Somewhere between venture funding and bank loans is a kind of investment that seems to fly under the radar, but apparently over the last several years has become increasingly popular for biotech companies beyond the startup stage looking for growth capital.
Royalty financing is the vehicle that Capital Royalty L.P. will use to invest its new $805 million fund in healthcare products and technologies. But (sorry startups), it’s not looking for early-stage companies. Capital Royalty says it invests in companies with FDA-approved healthcare products that are generating revenue. These are companies looking to make acquisitions, expand into new markets or develop new products with investments of $20 million to $200 million.