Frazier Healthcare Partners said Tuesday that its growth buyout fund closed at its $525 million hard cap. Frazier Healthcare Growth Buyout Fund VIII LP is the firm’s first vehicle focused exclusively on profitable healthcare companies in the lower middle market. The fund will invest in buyouts, recapitalizations or corporate carve-outs of companies with between $5 million and $40 million of EBITDA. Frazier Healthcare also said it closed an early stage therapeutics focused fund with $262 million in capital commitments.
SEATTLE–(BUSINESS WIRE)–Frazier Healthcare Partners, a leading healthcare-focused investment firm founded in 1991, today announced the closing of Frazier Healthcare Growth Buyout Fund VIII, L.P. at its hard cap of $525 million. This oversubscribed fund, which is run out of the firm’s Seattle office, represents Frazier Healthcare Partners’ first dedicated growth buyout vehicle focused exclusively on profitable healthcare companies in the lower middle market. The offering garnered strong support from existing and select new limited partners, which represent some of the most prestigious endowments, public/private pension funds and financial institutions globally.
“We are appreciative of the continued support from our existing limited partners and pleased to selectively add a few new blue chip investors,” said Nader Naini, managing general partner at Frazier Healthcare Partners. “The team is particularly gratified that this world-class investor group recognized our rich, 25-year history of developing category-leading healthcare companies in the lower middle market.”
The growth buyout team will continue to leverage its well-developed, broad network to identify and partner with seasoned healthcare executives to acquire and rapidly grow companies. This proven operating partner-centric investment strategy will be executed by an experienced leadership team, who have an average tenure of more than 15 years with the firm, and a group of executive partners, associates and senior advisors all with deep healthcare domain expertise. Investments typically take the form of thesis-driven buyouts, recapitalizations or corporate carve-outs of companies with between $5 million and $40 million of EBITDA in selectively targeted healthcare sectors. Notably, the firm has collaborated with its operating partners to develop category-leading companies with EBITDA in excess of $100 million in the subsectors of managed care (Bravo Health), dialysis clinics (DSI Renal, Inc.) and pharma services (PCI Pharma Services).
In addition to its growth buyout fund, the firm’s life sciences team, based in Menlo Park, Calif., recently closed on an early stage therapeutics focused fund with $262 million in capital commitments.
About Frazier Healthcare Growth Buyout
Frazier Healthcare’s Growth Buyout team has a 25-year track record of partnering with leading healthcare executives to acquire profitable platforms in the lower middle market and transform them into rapidly growing, category-leading companies. Employing a thesis-driven, operating partner-centric investment strategy, the team targets specific industry subsectors and platforms in which they can differentially impact the growth trajectory of these enterprises. These investments typically take the form of leveraged buyouts, recapitalizations or corporate carve-outs.
About Frazier Healthcare Partners
Founded in 1991, Frazier Healthcare Partners has been a leading U.S.-based healthcare-focused investment firm providing private growth capital to healthcare companies. The firm has more than $2.9 billion in committed capital under management and has made investments in more than 170 companies ranging from early-stage venture investments to growth buyouts of profitable lower middle market companies. Frazier’s experienced team takes an active approach to helping build portfolio companies, leveraging their deep domain expertise and expansive network of healthcare executives, advisors and industry thought leaders. Frazier Life Sciences Fund and Frazier Healthcare Growth Buyout Fund are the two vehicles utilized to make investments in early stage life sciences companies and lower middle market profitable growth buyout companies, respectively. While these strategies target companies in distinctively different market segments and stages of development, both investment teams leverage the firm’s rich 25-year history to identify and partner with exceptional management teams to develop category-leading companies. Frazier has offices in Seattle, Wash., and Menlo Park, Calif., and invests broadly across the United States, Canada and Europe.
For more information about Frazier Healthcare Partners, visit the company’s website at www.FrazierHealthcare.com.