Pivoting from Royalty Investing

Based on the most helpful WSO content, making a pivot from healthcare (HC) royalty investing or credit investment to growth equity or private equity is indeed a move some professionals consider. Your background in HC banking for approximately 2.5 years prior to joining the royalty shop has likely provided you with a solid foundation in financial analysis and due diligence, which are valuable skills in private equity.

Here are some steps and considerations that might help in making such a transition:

1. Leverage Your Healthcare Expertise:

   • Your specialized knowledge in healthcare can be a significant asset, especially for PE firms with a focus on healthcare investments.
   • Highlight your experience in due diligence and understanding of the healthcare market in your resume and interviews.

2. Networking:

   • Utilize your existing connections in the industry and reach out to new contacts within the PE space.
   • Attend industry events and consider joining professional groups related to private equity and healthcare investing.

3. Skill Enhancement:

   • Continue to build on your financial modeling and valuation skills, as these are crucial in PE.
   • Consider taking advanced courses or certifications if necessary to fill any skill gaps, especially those related to leveraged buyouts and growth equity investing.

4. Positioning Your Experience:

   • Frame your royalty and asset-based credit investment experience as a unique perspective you bring to the table, focusing on how the skills are transferable to PE investing.
   • Emphasize any experience you have with deal structuring, negotiations, and post-investment portfolio management.

5. Recruitment Strategy:

   • Target middle-market funds that might value your niche expertise more than larger, generalist funds.
   • Use recruiters who specialize in placing candidates in private equity roles, particularly those with a healthcare focus.

6. Consider an MBA:

   • While not always necessary, an MBA can sometimes facilitate a transition into PE, especially from a more specialized field like royalty investing.

Remember, while the transition may not be straightforward, your unique background could be highly valued by the right firm, especially those looking for deep healthcare sector knowledge.

Sources: Advice: Transitioning from Csuite healthcare -> PE, Private Debt/Direct Lending Exit Opps?, Exiting a Family Office - help/advice?, Healthcare PE - top shops, Healthcare Book Recommendations ?