SLR Capital Partners closed its healthcare direct lending funds (SLR HCLF), securing more than $480 million in equity commitments and reaching its initial target. With anticipated leverage, total available capital for SLR HCLF is expected to be more than $1 billion.
SLR HCLF, which seeks to capitalize on SLR Capital Partners’ expertise and strong presence in healthcare lending, furthers the firm’s strategy of providing financing solutions through its cash flow and specialty finance investment strategies.
The fund is focused on directly originated first lien senior secured loans to healthcare businesses, including companies developing innovative drug, medical device and technology solutions. SLR HCLF will capitalize on the need for continued innovation, efficiency and scale across the healthcare industry, which has been accelerated by the COVID-19 pandemic. The sector, which accounts for 18% of U.S. GDP, continues to attract financial sponsor and venture capital interest, creating a sizeable market opportunity for the fund.
The fund has secured commitments from a range of pension, wealth management and family office investors. SLR HCLF began investing during Q1/21 and expects to hold its final closing in February 2022 or earlier if the fund’s equity commitments reach $800 million. SLR Capital Partners currently intends to accept commitments to the fund until that time.
“We are pleased with the early success of our fundraising efforts for SLR’s first dedicated healthcare investment vehicle,” Bruce Spohler, co-founder of SLR Capital Partners, said. “We appreciate our investors’ confidence in our platform and believe that their interest in the fund reflects the strength of our healthcare team.”
“Since 2006, SLR has invested approximately $2.5 billion in first lien healthcare cash flow and life science loans. Our healthcare team’s distinguished track record, significant experience through credit cycles, industry knowledge and deep relationships with healthcare-focused equity investors makes SLR ideally positioned to execute this strategy,” Michael Gross, co-founder of SLR Capital Partners, said.
