A New Round of Investment from Capital Royalty for Biotech and Healthcare Industries
On May 2, 2013, Capital Royalty announced that it had gathered an $805 million investment fund to back a new round of loans and royalty deals with biotechs, pharma and other healthcare companies if they are looking for other financing
For example, Capital Royalty had its largest investment for TriVascular that develops novel endovascular aortic repair (EVAR) stent graft systems. Capital Royalty also agreed to a $30 million term loan facility with Tandem Diabetes Care. Tandem makes and sells an FDA-approved insulin pump.
Capital Royalty was founded by Charles Tate in 2003. It launched its first fund in 2005 to work with healthcare companies and institutions to monetize their royalty streams. In early 2009, Capital Royalty expanded its investment team to further strengthen the firm’s leadership expertise in healthcare investing, capital markets, and fixed income structures. It is interested in the business segment of Pharmaceuticals, Biotechnology, Drug delivery technologies, Diagnostics, Medical devices etc.
As venture capital investments continue to decline in life sciences, it seems likely that more companies would be willing to explore royalty financing.