Investment Trust Insider on BioPharma Credit

Investment Trust Insider on BioPharma Credit

James Carthew: don’t let Biopharma’s slow start give you the wrong impression (title by Citywire!!)

This week I’m revisiting Biopharma Credit (BPCR) which I last wrote about at the end of March, when it listed having raised £610 million. As things stand, it still holds the top slot for the largest new issue of 2017. It is still early days though, given the fund still had 66% of its assets in cash at the end of August. Unfortunately, that is higher than the roughly 56% in cash that the fund had when it first listed.

Biopharma Credit purchased a seed portfolio at launch, comprising both a $160 million stake in Biopharma III Holdings (a limited partnership run by the manager) and a $232 million credit agreement with RPS Biopharma Investments. Seed portfolios are a good idea as they are a way of hitting the ground running.

Depomed, which was Biopharma Credit’s largest underlying investment, prepaid $100 million… read more here