Frazier Healthcare Partners raises $2.3bn in six months for 11th growth buyout fund

• Frazier Healthcare Partners has closed Frazier Healthcare Growth Buyout Fund XI at its hard cap of $2.3bn, just six months after launch.

• The healthcare-focused private equity fund aims to acquire controlling interests in middle-market healthcare companies across the US.

• Frazier Healthcare Partners announced last month the acquisition of DirectMed Imaging, a provider of aftermarket parts and component repairs for diagnostic imaging equipment from private equity firm NMS Capital.

• Frazier’s ninth flagship fund, which closed in 2018 at $762mn, currently has a net IRR of 23.0%, putting it in the top quartile of the 2018 vintage North America-focused mid-sized buyout benchmark.

November 21 (Preqin News) – The performance of healthcare-focused private equity funds peaked for 2018 vintages, with a median net IRR of 22.6%.

Frazier Healthcare Growth Buyout Fund IX, is no exception, with the latest Preqin data showing a 23.0% net IRR, outperforming the America-focused mid-sized buyout benchmark. This benchmark, made up of 29 constituent funds, has a median net IRR of 18.8% – compared with a wider 2018 private equity, North America-focused benchmark, where the median net IRR is 18.2%.

Frazier’s fund is joined in the top quartile of 2018 vintage North America-focused mid-sized buyout benchmark by Altaris Health Partners IV, which has a net IRR of 25.9%, and Linden Capital Partners IV (24.2%). In the last 12 years, healthcare-focused funds have achieved a higher median net IRR than generalist funds in six of the last 12 years, as reported in Preqin News.

_{The opinions and facts included within the above do not constitute investment advice. Professional advice should be sought before making any investment or other decisions. Preqin providing the information in this content accepts no liability for any decisions taken in relation to the above.}