Neuberger Berman closes healthcare credit fund
Neuberger Berman Group and Athyrium Capital Management have closed the Athyrium Opportunities Fund LP, a private credit fund that seeks to invest in income-generating structured investments in the global healthcare sector, at $507m.
Athyrium Opportunities seeks to make $25m-$75m financings in small- to medium-sized healthcare companies in the US, Europe and Asia.
The fund focuses on partnering with management teams of pharmaceutical, medical device and diagnostics companies with commercial-stage products and services who are looking for long term capital to grow their businesses.
It seeks to generate current income and capital gains and has significant flexibility in structuring its investments. Possible transaction structures include loans, notes, royalties or royalty-backed debt, preferred stock, convertible or other structured securities.
The fund, jointly managed by Neuberger Berman’s alternatives business and Athyrium Capital Management, has made five investments to date representing over 20% of committed capital.
NB Alternatives and Athyrium Capital Management formed a strategic relationship in 2009 to source, close and manage structured investments in the healthcare sector. Since then, the team has completed more than a dozen transactions.
The investment team is comprised of co-head Jeffrey Ferrell, founder and managing partner of Athyrium Capital Management; co-head Samuel Porat, managing director at NB Alternatives; and Laurent Hermouet and Richard Pines, partners at Athyrium Capital Management.
“Client response to the Athyrium Opportunities Fund has been high and we’re thankful for the trust our investors have placed in us,” said Samuel Porat.
“Our aim is to create a diversified portfolio of investments that can generate relatively high current income while also offering a level of downside protection commensurate with fixed income investments.”
Investors include more than 35 institutional investors, including public and private pensions, insurance companies, funds-of-funds, endowments and foundations.
“Small- and medium-sized companies often have limited access to the capital markets and other sources of financing, and the Athyrium Opportunities Fund offers these companies an attractive alternative for their capital needs while limiting potential equity dilution,” said Ferrell.
“Our goal is to customize capital solutions that meet our investment objectives while providing flexible and creative capital solutions to the industry. Our investment team has its roots in the private equity business and this informs how we approach our relationship with portfolio company management.”
Athyrium Capital Management, LLC is an SEC-registered asset management company formed in 2008 to focus on investment opportunities in the global healthcare sector. It invests across all healthcare sectors including biopharma, medical devices and products, and healthcare services.
Athyrium has over $600m under management as of March 31, 2013. The firm’s investors include public and corporate pension funds, charitable endowments, insurance companies, funds-of-funds, family offices, and university endowments.