BioPharma Credit (BPCR) Investor Presentation summary

Market opportunity and industry dynamics

• Life sciences industry is valued at $1.6 trillion, growing at a 7% CAGR over 20 years, with R&D spending reaching $250 billion in 2021.

• Sales in the sector are uncorrelated with economic cycles, providing stability even during downturns.

• FDA drug approvals remain robust, ensuring a steady pipeline of lending opportunities.

• Biotech equity markets have underperformed, making debt investments more attractive.

• Choppy equity markets and high capital needs create favorable conditions for debt capital providers.

Investment strategy and portfolio composition

• Focus on debt investments backed by approved life sciences products, avoiding clinical trial or approval risk.

• Portfolio consists mainly of senior secured loans to listed companies, with $1.1bn invested across 11 transactions as of April 2025.

• Investments are diversified across therapeutics, devices, and diagnostics, with collateral value assigned only to approved products.

• Gross yield of the portfolio has benefited from higher reference rates, with a weighted average yield of 11.2% as of May 2025.

• Majority of investments are private loans classified as Level 3, valued using discounted cash flows.

Performance and track record

• Four private funds are fully realized, generating a 10.3% unlevered weighted average annualized net IRR.

• BPCR has consistently met its annualized $0.07 dividend target for over seven years, with steady NAV total return and low volatility.

• Realized net IRRs for individual investments have been consistent, with most transactions delivering singles and doubles, emphasizing reduced risk.

• Debt investments have provided downside protection even when equity values dropped significantly.

• All four previous private funds have returned all capital to investors.