healthcare investment platform, which includes healthcare cash flow, life science, and asset-based healthcare lending, uniquely positions the firm to underwrite senior secured investments as a partner of choice for healthcare focused private equity and venture capital firms.
The Fund has secured commitments from a range of pension, wealth management, and family office investors. SLR HCLF began investing during the first quarter of 2021 and expects to hold its final closing in February 2022, or earlier if the Fund’s equity commitments reach $800 million. SLR currently intends to accept commitments to the Fund until that time.
“We are pleased with the early success of our fundraising efforts for SLR’s first dedicated healthcare investment vehicle,” said Bruce Spohler, Co-Founder of SLR Capital Partners. “We appreciate our investors’ confidence in our platform and believe that their interest in the Fund reflects the strength of our healthcare team.”
“Since 2006, SLR has invested approximately $2.5 billion in first lien healthcare cash flow and life science loans. Our healthcare team’s distinguished track record, significant experience through credit cycles, industry knowledge, and deep relationships with healthcare-focused equity investors makes SLR ideally positioned to execute this strategy,” said Michael Gross, Co-Founder of SLR Capital Partners.
About SLR Capital Partners
SLR Capital Partners is an SEC-registered investment adviser that primarily invests in leveraged, U.S. middle market companies in the form of cash flow and asset-based senior secured investments. Currently, SLR Capital Partners manages over $8 billion of investable capital, including potential leverage, across its public and private business development companies (“BDCs”), private credit funds and separately managed accounts, including serving as the investment adviser to two publicly-traded BDCs, SLR Investment Corp. (Nasdaq: SLRC) and SLR Senior Investment Corp. (Nasdaq: SUNS).
Since its formation in 2006, SLR Capital Partners’ platform has invested over $14 billion in approximately 1,400 different portfolio companies with approximately 250 private equity sponsors. The platform was founded by Michael Gross and Bruce Spohler, who each have over 30 years of investment experience through multiple credit cycles.