What You Should Know
– Catalio Capital Management has closed its second credit fund with over $325M in commitments, marking a significant expansion of structured financing options for commercial-stage healthcare companies.
– As traditional equity funding becomes increasingly scarce, this fund addresses growing demand for debt and structured capital that allows innovative healthcare companies to preserve equity ownership while scaling operations, with 21 investments already deployed across medical devices, digital health, and AI-powered therapeutics.
The Resilience Gap: Why Structured Capital is Trending
As of early 2026, the life sciences sector is navigating a period of capital scarcity. While 80% of healthcare CIOs are maintaining or increasing their professional services spend to drive efficiency, many innovation-stage firms are struggling to secure traditional equity without significant dilution.
Catalio’s Structured Opportunities strategy addresses this “Resilience Gap” by focusing on:
- Commercial-Stage Targets: Companies with proven scientific logic and meaningful revenue drivers.
- Flexible Financing: Tailored solutions that bridge the gap between early-stage VC and large-scale public markets.
- Expert-Led Multi-Strategy: Utilizing a platform of world-renowned scientist-entrepreneurs to de-risk investments in complex biology.
Catalio’s Differentiated Approach to Healthcare Credit
Unlike traditional venture debt providers that typically follow equity rounds with supplemental capital, Catalio’s Structured Opportunities strategy operates across the full capital structure—from senior secured debt to structured equity instruments.
Investment Criteria and Focus:
The fund targets commercial-stage healthcare companies demonstrating:
- Scientific and clinical validation of their innovations
- Meaningful revenue growth or clear cash flow trajectories
- Products addressing significant unmet medical needs
- Regulatory pathways to commercialization (FDA clearance, CE marking, etc.)
This focus on commercial-stage companies distinguishes Catalio’s credit approach from traditional healthcare venture debt, which often provides bridge capital between equity rounds for earlier-stage companies. Instead, Catalio structures financing around revenue performance, commercial milestones, and asset values—enabling companies to secure growth capital without immediate equity dilution.
