(Bloomberg) -- Sixth Street Partners LLC is anticipating a flurry of deals from health-care firms as the Covid-19 pandemic bolsters the appeal of private capital for larger companies.
The investment firm with $47 billion in assets is seeing opportunities in biotech and pharma, Vijay Mohan, co-founding partner at Sixth Street, said in an interview last week.
“The biggest difference we're seeing from before the pandemic is the appetite from larger companies looking for direct private capital,” he said. “There's still a sense of uncertainty and dealing with one source of capital can help you deal with some of the uncertainty -- just having one stop.”
Sixth Street has one of the largest pools of private capital, with its Tao flagship fund amassing $22.5 billion, according to a Sunday Dow Jones report. In the world of private lending, both the size of borrowers and deals are swelling as the pandemic heightens the need for quick access to funds.
A Sixth Street spokesman declined to comment on fundraising.
Recent Deals
Sixth Street provided Biohaven Pharmaceutical Holding Co. Ltd. with a $500 million term loan this month for development of its migraine medication Nurtec ODT. It was the firm's first deal completed entirely in the post-Covid environment, according to managing director Jeff Pootoolal. It also supplied funding to molecular profiling company Caris Life Sciences this year, after stepping up growth capital for the firm in 2018.
Sixth Street offers debt, structured equity and other capital solutions in industries including business services, retail, telecom and media and energy. It continues to target companies that can weather challenging environments, according to Mohan.
“The macro backdrop is definitely going to be important but we're ultimately looking at companies on a bottom up basis that are going to be resilient no matter the environment,” Mohan said. “Health outcomes are going to be driving economic outcomes, and you have uncertainty upon uncertainty so you have to pick your spots.”
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