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CEF Specialist

CEF Update: News You Can Use

A new CEF launches.

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New Fund Launch
Tekla Capital Management announced the launch of a new closed-end fund, the Tekla Healthcare Opportunities Fund (THQ). The fund raised $770 million through an offering of 38.5 million shares at $20 per share through an initial public offering last week. The fund could raise an additional $115 million should its underwriters exercise their overallotment option in full.

The fund’s objective is to see income and long-term capital appreciation by investing at least 80% of assets in health-care-related firms globally. The fund has the ability to invest across a firm’s capital structure, including equity and debt securities, as well as pooled investment vehicles. Tekla’s experience managing health-care-oriented CEFs comes from its other CEFs under management, including H&Q Healthcare Investors (HQH) and H&Q Life Sciences Investors (HQL), which together make up $1.3 billion in net assets.

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Sumit Desai, CFA does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.