Treated like royalty

The $1 billion close for Cowen Healthcare Royalty Partners' second fund makes it crystal clear that LPs want an investment that is not correlated to the stock market, pays out regularly and offers returns of 2x or more.

The firm said the new fund exceeded its initial target by more than 75% and is the largest ever private equity fund dedicated to healthcare royalty investments. The fund is almost twice the size of Cowen Royalty's first fund, which closed at $506 million in 2008 and is fully committed...