CRG, a healthcare investment firm previously doing business as Capital Royalty L.P., has closed a third healthcare-focused private credit fund with nearly $1.25 billion in capital commitments. The fund, called CRG Partners III L.P., is expected to reach approximately $2 billion in total investible capital, including debt financing.
Fund III received commitments from both existing and new investors, underlining confidence in the firm’s credit-focused investment strategy. The fund exceeded its original fundraising target by nearly 25 percent. Fund III targets investments between $20 million and $300 million in public and private commercial-stage healthcare companies.
CRG, based in Houston, Texas, has committed nearly $900 million of the fund’s capital to more than 16 companies covering: medical devices, tools and diagnostics, biopharmaceuticals, healthcare information technology, and healthcare services sectors. Among those investments include: Omeros Corp. (Nasdaq: OMER), a biopharmaceutical company developing protein therapeutics, receiving a $125 million new credit facility; Specialists on Call Inc., a provider of physician consultations through telemedicine, accepting a $50 million commitment; and Iroko Pharmaceuticals, a pharmaceutical developer of low-dose painkiller drugs, agreeing to a $140 million debt facility.
Investment firms have been busy when it comes to fundraising recently. In Nov. 2016, Carlyle raised a $2.8 billion credit fund for the energy sector and also closed a new collateralized loan obligation (CLO) fund worth $403 million in April 2016. Other fundraising efforts include: Kainos Capital’s closing of a second fund to target consumer goods and food and beverage deals; Arsenal Capital Partners’ closing of a $1.3 billion private equity fund; Chicago-based NXT Capital LLC’s closing a $900 million debt fund; and Monroe Capital LLC’s closing a second credit fund at $800 million. Ropes & Gray LLP acted as legal counsel to Fund III and Probitas Partners served as placement agent.