US-focused healthcare

by Kouji Sonobe

  • 02 Aug 2010
  • PE

Preqin data shows that from 2008 to present 170 private equity funds with a focus on investment in U.S. healthcare closed on an aggregate USD 78.7 billion in capital. Private equity funds with a healthcare focus did not avoid the financial crisis with investor commitments decreasing from USD 49.4 billion in 2008 to USD 21.2 billion in 2009. In the year to date, 23 private equity funds have closed with USD 8.1 billion in capital commitments with a specific focus on the healthcare industry in the U.S..

Of all private equity funds to close, buyout funds contributed the most in terms of aggregate capital with 42 funds closed raising a total USD 36 billion. Venture private equity funds accounted for USD 20.4 billion in total fund closes over the past two years with 98 funds closed in that period.

Looking at vehicles currently raising with a particular emphasis on the U.S. healthcare sector, there are 109 funds on the road seeking USD 31.1 billion in capital. In a similar trend to funds closed, buyout funds are seeking the greatest portion of targeted commitments, with 18 funds on the road looking to attain USD 13.3 billion in capital. There are currently 67 private equity venture funds on the road looking with an aggregate target of USD 10.7 billion.

The largest funds currently seeking capital with a U.S. healthcare focus are the GTCR X and the Metalmark Capital Partners Fund II buyout vehicles, which are both currently seeking USD 3 billion in investor capital. The fund from GTCR Golder Rauner invests in business-service, consumer and technology companies, as well as focussing a large amount of capital on investment in the healthcare industry from start-ups to more mature companies. The second fund from Metalmark Capital focuses on making control investments in middle-market companies growing them through acquisitions, internal investments and operational improvements. The fund has a significant focus on the healthcare industry but also makes investments in the industrial and energy sectors.

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