BioPharma Credit (BPCR) Investor Presentation summary

Market opportunity and industry trends

• Life sciences industry has grown to $1.6 trillion, with a 7% CAGR over 20 years and is resilient to economic cycles.

• R&D spending in life sciences reached $249 billion in 2021, up from $81 billion in 2013, a 15% CAGR.

• FDA drug approvals have increased, providing a steady pipeline for new lending opportunities.

• Small and midsize companies account for over half of new drug approvals, creating more debt investment prospects.

• Volatile biotech equity markets have made debt financing more attractive for companies.

Investment strategy and portfolio composition

• Focuses on debt investments in approved, commercial-stage life sciences products, avoiding clinical trial or approval risk.

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

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

• Weighted average discount rate for portfolio investments is 11.6% as of January 2025.

• Gross yield of the portfolio remains strong, benefiting from higher reference rates, with a 12.2% gross yield in Q4 2024.

Performance and track record

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

• Consistent unlevered returns across 41 realized transactions, with most investments achieving net IRRs between 10% and 15%.

• Realized net MOIC for closed private funds ranges from 1.21x to 1.27x.

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

• BPCR has consistently met its $0.07 annualized dividend target for nearly seven years, supporting steady NAV total return.