The pool, which will have a $200 million target, is the first for BelHealth, persons say. The PE firm held a $60 million first close in June, but those funds came internally from BelHealth executives.
In September, BelHealth plans to begin fundraising to outside investors, including institutions, a second person says. A second close is expected at the end of that month, the person says.
Fundraising is anticipated to end later this year but will likely extend into March. BelHealth has hired a placement agent in Europe but is currently on the hunt for one in the U.S., sources say.
Port Washington, N.Y.-based BelHealth was founded earlier this year by managing partners Harold Blue and Bert Brodksy. The firm invests in lower middle market healthcare companies in healthcare technology, services or distribution. BelHealth typically investing $10 to $20 million equity per deal ($15 million is the sweet spot).
BelHealth has already made its first investment. The PE firm bought Skila, a Morris Plains, N.J.-based healthcare technology services company, in June.
BelHealth is the successor firm to HealthEdge Investment Partners, which raised a $60 million fund in 2006. HealthEdge Investment Partners LP made six acquisitions and the entire fund has been invested, a source says.
Several of the BelHealth execs, including Blue and Brodsky, were also with Healthedge.
Officials for BelHealth declined comment.