HOUSTON – January 4, 2017 – CRG, a global healthcare investment firm with more than $3 billion in assets under management, today announced the final closing of CRG Partners III L.P. (together with its parallel investment vehicles, “Fund III”). Fund III reached its hard cap of $1.25 billion of capital commitments from investors, exceeding its original target by 25 percent. Total investable capital for Fund III is expected to approach $2 billion, including debt financing.
“The market opportunity for healthcare private credit investing remains strong,” said Nathan Hukill, president of CRG. “Fund III provides us with additional capital to partner with management teams and offer highly-customized, minimally-dilutive growth financing solutions. Management teams have increasingly turned to debt financing as an alternative source of capital as they have recognized the high cost and dilution associated with equity financing markets.”
Fund III experienced strong demand from both existing and new investors, demonstrating confidence in CRG’s proven credit-focused investment strategy. Fund III secured commitments from a diverse mix of global institutional investors across North America, the Middle East, Europe and Asia. Participants in Fund III include public and private pensions, university endowments, sovereign wealth funds, insurance companies, wealth management firms and family offices. Investors who have participated in previous CRG funds increased their commitments by 35% in Fund III, further reinforcing conviction in CRG’s model, management team and historical returns.
“CRG appreciates the support of our longstanding partners and welcomes several new institutional investors that maintain stringent due diligence and return criteria,” said Mike Weinmann, managing director of CRG. “Investors were drawn to Fund III based on CRG’s compelling risk-adjusted returns and cash yields, coupled with considerable downside protection and minimal correlation to other asset classes.”
Fund III is targeting investments between $20 million and $300 million in public and private commercial-stage healthcare companies. The firm’s strategy is focused on companies that are commercializing innovative products, technologies, and services that address significant unmet medical needs. Based on growing demand for CRG’s customized and flexible financing solutions, Fund III has committed more than $900 million of capital across 16 public and private, commercial-stage healthcare investments since its initial closing. Fund III has built a diverse portfolio to date, including investments in the medical devices, tools and diagnostics, biopharmaceuticals, and healthcare IT and services sectors.
Ropes & Gray acted as the legal counsel to Fund III, and Probitas Partners served as placement agent.
Founded in 2003, CRG (previously known as Capital Royalty L.P.) is a healthcare-focused investment firm that delivers pioneering growth capital financing solutions to the global healthcare industry. With over $3 billion of assets under management across 47 healthcare investments, CRG provides growth capital primarily through structured debt and senior secured loans. CRG works across the spectrum of healthcare products, technologies, and services and targets investment sizes ranging between $20 million and $300 million. The firm partners with innovative, commercial-stage healthcare companies that address large, unmet medical needs who are seeking flexible financing solutions with a committed, value-add partner to achieve their growth objectives. CRG is headquartered in Houston, Texas with offices in Boulder, Colorado and New York. For additional information, please visit www.crglp.com.
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