Houston, Oct. 18, 2016 -- CRG, a global healthcare-focused investment firm supporting innovative healthcare companies, today announced cumulative financing commitments of $458 million across eight public and private, commercial-stage healthcare companies since the beginning of 2016.
"Over the last 12 months, we have continued to experience a significant uptick in financing activity with cumulative commitments of over $650 million," said Nate Hukill, President of CRG. "Additionally, we have deployed more than $2.0 billion to public and private commercial-stage healthcare companies since 2009, generating attractive risk-adjusted returns for our institutional partners. This momentum is a testament to the investment team's disciplined execution of our proven credit-focused investment strategy."
In developing its portfolio, CRG's team has sought to underwrite senior secured loans and invest in companies that are on the forefront of three dominant trends within healthcare: increasing focus on healthcare cost reduction, the rise of personalized medicine, and shifting demographics, including aging populations and increased obesity rates in developed economies. As the firm continues to execute on its strategy, CRG has also expanded its reach across the healthcare industry to support pharmaceutical, medical device, diagnostic, and healthcare services and IT companies that help address major unmet needs. CRG has experienced a noticeable increase in demand for financings within these subsectors, especially amongst larger, more mature companies, as average initial investment sizes have increased by over 50 percent for the firm's latest fund.
"Demand for long term growth capital in the form of structured debt is strong as healthcare equity markets remain volatile and lag the general indices," commented Luke Düster, Managing Director at CRG. "To meet this need, we've assembled a strong healthcare investing platform with a deep bench of investment talent and significant, long-term financial resources from our institutional partners, enabling us to identify high quality investment opportunities. This platform provides us with increased flexibility to execute larger financings, up to $300 million per investment, and work quickly and efficiently to close new financings."
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 nearly $3.0 billion of assets under management across 42 healthcare investments, CRG provides growth capital to healthcare companies 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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This release does not constitute an offer to sell or buy any securities and may not be used or relied upon in connection with any offer or sale of securities. It does not constitute a solicitation of clients and may not be used or relied upon in connection with any solicitation of clients. This release is qualified in its entirety by reference to the offering materials of a specific investment opportunity. Neither the Fund nor CRG makes any representation or warranty, either express or implied, as to the accuracy, completeness or reliability of the information contained in this release. Statements in this release are made as of the date hereof unless stated otherwise herein, and the delivery of this release at any time shall not under any circumstances create an implication that the information contained herein is correct as of any time subsequent to such date. Neither the Fund nor CRG has any obligation to update the information contained in this release, including in the event that any such information becomes inaccurate. No person has been authorized to give any information or to make any representation concerning the matters in this release other than the information explicitly contained in this release, and, if given or made, such information or representation must not be relied upon as having been authorized. CRG and its affiliates reserve the right to modify any of the terms of any offering.
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