DW Healthcare Partners’ fifth fund raises $610 mln

DW Healthcare Partners raised its largest fund to date, collecting US$610 million ($800 million) for its fifth healthcare-focused pool of capital.

The Toronto- and Park City, Utah-based firm surpassed its US$500 million target, Founder and Managing Partner Andrew Carragher told Buyouts.

Fund V, which closed on Monday, is more than double the US$295 million raised in the firm’s fourth fund, which closed in March 2017.

The vehicle’s limited partner base encompasses global institutional investors that committed in prior funds, with some nine to 10 new institutional investors having joined Fund V, Carragher said.

DWHP will continue to invest in healthcare opportunities in the U.S. and Canada. The firm targets businesses generating $5 million to $10 million in Ebitda and typically makes equity investments in the $15 million to $60 million range.

DWHP will look to deploy about 50 percent of Fund V towards product-based healthcare companies, with the remainder of its portfolio targeting an equal mix of healthcare services and consumer health companies, Carragher said.

While its strategy will remain consistent, the firm will work to increase its average ownership stake in portfolio companies to 75 percent to 80 percent, from about 60 percent historically, Carragher said.

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