Neuberger Berman Group and healthcare specialist Athyrium Capital Management have closed a private credit fund focused on that sector at $507 million.
The Athyrium Opportunities Fund will make $25-$75 million financings in small- to medium-sized healthcare companies in the U.S., Europe and Asia. The fund focuses on partnering with management teams of pharmaceutical, medical device and diagnostics companies with commercial-stage products and services looking for long-term capital to grow their businesses. To date, it has made five investments representing over one-fifth of committed capital.
The fund is the latest result of a strategic relationship formed by Neuberger Berman's alternatives business and Athyrium in 2009 and will be jointly managed by the two firms. Its senior investment team consists 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).
The new vehicle will seek to generate current income and capital gains for its investors through a variety of investments: loans, notes, royalties or royalty-backed debt, preferred stock, convertible or other structured securities.
"Client response to the Athyrium Opportunities Fund has been high and we're thankful for the trust our investors have placed in us," said Porat, in a statement. "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."
The fund's global investor base is comprised of more than 35 institutional investors, including public and private pensions, insurance companies, funds-of-funds, endowments and foundations.
Neuberger Berman Group had $216 billion in assets under management as of March 31, 2013 and Athyrium Capital Management over $600 million.