Biotech debt fund breaches $1bn

By Daniel Lanyon on 13th April 2018

Alternative Credit

The investment trust has just raised a further $163.8m making it one of the largest private debt funds listed on the London market.

Biotech debt fund breaches $1bn

Biopharma Credit has raised $163.8m through a new C share issue.

The new raise comes from several institutional backers including $32.25m from Invesco and $5.52m from M&G.

Biopharma Credit, an investment trust in the fast growing private debt space, originally targeted up to $300m. Whilst the fundraise was below target, it is a good result owing to a tougher fundraising environment in 2018 so far, say analysts at Numis Securities.

”We believe this is a good result for Biopharma Credit, despite a target of up to $300m. The fundraising environment has been tough in 2018, and most fundraisings have struggled to reach targets or have been pulled. Investors are typically more willing to back what they already own, demonstrated by Invesco’s commitment,” Numis said.

Biopharma Credit market cap has, as a result of the C Share fundraise, increased to $1.1bn.

Targeting a yield of 7 per cent when fully invested, with a total return of 8-9 per cent, it raised $423.3m at IPO in March 2017. In December 2017 it raised a further $154m via a placing at a 1.5 per cent premium to its net asset value [NAV].

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