Capital Royalty has held the final closing of its second fund, Capital Royalty Partners II L.P., with $805 million in equity commitments. The fund was oversubscribed and exceeded its initial fund raising target.
“The high level of investor demand for this fund reflects Capital Royalty’s consistent performance and differentiated investment strategy. Our unique strategy provides our funds with the most attractive risk-adjusted returns and current cash yields, while maintaining considerable downside protection and minimal correlation to other asset classes. Capital Royalty remains well positioned to meet the growing demand for alternative financing structures in the healthcare industry,” said Charles Tate, Chairman and Founder of Capital Royalty.
Total investable capital for the new fund is expected to exceed $1 billion including available debt financing facilities. The limited partners of the new fund include pension funds, endowments, institutional investors, funds of funds, family offices, and sovereign wealth funds.
Capital Royalty provides from$20 million to $200 million in non-dilutive growth financings to healthcare companies, research institutions, and inventors to support product commercialization, pipeline development and other growth opportunities. The firm focuses on credit-oriented investments in approved and commercialized healthcare products and technologies. Capital Royalty’s investments take the form of secured debt, royalty bonds, revenue interests, and traditional royalty monetizations. The firm was founded in 2003 and is headquartered in Houston with additional offices in Boulder, CO and New York (www.capitalroyalty.com).
“The fund is off to an excellent start, having already made several investments that are producing cash distributions for our limited partners. We have developed a robust pipeline of new financing opportunities and will continue our focus on working collaboratively with healthcare companies, research institutions, and inventors to develop non-dilutive structured financing solutions that support growth opportunities and deliver returns to our limited partners,” said Nathan Hukill, Managing Director of Capital Royalty.
© 2013 PEPD • Private Equity’s Leading News Magazine • 5-2-13