The Fund, which is Oaktree’s first dedicated life sciences fund, was oversubscribed said a press release from the investment manager with $172 billion in assets under management.

Oaktree’s life sciences lending fund aims to generate attractive risk-adjusted returns by providing bespoke capital solutions to innovative companies across the life sciences sector globally, with a focus on high-growth subsectors, such as biopharma and medical devices.

Get the week’s top news delivered directly to your inbox – Sign up for our newsletter

“Life sciences is a critical and economically resilient industry that is supported by secular tailwinds, including increasing healthcare spending, record pace of technological innovation, and aging populations across the developed world,” Armen Panossian, head of performing credit at Oaktree, said.

Armen added: “Additionally, while the sector has been traditionally funded largely by equity, thoughtful management teams and investors are increasingly realizing that structured debt and other alternative financing structures such as royalties can play an equally important role in enabling innovative life sciences companies to achieve their growth objectives. This creates a compelling opportunity for lenders like us with the expertise and scale to serve as a strategic partner to life sciences companies, management teams, boards, and equity investors and provide these types of tailored credit solutions with speed, size, certainty, and operational flexibility.”

The fund focuses on lending to companies with specific attributes, including those with diverse product portfolios comprised of late-stage assets targeting difficult-to-treat medical conditions, strong intellectual property, and/or state-of-the-art manufacturing facilities, which, along with careful structuring, provides for adequate risk protection.

Source: Opalesque

Can’t stop reading? Read more