Firms & Funds

New healthcare shop is first to get seed money from Moelis-Veritable

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Primus Capital, healthcare, Medhost, private equity, merger, M&A
Woman doctor shaking hand with businessman in the office. Young medical specialist in uniform meeting partner for discussion. Shallow depth of field. Photo courtesy of seoterra/iStock/Getty Images
  • Petrichor Healthcare Capital Management LP receives $100 mln anchor investment
  • Petrichor launched for former MD for OrbiMed Advisors
  • Archean Capital Partners is JV between Moelis Asset Management and Veritable LP

Petrichor Healthcare Capital Management LP, launched this January by an ex-managing director at OrbiMed Advisors, is the first private equity shop to secure seed funding from Archean Capital Partners, a joint-venture between Moelis Asset Management LP and asset manager Veritable LP.

Archean Capital and Petrichor Healthcare planned to reveal today in a joint press release that Archean Capital had made a $100 million anchor commitment to the firm. It is unclear if Petrichor Healthcare plans to raise additional money, or how much it may be targeting. At press time we were unable to reach executives there for comment.

On a Form D filed this summer with the U.S. Securities and Exchange Commission, Petrichor Healthcare noted that Moelis & Co received a sales commission of $1.75 million for the $100 million commitment to Petrichor Opportunities Fund I LP. Moelis has a fund placement team that specializes in raising money for spinout groups and other emerging managers.

Tadd Wessel, founder and CEO of Petrichor Healthcare, has spent more than 19 years in healthcare finance. Before working from 2009 to 2016 at healthcare private equity shop OrbiMed Advisors, Wessel worked for nearly three years as an investment professional at Fortress Investment Group, according to his LinkedIn profile. His new firm plans to invest in structured credit, royalty and equity investments.

Moelis Asset Management and Veritable announced their 50-50 joint venture in January, saying they planned to raise money from family-office clients of Veritable to seed new firms investing in buyouts, turnarounds, restructurings, growth equity, credit, infrastructure and real estate. At the time Archean Capital said it had committed $100 million to an undisclosed first-time fund (presumably Petrichor Healthcare).

Along with money, Archean Capital offers a variety of back-office services to get new firms on their feet. These include accounting, legal, compliance and communications services. Archean Capital is not expected to take stakes in the fund managers it seeds; however, it does plan to share revenue with them.

Action Item: See the Form D for Petrichor Healthcare fund here: https://goo.gl/RkocXh

Image Credit: Photo courtesy of seoterra/iStock/Getty Images