Cressey & Co LP said June 18 that its latest flagship closed on $995 million while a related co-investment vehicle raised $105 million. The Cressey funds will invest in healthcare services and information technology businesses in the North American healthcare industry. The target for Cressey & Company Fund VI LP was $750 million. Kirkland & Ellis LLP served as legal counsel in the formation of Fund VI.
CHICAGO and NASHVILLE – June 18, 2018 – Cressey & Company LP (“Cressey & Company”), a healthcare-focused private investment firm, today announced the closing of Cressey & Company Fund VI, LP (“Fund VI”) on $995 million and a related co-investment vehicle on $105 million, bringing total new capital commitments to $1.1 billion. The new funds will continue Cressey & Company’s focus on investing in and building leading healthcare services and information technology businesses in the North American healthcare industry.
“We thank our investors for the trust they have placed in us and we are excited to capitalize on the attractive investment and value-creation opportunities we see in the services and information technology sectors of the healthcare market,” said Peter Ehrich, Partner at Cressey & Company. “My partners and I are proud of the leadership position we have established for our firm and for the value we have delivered to our investors over the years.”
Fund VI launched in March 2018 with a target of $750 million and was almost immediately oversubscribed. Fund VI had a single close on June 8, 2018, at its hard cap, raising a total of $995 million. The firm also offered and closed a co-investment vehicle totaling $105 million. Cressey & Company’s previous fund, Cressey & Company Fund V, closed in December 2014 on $615 million in capital commitments. Including Cressey & Company’s Funds IV and V, the firm currently manages more than $2.0 billion in committed capital.
Similar to prior funds, Fund VI will implement Cressey & Company’s “Target, Partner and Build” strategy that focuses on providing capital and support to exceptional executives in high-potential sectors of the healthcare industry. As part of this strategy, which Cressey & Company and its predecessor firms have executed for over 35 years, Fund VI will focus on investing in leading platform businesses and accelerating growth both organically and through acquisitions. It generally seeks investments in companies with enterprise values at the time of investment of between $50 million and $500 million.
Kirkland & Ellis LLP served as legal counsel in the formation of Fund VI. No placement agent was used.
About Cressey & Company
Based in Chicago, IL and Nashville, TN, Cressey & Company (“Cressey & Company”) is a private investment firm focused on building leading healthcare services and information technology businesses. With a history spanning more than 35 years, the Cressey & Company team has demonstrated a track record of experience and success in the healthcare private equity field. More information about Cressey & Company is available at http://www.cresseyco.com.