NovaQuest closes pharmaceutical fund on $459m

A 2010 spin-out out of pharmaceutical services company Quintiles, NovaQuest had targeted $500m for its Fund III.

NovaQuest Capital Management has closed its Novaquest Pharma Opportunities Fund III on $459 million, according to a statement.

Raleigh, North Carolina-based NovaQuest launched Fund III in 2010, the same year the NovaQuest unit spun out of biopharmaceutical services company Quintiles to form an independent management company. Fund III had a $500 million target and includes a general partner commitment of about $5 million, according to documents filed with the US Securities and Exchange Commission. 

The fund will provide structured finance solutions to mid- and large-size biopharmaceutical companies. 

“The global biopharmaceutical industry faces many challenges as it seeks to bring new and beneficial medicines and therapies to patients,” Ron Wooten, NovaQuest’s managing partner and chief investment officer, said in the statement. “We believe these challenges and the demand to improve healthcare globally should provide many opportunities for NovaQuest to make investments that both help patients and give our limited partners the chance to earn attractive returns on their investments.”

NovaQuest invested $40 million from the fund in January, backing pharmaceutical company Pharmaxis.

Limited partners in Fund III include pension funds, family offices and a major university endowment, according to the statement. 

Boutique investment bank Mallory Capital Group and placement agent Atlantic-Pacific Capital will receive compensation from the fund, according to the SEC documents.

NovaQuest is led by Wooten and co-founding partners John Bradley, William Robb and Jonathan Tunnicliffe, all of whom previously held senior positions at NovaQuest prior to the spin-out. The NovaQuest unit of Quintiles was formed in 2000.