Tekla Capital Management has launched Tekla Healthcare Opportunities Fund (THQ), a closed-end management investment company.
The trust priced an offering of 38.5 million shares at a price of USD20.00 per share, for a total issuance of USD770 million.
The total issuance may reach up to USD885 million should the underwriters exercise their over-allotment option in full, which may or may not occur.
Shares commenced trading on the New York Stock Exchange on 29 July under the ticker symbol THQ.
With this offering, Tekla endeavours to build upon the success of their two existing healthcare-focused closed-end funds – H&Q Healthcare Investors and H&Q Life Sciences Investors.
“We believe THQ resonates with investors with its unique strategy that attempts to capitalise on the growing and dynamic investment opportunity presented by the healthcare industry,” says Daniel R Omstead, president and CEO of Tekla.
“We were very pleased to partner with Tekla, the world class healthcare-focused investment manager, to expand the healthcare investment opportunities currently available to investors with the launch of THQ,” says Dominic C Martellaro, co-chairman and CEO of Destra Capital Investments.
In addition to their efforts to raise assets during the recently completed IPO, Destra has been retained by the trust to provide investor support services in connection with the ongoing operation of the trust.
THQ’s investment objective is to seek current income and long-term capital appreciation. Under normal market conditions, the trust expects to invest at least 80 per centof its managed assets in US and non-US companies engaged in the healthcare industry including equity securities, debt securities, and pooled investment vehicles. THQ’s portfolio will be dynamically allocated among investments in the various subsectors that comprise the healthcare sector.