DRI Capital

About

DRI Capital is a pioneer and global leader in healthcare investing and was the original innovator of the healthcare royalty market. The firm, originally called Drug Royalty Corporation, was founded in 1992 to purchase royalty streams on pharmaceutical products and to make healthcare equity investments. DRI believes that the concept of royalty investing originated in the Canadian mining sector and was first adapted to the life sciences markets at this time by Drug Royalty Corporation. In 1993, the firm was listed on the Toronto Stock Exchange and remained publicly traded until 2002 when it was purchased by its current owners and taken private.

In 2006, DRI Capital successfully raised $800 million ($240 million in equity and $560 million in debt) for its first managed fund, Drug Royalty I. With Drug Royalty I, DRI completed its transition to a private equity fund manager business model. In 2010, DRI successfully raised $926 million of capital commitments ($701 million in equity for its second managed fund, Drug Royalty II, and $225 million in equity for Drug Royalty II Co-Investment Fund). On September 9, 2013, DRI announced the final closing of its third managed fund, Drug Royalty III, with US $1.45 billion of equity commitments from a global pool of institutional investors. This is the largest healthcare royalty private equity fund ever raised, and gives DRI $3 billion of purchasing power for Drug Royalty III.

As of June 30, 2014, Drug Royalty I, Drug Royalty II and Drug Royalty III have collectively acquired over 50 separate royalty streams from inventors, universities, research institutes, hospitals, biotechnology and global pharmaceutical companies payable on 30 different leading pharmaceutical products. In building this portfolio, DRI led the way with numerous milestone transactions, including the first transaction outside the United States, the first transaction with an individual inventor, the first transaction on a diagnostic, the first transaction on a life science tool and the first transaction involving a bundle of royalty streams. Further, DRI's managed funds have completed more repeat transactions with prior counterparties than any other royalty monetization firms, reinforcing DRI's leading reputation in the industry.

Source: DRI Capital

Strategy

DRI Capital, through its managed private equity funds, seeks to invest in royalty entitlements on healthcare products which are safe, efficacious and medically necessary. DRI Capital’s focus is on products that treat chronic, critical and/or rare diseases and which improve the health and quality of a patient’s life. In addition to the traditional focus on pharmaceutical products, DRI Capital considers investments in royalty entitlements on medical devices, diagnostic products and life science tools and technologies. Products DRI Capital invests in must be either approved by a major regulatory body or in late stage clinical development.

Source: DRI Capital


  • Industry Focus
    Healthcare
  • Year Founded
    1992
  • Address
    100 King St. West, Suite 7250
    PO Box 62
    Toronto, ON M5X 1B1
    Canada
  • Key Personnel
    Behzad Khosrowshahi, President and CEO
    Ali Alagheband, Managing Director
    Chris Anastasopoulos, Chief Financial Officer