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INVESTMENT FUNDS

Capital Royalty Raises $805 Million Fund

Firm says investible capital to exceed $1 billion in fund.

DANIEL S. LEVINE

The Burrill Report

“he Fund is off to an excellent start, having already made several investments that are producing cash distributions for our limited partners.”

Capital Royalty, a private equity firm offering alternative financings in healthcare, said it closed an $805 million fund.

The fund, the firm’s second private equity fund, is expected to have in excess of $1 billion in investible capital including debt facilities available to it. The firm did not disclose specific investors in the fund, which it said includes pension funds, endowments, institutional investors, funds of funds, family offices, and sovereign wealth funds.

Capital Royalty offers non-dilutive financing to pharmaceutical, biotechnology, diagnostics, medical device, and drug delivery technology companies, as well as to research institutions, and inventors to support product commercialization, pipeline development, and other opportunities.

It said the fund emphasizes credit-oriented investments in approved and commercialized healthcare products and technologies. It invests on a global basis and primarily targets investments between $20 million and $200 million. Through earlier closings, the fund has already been making investments.

The transactions announced to date in the new fund include a $20 million term loan and revenue interest financing agreement with the Canadian biopharmaceutical Bioniche Life Sciences, a term loan facility for up to $35 million for the transdermal drug delivery company Corium, a $30 million term loan facility with up to an additional $15 million tied to milestones to the medical device company Tandem, and a term loan facility for an undisclosed amount described only as its biggest commitment to date to the medical device company TriVascular.

“The Fund is off to an excellent start, having already made several investments that are producing cash distributions for our limited partners,” says Nathan Hukill, managing director of Capital Royalty.



May 03, 2013
http://www.burrillreport.com/article-capital_royalty_raises_805_million_fund.html

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