DRI raises $700m for healthcare royalties

DRI Capital, a private investment firm based in Canada, has closed its second Drug Royalty Fund on $701 million, beating its initial target of $500 million.

Atlantic-Pacific Capital was the fund's placement agent.

The fund attracted capital from institutional investors in the US, Canada, Europe, Australia and Asia. DRI raised $240 million for its first drug royalty fund in 2006.

DRI, which focuses on the healthcare sector, has more than $2 billion under management that is used to buy royalties from pharmaceutical and biotechnology companies, research institutes, universities and inventors.

Drug royalties remains a relatively obscure investment area for private equity firms. Paul Capital, the noted secondaries investor, has a fairly robust drug royalties team.