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Athyrium Capital Management and Neuberger Berman close USD2bn healthcare fund

Athyrium Capital Management, an asset management company focused on opportunities in the global healthcare sector, and Neuberger Berman, have closed Athyrium Opportunities Fund III, which seeks to make capital investments in commercial-stage healthcare companies.

Athyrium Opportunities Fund III closed at approximately USD2.025 billion. Including the new fund, Athyrium Capital now advises funds with committed capital in excess of USD3.7 billion.
The Fund’s global investor base comprises more than 45 institutions, including public and private pension funds, endowments, foundations and sovereign wealth funds, a number of which also invested in the first Athyrium Opportunities Fund, which closed in March 2013, and Athyrium Opportunities Fund II, which closed in May 2015.
Athyrium Opportunities Fund III seeks to make investments of USD20 million to USD300 million in commercial-stage healthcare companies in North America, Europe, Asia and Australia. The Fund invests across the healthcare sector including pharmaceuticals, medical products, diagnostics, healthcare services and healthcare information technology. Financings by the Fund can be made in both public and private companies.
The Fund focuses on healthcare companies with strong management teams who are seeking long-term capital to grow their businesses. The Fund has significant flexibility in structuring investments – possible investments include credit instruments, preferred and common equity, convertible securities and other hybrid instruments, royalties and royalty-backed debt and/or other structured instruments – allowing the implementation of creative financing solutions to meet capital needs. The Fund has made seven investments to date, representing approximately 20 per cent of committed capital.
“We are excited by the breadth of investment opportunities that will be available to the Fund in the coming years, as the global healthcare sector continues to undergo dramatic transformation driven by disruptive technologies, new business models, industry consolidation, and shifting regulatory priorities,” says Jeff Ferrell, Managing Partner of Athyrium Capital Management. “Athyrium Capital’s experience in the healthcare sector, and our ability to provide creative long-term capital solutions, makes us a valued partner for today’s healthcare innovators.”    
“Few firms have Athyrium Capital’s breadth and depth of experience in the healthcare sector and as broad a mandate to pursue flexible capital investments, including both equity and debt,” says Jeremy Lack, Partner of Athyrium Capital. “The opportunity to partner with high-quality management teams to help fund and drive their companies’ growth continues to be a critical part of our platform’s strategy.”
NB Alternatives Advisers (NB Alternatives), the advisor to Neuberger Berman’s private equity business, is a Sub-Advisor to the Fund. NB Alternatives and Athyrium Capital formed a strategic relationship in 2009 and have worked together to raise, deploy and manage Funds I, II and III, as well as a legacy portfolio of structured investments across the healthcare sector.
“We are grateful for the continued support of our existing investors, and we welcome the addition of several new well-respected institutions to the Fund,” says Samuel Porat, Managing Director, Neuberger Berman. “We think this is a great time to be investing in the healthcare sector and we look forward to continuing our successful partnership with Athyrium Capital to keep delivering value for our investors over the years ahead.”

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