Predicting royalty futures

For the first time, DRI Capital plans to seek potential royalties from Phase III compounds rather than from marketed drugs. To do so the firm will use up to 25% of proceeds from its newly closed $1.5 billion Drug Royalty III, which DRI said is the largest ever private equity fund focused on healthcare royalties.

The fundraising took about 12 months and was oversubscribed, with an original target of $1 billion...