Asset management company Athyrium Capital Management said today that it and investment management company Neuberger Berman have closed a $2 billion healthcare fund seeking to invest in commercial-stage healthcare companies.
The Athyrium Opportunities Fund III has more than 45 institutional investors including public and private pension funds, endowments, foundations and sovereign wealth funds, New York-based Athyrium said.
“We are excited by the breadth of investment opportunities that will be available to the Fund in the coming years, as the global healthcare sector continues to undergo dramatic transformation driven by disruptive technologies, new business models, industry consolidation, and shifting regulatory priorities. Athyrium Capital’s experience in the healthcare sector, and our ability to provide creative long-term capital solutions, makes us a valued partner for today’s healthcare innovators,” Athyrium Capital managing partner Jeff Ferrell said in a prepared statement.
The fund will look to make investments of between $20 million and $300 million in commercial-stage healthcare companies in North America, Europe, Asia and Australia with a focus across pharmaceuticals, medical products, diagnostics, healthcare services and healthcare IT in both private and public companies.
“Few firms have Athyrium Capital’s breadth and depth of experience in the healthcare sector and as broad a mandate to pursue flexible capital investments, including both equity and debt. The opportunity to partner with high-quality management teams to help fund and drive their companies’ growth continues to be a critical part of our platform’s strategy,” Athyrium Capital partner Jeremy Lack said in prepared remarks.
Athyrium said the fund will focus on companies seeking long-term capital for growth, with flexible investment structuring including credit instruments, preferred and common equity, convertible securities and other hybrid instruments.
“We are grateful for the continued support of our existing investors, and we welcome the addition of several new well-respected institutions to the Fund. We think this is a great time to be investing in the healthcare sector and we look forward to continuing our successful partnership with Athyrium Capital to keep delivering value for our investors over the years ahead,” Neuberger Berman managing director Samuel Porat said in a press release.