Asia’s healthcare-dedicated asset management firm CBC Group has announced the final close of its latest healthcare-focused private credit fund with $500 million in total capital commitments.
R-Bridge Healthcare Fund II (RBF II), which the Singapore-based firm described as Asia’s largest healthcare-focused private credit vehicle, attracted commitments from sovereign wealth funds, corporate pensions, financial institutions, and family offices.
The fund will provide royalty- and revenue-backed, non-dilutive financing to healthcare companies with approved or commercial-stage therapeutics and medical technologies across Asia, Europe, and other markets, CBC said.
The strategy aims to deliver “attractive risk-adjusted returns” with downside protection while supporting portfolio companies’ commercial growth, per the announcement.
CBC launched its private credit and drug-royalty strategy in 2020 and said RBF I and II have backed “high-quality, commercial-stage opportunities”, without disclosing performance details.
“With RBF II, we are doubling down on our conviction that non-dilutive private credit solutions are a vital part of healthcare capital markets globally from Europe, Asia, and the US,” said Michael Keyoung, senior managing director and head of private credit and royalty at CBC.
CBC Group oversees about $11 billion in assets under management. Headquartered in Singapore with offices across the US, Asia, and Europe, it invests across platform building, buyouts, private credit and royalties, and real estate in pharmaceuticals, biotechnology, medical technology, and healthcare services.
R-Bridge, founded in 2020, provides non-dilutive financing to healthcare companies, using royalties, revenue interests, and other product cash flows, CBC said. It raised its inaugural fund in 2020.
The final close of RBF II comes less than a year after CBC held the first close of its maiden RMB-denominated M&A fund at over 7 billion yuan (about $966 million), targeting 10 billion yuan in the final close.
The fund aims to “promote high-quality upgrade and development of Beijing’s healthcare industry” by leveraging favourable government policy, industry infrastructure, and top scientific research and clinical resources in the capital city, CBC Group said in a statement.
RBF II’s final close comes as private credit is likely to become one of the first semi-liquid fund strategies offered to everyday investors in Asia’s financial hubs as money managers and regulators seek ways to bridge private markets with public access in the region.
Private credit funds have outclassed private equity with returns of 2% for the second quarter, boosting their appeal for everyday investors in Asia, who may have greater liquidity concerns when it comes to allocating to assets with a lock-up period, unlike the public market.
