Signal Royalty Partners

Signal Healthcare
Royalties Fund

Contractual Cash Flows. Disciplined Underwriting. Operator Edge.

Vehicle
Fund I
Inaugural healthcare royalties vehicle
Target Raise
$250-400M
Hard cap at $500M
Launch
April 2026
First close targeted Q3 2026
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The Opportunity

A Structural Gap
in Healthcare Royalties

Accelerating deal flow, proven asset class resilience, and a competitive vacuum at the mid-market level.

$0B
Healthcare royalty transactions (2025)
+40% vs. five-year average
$0B
Synthetic royalties (2025)
First year exceeding $4B
0%
Healthcare PE write-off rate
vs. 4.6% all-industry average
$25-150M
Structural gap from KKR/HCR consolidation
Mid-market opportunity
Investment Philosophy

The Thesis

01
Contractual Cash Flow First
We target approved drugs, devices, diagnostics, and late-stage assets where revenue streams are contractual, not speculative. Regulatory risk is substantially de-risked at entry.
02
Mid-Market Where Edge Lives
$25-150M ticket sizes sit below the floor of mega-cap buyers and above the ceiling of smaller funds. Less competition. Better pricing. More structural protections.
03
Operator-Led Underwriting
Consumer-IP royalty experience translates directly to healthcare. Pattern recognition on cash flow durability, counterparty strength, and structural protections is domain-transferable.
“Contractual cash flows backed by approved healthcare assets are the closest thing to durable yield with embedded growth.”
Investment Philosophy
Market Validation

Proven, Scaled, Accelerating

$0B+
Cumulative transaction volume
0
Total transactions
$0M
Average transaction size
Three Structural Shifts
KKR / HCR Consolidation
KKR's majority investment in HealthCare Royalty pushed the platform upmarket, vacating the $25-150M band for disciplined mid-market entrants.
Manager Internalizations
Royalty Pharma (RPRX) and DRI Healthcare have internalized, reducing the number of active allocators and thinning competition for mid-market flow.
Synthetic Royalty Inflection
2025 was the first year synthetic royalties exceeded $4B, unlocking a new class of structured healthcare cash flows for dedicated capital.
Competitive Landscape

The Comp Set

Three established platforms define the healthcare royalties landscape. Each has moved upmarket or internalized, widening the mid-market gap.

RPRX
Royalty Pharma
Market Cap ~$22B
Royalty Receipts $3.3B
Market Share ~40%
DHT.UN
DRI Healthcare Trust
Book Value $799M
Active Streams 28
Products 21
HCR
HealthCare Royalty
AUM ~$3.0B
Deployed Since 2006 $7B+
Ownership KKR Majority
Structural Advantages

Why Royalties Outperform

Reduced reimbursement dependence. Royalties are contractual obligations tied to product revenue, not payer mix or reimbursement rate volatility.
Capital-light scale. No operational infrastructure required. Cash flows scale with underlying product adoption without incremental cost.
Seniority and downside protection. Royalty holders sit above equity in the capital structure with contractual priority.
Multiple monetization paths. Secondary sales, securitization, portfolio refinancing, and terminal value optionality.
Royalty Pharma Reference
$2.77B
Net cash from operations, demonstrating the cash-generative nature of scaled royalty portfolios.
Operating Margin 44.2%
Asset Class Healthcare Royalties
Target Profile

Three Investment Sleeves

0%
Approved-Asset Royalties
60-70% allocation. Contractual royalty streams on FDA-approved drugs, biologics, and therapeutics with established commercial trajectories.
0%
Synthetic Royalties
25-35% allocation. Structured cash flow interests created through debt-like instruments tied to product-level revenue. The fastest-growing segment.
0%
Devices & Diagnostics
10-20% allocation. Royalty streams from medical devices, diagnostic platforms, and healthcare technology with recurring revenue characteristics.
$25-150M
Ticket Size
16-18
Portfolio Positions
≥ 8 yrs
Weighted Avg. Life
Underwriting Framework

Five-Lens Diligence

Every investment is stress-tested across five dimensions before commitment.

01
Clinical / Regulatory
Approval status, label breadth, pipeline optionality, regulatory tail risk. Preference for approved assets with post-marketing data.
02
Revenue Durability
Patent cliff analysis, competitive landscape, generic/biosimilar timing, formulary positioning, and volume trajectory modeling.
03
Counterparty Strength
Licensee creditworthiness, operational capability, and commercial commitment. Counterparty default is the primary non-market risk.
04
Structure & Seniority
Payment priority, minimum guarantees, anti-dilution provisions, change-of-control protections, and step-up rights.
05
Sensitivity Cases
Downside, base, and upside scenarios modeled on volume, pricing, competition, and duration. Every deal must clear the 7% downside floor.
Target Returns
Downside Case
≥7%IRR
Base Case
≥13%IRR
Upside Case
18%+IRR
Deal Origination

Where Deals Come From

Five origination channels feeding a diversified, repeatable pipeline.

Pharma / Biotech
BD Direct
$40-60M
typical ticket
University
Tech Transfer
$15-40M
typical ticket
Licensing
Intermediaries
$25-80M
typical ticket
Distressed /
Non-Core
$10-30M
typical ticket
Pharma Portfolio
Cleanup
$30-100M
typical ticket
Steady-State Pipeline
Annual Leads 210-345
Close Rate ~3.5%
Annual Deals 6-8
Operator Edge
Sam Bremner
Royalty pattern recognition developed through consumer IP underwriting at Cloudco Entertainment and M&M. The discipline of evaluating contractual cash flows, counterparty risk, and revenue durability translates directly from entertainment IP to healthcare royalties.
Fund Structure

Fund I Terms

Fund Size
Target $300M
Range $250-400M
Hard Cap $500M
Duration
Investment Period 5 Years
Fund Life 10 Years
Extensions 2 x 1-Year
Economics
Management Fee 1.50% committed / 1.25% post-IP
Carried Interest 20% over 7% pref
Waterfall European, 50% catch-up
GP Commitment 2.0%
Target Returns
13-15%
Net IRR
1.6-1.8x
MOIC
5-7%
Cash Yield from Yr 3
Advisory Board

Dr. Leonard Makowka

Dr. Leonard Makowka
M.D., Ph.D., FRCS(C), FACS
University of Toronto, M.D. 1977, M.Sc. 1979, Ph.D. 1982. Medical Research Council of Canada Fellow and Centennial Fellow.
Training
University of Pittsburgh
Trained under Dr. Thomas E. Starzl, the pioneer of liver transplantation. Fellowship in transplant surgery at one of the world's premier programs.
1989
Professor of Surgery, UCLA School of Medicine
Appointed Professor of Surgery at the UCLA David Geffen School of Medicine. Director of Transplantation Services at Cedars-Sinai Medical Center (1989-1995).
1992 - 1993
Vice Chair of Surgery, UCLA
Served as Vice Chair of the Department of Surgery at UCLA, overseeing clinical and academic operations.
1992 - 1995
Chairman, Department of Surgery, Cedars-Sinai Medical Center
Led the Department of Surgery at one of the nation's leading academic medical centers, building programs in transplantation and surgical innovation.
Recognition
Medical Research Council of Canada Fellow
Centennial Fellow of the Medical Research Council of Canada. Distinguished career spanning transplant surgery, academic medicine, and healthcare leadership.
Contact

Get in Touch

For qualified institutional investors and family offices.

Sam Bremner
Signal IP Partners
sam@signalippartners.com