Sagard Holdings announces first closing of Sagard Healthcare Royalty Partners
TORONTO, January 9, 2020 - Sagard Holdings ULC (“Sagard Holdings”) today announced the successful first closing of Sagard Healthcare Royalty Partners, LP (“SHRP” or “the Fund”), with commitments totaling approximately US$475 million.
SHRP focuses on royalty investments in the healthcare industry, enabling inventors, research institutions and companies to monetize royalties generated on sales of approved pharmaceutical and medical device products. The Fund also provides non-dilutive financing solutions to commercial-stage biopharmaceutical companies and seeks attractive cash-yielding investment opportunities protected by strong intellectual property that are uncorrelated with the public markets.
SHRP is led by David MacNaughtan, a 25-year veteran of the biopharmaceutical industry and who previously ran the intellectual property investment strategy at the Canada Pension Plan Investment Board ("CPPIB"). Mr. MacNaughtan and his partners, Ali Alagheband and Raja Manchanda, previously worked together at DRI Capital, a healthcare investment manager focused on the royalties asset class.
“We are very pleased with this strong first close for Sagard Healthcare Royalty Partners, and deeply appreciate the support of our anchor investors, who represent truly strategic institutional partners,” said Adam Vigna, Managing Partner and Chief Investment Officer of Sagard Holdings, who spent six years working with Mr. MacNaughtan at CPPIB. “Pharmaceutical royalties are an important new asset class for Sagard Holdings as we continue to scale our platform. I have great confidence in our investment team, led by David, Ali and Raja, and believe we are well-placed to execute on our investment strategy in the years to come.”
Royalty-based transactions are increasingly pursued in the life sciences industry as a means of managing risk and accelerating the returns on innovation. SHRP aims to bring its proven expertise to develop tailored solutions to help research institutions and biopharmaceutical companies maximize value.
The Fund’s closing includes a $75 million capital commitment from Sagard Holdings, in addition to commitments from world-class institutions acting as anchor investors. The Fund remains open for additional commitments through 2020 as SHRP continues to advance its mission to be a premier investor in the life sciences sector.
“The healthcare royalty and non-dilutive financing market remains robust and growing, and SHRP is ideally positioned to capitalize on the opportunity given this significant first close of $475 million. We are excited to engage with inventors, research institutions and commercial-stage biopharmaceutical companies in need of tailored financing solutions to manage risk, accelerate returns on innovation, and grow their businesses,” said David MacNaughtan, Partner at Sagard Holdings and Head of the SHRP team.
SHRP was launched in January 2019 and announced its first transaction on April 1, 2019, when it acquired a portion of The University of Newcastle upon Tyne’s royalty interest in a novel cancer drug, marketed as Rubraca. Rubraca is an innovative targeted therapy approved for the treatment of advanced ovarian cancer patients and is being studied in several additional solid tumor indications.
SHRP has engaged the services of placement agent Park Hill Group to expand marketing efforts with global institutional investors.
About Sagard Holdings
Sagard Holdings is a multi-strategy alternative asset manager with professionals located in Montreal, Toronto, New York, Paris and Southeast Asia. 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 (Sagard SAS, Sagard Capital and Sagard Capital Partners), private credit (Sagard Credit Partners), royalties (Sagard Healthcare Royalty Partners), and venture capital (Portag3 Ventures and Diagram Ventures). Sagard Holdings was founded by Power Corporation of Canada in 2005 as a complement to its global investment holdings.
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