DW Healthcare tops $190 mln for Fund IV

Firm: DW Healthcare Partners

Fund: DW Healthcare Partners IV LP

Target: $350 mln

Amount raised: At least $194 mln

Placement Agent: Credit Suisse

DW Healthcare Partners held a first close on $194 million for its fourth fund, which is targeting $350 million for lower-middle-market healthcare deals, according to a public filing and a source.

DW Healthcare Partners IV is a jump from the firm’s vintage 2011 pool, which drew in $265 million. The firm is based in Toronto and Park City, Utah.

Arkansas Teacher Retirement System (ATRS) committed $30 million to Fund IV, Buyouts reported on December 9. DW Healthcare Partners Fund III generated a 13.4 percent IRR as of December 31, 2014, ATRS reported.

On the deal front, DW Healthcare Partners said it sold Health & Safety Institute Inc to Riverside Co for an undisclosed sum, in a deal announced in May. The deal marked the first realization from Fund III, according to a statement from the firm.

In February 2015, it sold Career Step Holdings LLC to Revelstoke Capital Partners for an undisclosed sum. The firm hasn’t formally announced any acquisitions since it invested in Med-Pharmex Inc in 2013.

DW Healthcare Partners traces its roots to 2002, when it was founded by Andrew Carragher and Jay Benear, both managing directors. It manages more than $500 million.

The firm employs three other managing directors: Rod Boone, Doug Schillinger and Lance Ruud, who is also chief compliance officer, according to is website.

DW Healthcare invests in healthcare companies with $4 million or more in EBITDA, with a focus on strategic growth planning and business value maximization. Equity investments range from $15 million to $40 million.

The firm did not respond to an email inquiring about fundraising.

Action item: Reach Managing Partner and co-founder Andrew Carragher at acarragher@dwhp.com

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