Biomedical-focused investment firm Catalio Capital Management is launching a new credit strategy that will provide non-dilutive capital to companies, and brought on a pair of former portfolio managers from Baltimore-based Brown Advisory to lead it.
It’s marks the third approach to funding companies from Baltimore-based Catalio. Launched in June after R. Jacob Vogelstein and George Petrocheilos spun the firm out of Inner Harbor-based Camden Partners, Catalio draws on a network of scientists who have entrepreneurial experience.
Catalio plans to offer structured credit facilities for companies that are pre-cashflow, and have support from institutional investors. It’s a position seen in the life sciences space, as companies developing new treatments must conduct intensive research and testing to get regulatory approval before a product can reach the market. At this stage, the companies face a choice to take investment, which often requires giving up equity, or slow down growth. Banks aren’t typically an option for companies at this stage. So Catalio is looking to offer an option that will provide access to growth capital via credit with a repayment built in, and tap Catalio’s network.
To lead this, it brought on John Henry Iucker and Robert Snyder, who will be co-portfolio managers. They both previously played a role in building a credit platform at Brown Advisory, the Fells Point-based asset management firm. They will be joined on the investment committee for this strategy by Joshua Samuelson, cofounder of PointState Capital and a previous portfolio manager at Stanley Druckenmiller-founded Duquesne Capital Management and Soros Fund Management.
In another piece of hiring news, Catalio said it appointed Brandon Matz as head of marketing and investor relations. He previously worked at York Capital Management.
Along with the credit facility, Catalio invests in companies through a $100 million venture fund that closed in October. And last week, it partnered with another firm to take a blank check company called HealthCor Catalio Acquisition Corp. public on the Nasdaq.
“The life sciences industry continues to offer significant opportunities for investment, and these latest additions to our team will further augment our platform and help our transformative biomedical technology companies to bring their innovations to market,” said a statement from the cofounders.