Houston-based CAZ Investments recently sealed a private equity health care fund worth nearly US$30 million.
According to Christopher Zook, chairman and chief investment officer of the company, CAZ Medical Royalty Fund LP will be allocated into investment firms in Toronto and Houston.
The funding comes with less risk compared to a typical investment in health care. He stated, "For this fund, we don't have as long a lag time. Typically, when you make a venture capital investment it's a concept and you have to wait for it to go through the entire process. We're investing only in products in the marketplace already generating revenue."
The decline in life sciences capital deals for the first three months of the year was most likely brought about by the increasing risk involved in the pharma sector, based on a report by New York City-based PricewaterhouseCoopers LLP and Arlington, Va.-based National Venture Capital Association.
The shareholders of the fund will be benefiting from cashflow by the fourth quarter of this year. The capital will be invested across three years, Zook said.
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