London Stock Exchange welcomes today BioPharma Credit, a closed ended investment company focused on the life sciences industry, to the Specialist Fund Segment of the Main Market. BioPharma Credit raised gross proceeds of $762 million through its IPO, surpassing its initial $300 million target. It is the first London listed fund to specialise in debt financing for the life sciences industry, highlighting the global investor interest in UK life sciences and the strength of London’s fund industry.
BioPharma Credit is the fourth fund to list on London Stock Exchange in 2017, demonstrating London’s attractiveness to international fund managers, particularly from the US. To date, over £2.5 billion has been raised in initial and follow-on capital raisings by London listed funds, more than a 100 per cent increase year-on-year.
Most notable is the increasing diversified nature of the funds choosing to list and raise follow-on capital in London, from UK, Irish and international infrastructure, renewable and property specific funds to generalist issuers. High profile issuances in London over the past 12 months have included Vietnam-focused investment management company, Dragon Capital, listing its flagship $900m fund, Vietnam Enterprise Investments Ltd and Civitas Social Housing raising £350 million, becoming the first real estate investment trust focussed on social housing to list on London Stock Exchange.
Nikhil Rathi, CEO, London Stock Exchange plc:
“London Stock Exchange congratulates Pablo Legorreta and his team on this milestone transaction.
Welcoming BioPharma Credit to our markets today is another vote of confidence in the strength of UK life sciences and the UK fund industry. 2017’s surge in overall money raised by London listed funds to £2.5 billion demonstrates London Stock Exchange’s enduring ability to finance a variety of issuers from across the world, from a number of sectors, giving them access to London’s deepest pool of international investor capital – a trend we expect to see continue this year.”
Pablo Legorreta, CEO of Royalty Pharma and Co-Founder of Pharmakon, the Investment Manager of BioPharma Credit:
“Our IPO had a strong response from a diverse range of high quality institutional investors. We chose the London Stock Exchange as it will provide us with an excellent platform for growth, giving us access to multi-currency investor capital whilst becoming part of a unique financial services ecosystem. Building upon our strong track record, we are excited to give a broader audience of investors access to the benefits of our strong network and in-depth knowledge of the sector.”
London Stock Exchange fund credentials:
– Biopharma Credit is the largest global life sciences related IPO so far in 2017
– 2017’s fund IPOs have performed well since listing, all are trading at Premiums to their Net Asset Values
– 31 funds are now listed on the Specialist Fund Market
– The largest London listed fund is Scottish Mortgage Trust with a market cap of just under £5bn. It joined the FTSE 100 in March 2017
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