As Paul Capital struggles through its latest fundraise, four senior executives from its pharmaceutical royalties team have left to join hedge fund Visium Asset Management, where they will manage out existing Paul Capital Healthcare assets.
Paul Capital executives Ken Macleod, promoted to partner in 2008, John Leone, who joined as a partner in 2007, Julie Rahman and David Lippman all started at Visium on 1 June. Along with managing existing Paul Capital funds, the team also will explore pharmaceutical royalty opportunities for Visium.
Paul Capital Healthcare raised three funds, with the most recent closing in 2007 on around $350 million, according to a person with knowledge of the firm. Fund II closed on $650 million in 2003, and Fund I closed on around $300 million in 2000. All the funds are fully deployed, according to the person with knowledge of the firm.
The pharmaceutical royalties group was established in 1999 and had been managing as much as $1.6 billion in equity capital and debt facilities, according to Paul Capital’s web site. The strategy focused on late stage and commercial stage healthcare products and investment opportunities in North America, Europe and Asia.
Paul Capital, meanwhile, has collected at least $145 million toward its $2 billion target on its Fund X, as well as capital in feeder funds targeting international and emerging markets, according to filings with the US Securities and Exchange Commission.
As the fundraising grinds on, the firm also has lost some top executives. Bryon Sheets decided to take a step back from daily operations earlier this year, retaining a title of senior advisor. Business development manager Anne Pearce and principal Richard Chow also left the firm this year.