On February 8, 2023, DRI Healthcare Trust completed a private placement, raising US$95 million with investors including EdgePoint Wealth Management Inc., Alberta Investment Management Corporation, and FAX Capital Corp. The funding is intended for royalty transactions in therapeutics, tapping into opportunities presented by biotech market disruptions.

The placement involved US$95 million of Series A Preferred Securities and US$19.76 million of Series B Preferred Securities, totaling significant capital to support DRI's growth. These unsecured, subordinated debt securities feature a 7.04% initial annual interest rate for Series A, maturing in 2073, while Series B matures in 2027. Both series are not redeemable before December 2027 unless there's a change of control.

Additionally, DRI issued 6,369,180 warrants, allowing holders to buy Trust units at US$11.62 until 2028. The terms also detail a potential interest rate increase starting in 2028 for Series A securities.

Following the successful placement, DRI increased its five-year deployment target to between US$850 million and US$900 million by 2025, reflecting a strong initial deployment since its IPO.

Scotia Capital Inc. was the exclusive financial advisor and private placement agent for the deal, with Osler, Hoskin & Harcourt LLP providing legal counsel.