HealthCare Royalty Partners raises $1.5 billion for third fund

The fund is 50 percent larger than the firm’s previous vehicle

Connecticut-based HealthCare Royalty Partners has raised $1.5 billion for its third fund. The fund has been in market since 2013 and beat its target.

The firm’s most recent fund closed on $1 billion in 2011, according to Private Equity International’s research and analytics division.

“Similar to our prior two funds, we will continue to invest in assets across the healthcare spectrum – pharmaceutical, biotechnology, specialty pharmaceutical, and medical device/diagnostics sectors,” Clarke Futch, founding managing director at HealthCare Royalty Partners, tells Private Equity International.

Fund III’s limited partner base includes investors throughout the U.S., Canada, Europe, Australia and the Middle East, representing public and corporate pension funds, sovereign wealth funds, financial institutions, foundations, and endowments.

“We have made three investments from Fund III so far. The most recent was a €45 million investment in Cardiorentis, a Swiss biotech company conducting a Phase III trial for acute heart failure,” Futch says. “The second was a $30 million deal to acquire certain royalty and milestone rights related to the commercialization of Orenitram (treprostinil) Extended-Release Tablets which is marketed by United Therapeutics Corporation.”

The third investment was not disclosed.

In addition to the assets mentioned above, Fund III will also be looking at companies in cardiovascular, diabetes, cystic fibrosis and orphan diseases, Futch added.

The firm is also invested in Healthcare royalties, a market which has seen significant growth in recent years. Based on an HC Royalty’s internal analysis of deal activity, 2014 is outpacing 2013's record-breaking year with $3.3 billion in transaction volume announced through mid-October. Over the past decade, the senior investment team has completed more than 60 royalty investments valued in excess of $2.5 billion.