HealthCor Partners manages the operations of private investment funds, making investments in growth equity and later-stage developmental companies within the healthcare and life sciences industry. The firm focuses on businesses at or approaching an inflection point in their growth, seeking returns primarily from portfolio company growth rather than financial leverage. HealthCor Partners does not directly provide investment advisory services for individual investors.
Fee Structure
HealthCor Partners manages private investment funds and receives an asset-based fee. During the investment period, the fee is 2.0% per year of the capital commitments for each fund. After the investment period, the fee is 2.0% per year of capital commitments invested in portfolio companies that have not been realized or written off, and reserved for follow-on investments. For Fund I, the management fee was reduced to 1% per year effective January 1, 2018, and further reduced to zero effective January 1, 2019. For Fund II, the management fee was reduced to 1% per year effective July 1, 2019, and further reduced to zero effective January 1, 2020. An affiliate of HealthCor Partners also receives performance-based compensation equal to 20% of the profits generated from the disposition of portfolio companies.