The Healthcare Platform was seeded by a New York-based family office in January 2022 to address three important objectives of most family offices:
The Healthcare Platform
“The Future of Health that we envision is only about 20 years off, but health in 2040 will be a world apart from what we have now.”
“The Future of Health”
Deloitte, April 2019
Objectives
Returns
Most family offices are concerned about the prospects of lower investment returns across all asset classes and many seek new opportunities with the potential to generate higher returns.
The healthcare sector is entering a Golden Age, and this will provide exceptional investment opportunities for family offices over the next two decades.
The Healthcare Platform will provide family offices the opportunity to invest with a selection of top tier, under-the-radar, global L/S healthcare managers. Each family office will have the option to invest with one or more managers on The Healthcare Platform as the family office will invest with each manager through separately managed accounts.
Taxes
Most family offices are concerned about the possibility of increased taxes, including higher income taxes, capital gains taxes, and estate taxes.
These family offices are increasingly demanding wealth management solutions that incorporate sophisticated tax-advantageous structures.
The Healthcare Platform will provide family offices the opportunity to invest with the L/S healthcare managers through a Private Placement Variable Annuity, which allow a family office to defer all city, state, and federal income taxes or through Private Placement Life Insurance, which will allow a family office to eliminate all city, state, federal income taxes as well as all estate taxes.
Impact Investing
Many family offices would like to increase their allocations to Impact Investments, but the low return profile of most Impact Investments is often a significant impediment. The managers on The Healthcare Platform have the potential to generate excellent returns.
The Healthcare Platform will provide family offices the potential to have a triple impact:
The Healthcare Sector:
Investing in the healthcare sector will contribute to preventing, treating, and curing diseases, and will enable people to live longer and healthier lives.Philanthropy:
If a family office decides to donate their investment with a manager to a charitable institution, all gains on the investment will be tax-exempt, which could result in a significant charitable contribution.Cancer Research:
Tower Capital is donating 5% of its total fees to Memorial Sloan Kettering Cancer CenterTower Capital
Value Add
A Compelling Investment Opportunity
The Healthcare Platform will provide family offices exposure to the significant growth opportunities in the healthcare sector in highly tax-advantageous structures.
Independent Advisor
To qualify for the tax-advantageous structures, Tower Capital serves as the independent investment advisor to The Healthcare Platform.
Managed Account Platform
Tower Capital has established a managed account structure for The Healthcare Platform which will provide family offices daily liquidity with 30 days’ notice.
Experience
Tower Capital’s predecessor firm, Tower Capital, Inc., was founded in 1992 and invested over $3 billion in over 200 L/S equity managers, including L/S healthcare managers.
Since 2017, Tower Capital has analyzed or met with over 130 healthcare managers.
Portfolio/Risk Management
Because The Healthcare Platform is run as a managed account platform, Tower Capital can use the manager’s daily position level transparency to significantly improve risk management.
Manager Capacity
Tower Capital will secure valuable capacity with the managers because the family offices investing with the managers on The Healthcare Platform will be longer-term investors.
The
Healthcare
Sector
Growth Opportunity
01
Aging Population
The aging global population will provide an enormous growth engine for the healthcare sector. In 2020, 8% of the world’s population was over 65; this will double to 16% by 2050.
02
U.S. SPENDING
Per capita healthcare spending for those 65-84 will increase by 60% per year for the next 10 years. U.S. healthcare spending is projected to increase from $3.7 trillion in 2019 to $6.2 trillion in 2028.
03
GLOBAL SPENDING
Global healthcare spending is projected to increase 7x from $3.6 trillion in 2018 to $25 trillion in 2040. In China alone, healthcare spending is projected to triple over the next 15 years.
04
FDA
The FDA has a mandate to fast-track high value-added drugs and medical devices. There has been a 300% increase in FDA approved clinical trials since 2010.
05
Technology
The integration of AI, Big Data and Quantum Computing is revolutionizing the healthcare sector. Global AI in the healthcare sector is expected to grow at 42% per year for the next 10 years.
06
Biopharma
By 2040, groundbreaking hyper-tailored biopharma therapies will be developed to cure or prevent diseases rather than treat symptoms. Looking back in 2040, our current approach to disease and treatments will be considered crude.
07
Genomics
The cost of sequencing a human genome has fallen from $100 million in 2001 to $500 in 2022. Genome sequencing represents a paradigm shift that will revolutionize personalized medicine.
08
R&D
In 2020, the healthcare sector spent more on R&D than any other S&P sector, for the first time ever. This will result in huge investment opportunities in the healthcare sector.
The
Healthcare
Platform
Background
2021
THE
HEALTHCARE
PLATFORM
Launch
In 2022, The Healthcare Platform was seeded by a New York-based family office.
2021
TOWER CAPITAL
Re-establishment
In 2021, Lawrence Doyle re-established Tower Capital (originally founded in 1992) to provide family offices the opportunity to:
2017 - 2020
HEALTHCARE SECTOR
Due Diligence
Since 2017, Tower Capital has analyzed over 130 L/S healthcare managers in an attempt to identify top-tier under-the-radar L/S healthcare managers, globally.
Tower Capital
History
2005
HYPOVEREINSBANK
Transaction
In 2005, Mr. Doyle sold the track records and the $2.3 billion in AUM of Tower Capital, Inc.’s 13 L/S equity FoFs to HypoVereinsbank, at the time, the 2nd largest German bank.
2000
$ 2.3 BILLION
Under Management
Between 1992-2005, Tower Capital, Inc. specialized in structuring L/S equity FoFs for institutional investors. Over this time period, the firm invested over $3 billion in over 200 L/S equity managers. In 2000, Tower Capital, Inc. had $2.3 billion under management and, at the time, was one of the five largest FoFs in the hedge fund industry.
1992
TOWER CAPITAL, INC.
Establishment
Tower Capital, Inc. was founded with a $1 million investment in a single U.S. L/S equity manager. The seed capital for this investment came from Banca del Gottardo, Lugano.