CPE News (2/18/2021) – Sagard Holdings Inc. has held final close for Sagard Healthcare Royalty Partners, LP (SHRP) with total capital committment of US $725 million.
Sagard Healthcare Royalty Partners was launched by Sagard in 2019, with an original target fundraise of $600 million. The final closing resulted in aggregate commitments of significantly in excess of the Fund’s targeted size, demonstrating strong investor enthusiasm.
Sagard Healthcare Royalty Partners held an initial close in January 2020 with $475 million in commitments including US $75 million from Sagard Holdings.
Sagard Healthcare Royalty Partners is being managed by Partner & Head of Sagard Royalty Partners, David MacNaughtan, and Partners, Ali Alagheband and Raja Manchanda.
Sagard Healthcare Royalty Partners invests in approved and commercialized biopharmaceutical products, diagnostics, and medical devices globally. The Fund also provides financing to commercial-stage biopharmaceutical companies and seeks investment opportunities in assets protected by strong intellectual property.
photo credit: Sagard Holdings
News Release
Sagard Healthcare Royalty Partners closes $725 million first fund
-Final close significantly exceeds target fund size with participation from new institutional investors, including a leading sovereign wealth fund and several pension funds –
TORONTO – Sagard Holdings Inc. (“Sagard”) today announced the final closing of Sagard Healthcare Royalty Partners, LP (“SHRP” or “the Fund”) with commitments totaling approximately US$725 million. SHRP was launched by Sagard in 2019, with an original target fundraise of $600 million. The final closing resulted in aggregate commitments of significantly in excess of the Fund’s targeted size, demonstrating strong investor enthusiasm.
SHRP invests in approved and commercialized biopharmaceutical products, diagnostics, and medical devices globally. The Fund also provides financing to commercial-stage biopharmaceutical companies and seeks investment opportunities in assets protected by strong intellectual property.
New limited partners committing funds to this round join strategic anchor investors who participated in the Fund’s first close of $475 million.
“In two years, David MacNaughtan and his colleagues have raised $725 million and assembled an enviable group of well-regarded investors,” said Adam Vigna, Managing Partner and Chief Investment Officer of Sagard. “Royalty monetization is an attractive asset class for Sagard, particularly given the growth of the global pharmaceuticals market and lack of correlation with the broader capital markets. SHRP is a key pillar in our portfolio of investment businesses.”
“The current global pandemic certainly highlights the importance and benefits of innovation in the biopharmaceutical industry. We are seeing more and more interest in alternative financing solutions for biopharmaceutical companies and research institutes and we believe SHRP is now very well placed to take advantage of the opportunities we are seeing,” said David MacNaughtan, Partner at Sagard and Head of the SHRP team. “I want to thank my partners and particularly our LPs for this vote of confidence as we build for the future with a substantial pool of capital.”
About Sagard Holdings
Sagard Holdings is a multi-strategy alternative asset manager with professionals located in Montreal, Toronto, Calgary, New York, San Francisco, Paris and Singapore. Sagard looks to generate attractive returns by matching investment opportunities with flexible capital solutions and pairing entrepreneurs with teams that have deep industry knowledge. Sagard develops long-term partnerships and empowers the growth of its investments through a unique global network of portfolio companies, limited partners, advisors and other valued relationships. Today, Sagard invests across four asset classes: private equity, private credit, healthcare royalties, and venture capital. Sagard Holdings is a member of the Power Corporation of Canada group of companies. For more information about Sagard, visit sagardholdings.com