Paul Capital

Paul Capital operated a three-platform model combining primary private equity fund commitments, secondary-market portfolio acquisitions from institutional sellers, and direct co-investments alongside sponsor GPs. The secondary business became its most prominent line, raising ten dedicated vehicles over the firm's lifespan. The firm also maintained a specialized healthcare royalties unit that acquired revenue interests on pharmaceutical and medical-device products.

Philip Paul founded the firm in 1991 in San Francisco. R. Michael McCarthy served as Chairman and CEO for much of the firm's operating history, overseeing its expansion into the secondary and healthcare royalties businesses. The partnership structure meant senior leadership included a number of investment professionals across the firm's international offices.

No. After the 2008 financial crisis, the firm faced capital-raising challenges linked to broader denominator-effect pressures on institutional limited partners. By 2012, Paul Capital was winding down active investment operations and sold several of its management contracts, effectively ceasing new fund formation and deployment.

The firm sourced secondary opportunities through its established relationships with institutional limited partners — banks, insurance companies, and pension funds — primarily in North America and Europe. Its long track record as both a primary fund-of-funds manager and a secondary buyer gave it visibility into portfolios being rebalanced or liquidated by motivated sellers, often including venture capital-heavy LP interests.

The healthcare royalties team operated separately from the private equity fund-of-funds and secondary groups. It acquired royalty interests tied to approved pharmaceutical and medical-device products, generating returns linked to drug and device revenue rather than to portfolio-company exits. This provided a cash-flow profile distinct from the traditional private equity drawdown and distribution cycle, and it was a rare structure among secondary-focused firms.