Credit

Sector Spotlights: Healthcare & Life Sciences

June 26, 2024
Less than 1 min read

Sector Spotlights is a series that features sector experts from our investments teams, who introduce their respective sectors and how they approach their areas of investment. The goal of this series is to provide insight into how Blue Owl views, approaches, and invests in certain sectors. In this installment, we spotlight Healthcare & Life Sciences within Blue Owl Credit. 

 

Meet Blue Owl Credit’s Healthcare & Life Sciences sector experts

Luna McKeon is a Managing Director at Blue Owl and member of the Direct Lending Investment Team. In her role, she focuses on supporting the firm's healthcare direct lending efforts. Sandip Agarwala is a Managing Director at Blue Owl and member of the Direct Lending Investment Team. In his role, he focuses on life sciences credit and royalty investments.

Defining the Healthcare sector at Blue Owl Credit

The Healthcare sector is extremely large and diversified with distinctive, uncorrelated subsectors. Our investment team segments the Healthcare sector into “Products” and “Services”. Healthcare is the second-largest sector within Blue Owl Credit.

Blue Owl Credit’s conviction in Healthcare and Life Sciences Investing

Healthcare has been core sector focus since Blue Owl Credit’s inception in 2016, as it reflects the core investment attributes of our credit thesis: non-cyclical, diversified end markets, and positive macroeconomic tailwinds. Life Sciences is a high conviction sector as it is supported by macroeconomic tailwinds, including: scientific innovations, regulatory environment, and capital markets environment.

How Blue Owl Credit invests in Healthcare and Life Sciences

Our Healthcare direct lending investment team looks for companies that increase access to unmet medical needs, improve patient outcomes, and reduce overall costs. Our Life Sciences Credit & Royalty investment team assesses companies as separate R&D and commercial-stage businesses.

Understanding Royalty Financing in Life Sciences with Blue Owl Credit

Royalties are cash flow streams that are directly tied to the sales of a product. There are two types of royalties: passive royalty and synthetic royalty.

Innovations and investment opportunities in Healthcare and Life Sciences with Blue Owl Credit

Our Healthcare direct lending investment team is excited about opportunities in healthcare technology and alternative reimbursement models. Our Life Sciences Credit & Royalty investment team sees potential for innovations in antibody drug conjugates and radio pharmaceuticals.

 

Past performance is not a guarantee of future results. The views and opinions expressed herein are those of Blue Owl and are subject to change as markets and other conditions fluctuate. Blue Owl is under no obligation to update or keep current the information presented.

Please see endnotes and important information at the end of this page.

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Important information

Unless otherwise indicated, the information referenced herein is as of February 29, 2024.

Past performance is not a guide to future results.

Assets Under Management (“AUM”) refers to the assets that we manage and are generally equal to the sum of (i) net asset value (“NAV”); (ii) drawn and undrawn debt; and (iii) uncalled capital commitments.

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