Linden Capital Partners closed its fifth fund on its hard cap on $3 billion. Linden has grown its team to 42 professionals, including a buyout investment team of 20 people. Linden also manages a non-control, structured capital fund, which closed in June.
Linden Capital Partners (“Linden”), a leading healthcare private equity firm, today announced the closing for its fifth buyout fund, Linden Capital Partners V (“Fund V”). Similar to prior Linden buyout raises, this fundraise was oversubscribed above its hard cap of $3.0 billion of limited partner commitments.
“We are grateful for our investors’ support as we seek to create exceptional companies and deliver attractive returns,” said Tony Davis, Linden’s President and Managing Partner. “We’re proud that we’ve generated returns of over 4x gross multiple on invested capital (“MOIC”) as of December 22, 2021, across all realized transactions in our 17-year history.* As one of the largest and longest-standing dedicated healthcare private equity firms, we believe we’re well-positioned to continue to execute our investment strategy over the course of Fund V.”
Since Linden Capital Partners’ founding in 2004, the firm has focused on middle-market healthcare investments across services, products, and distribution. Linden seeks to create long-term sustainable growth by implementing proprietary value creation programs, emphasizing human capital, and leveraging integrated financial and operating experience.
Over the last several years, Linden has strategically built out its team, which has grown to 42 professionals, including a buyout investment team of 20 professionals. In addition to its buyout funds, Linden also manages a non-control, structured capital fund, which closed in June 2021.
“We’re extremely pleased with this outcome, especially in such a crowded fundraising environment,” added Katie Kornel, Linden’s Investor Relations Partner. “With this raise, we continued to diversify our investor base, which now includes investors from over 20 countries. We’re honored to manage capital on behalf of some of the world’s largest and most sophisticated institutions.”
Kirkland & Ellis LLP served as legal advisors, and PJT Park Hill served as placement advisor.
About Linden Capital Partners
Linden Capital Partners is a Chicago-based private equity firm focused exclusively on the healthcare industry. Founded in 2004, Linden is one of the country’s largest dedicated healthcare private equity firms. Linden’s strategy is based upon three elements: (i) healthcare specialization, (ii) integrated private equity and operating expertise, and (iii) its differentiated human capital program. Linden invests in middle market platforms in the medical products, specialty distribution, pharmaceutical, and services segments of healthcare. Since its founding, Linden has invested in over 40 healthcare companies encompassing over 200 total transactions. The firm has raised over $6 billion in limited partner commitments since inception. For more information, please visit www.lindenllc.com.
* Past performance is not necessarily indicative of future results and there can be no assurance that any fund will achieve comparable results or avoid substantial losses. Gross MOIC and net MOIC across all Linden buyout fund investments (realized and unrealized), including recently acquired companies held at cost, is 2.1x and 1.9x, respectively, with an average hold of approximately 2.75 years. MOIC means (i) Linden’s actual cumulative investment inflows or other value received, including the value as of December 22, 2021, of public securities received in a partial realization of an investment and Linden’s estimate of fair value of unrealized and post-closing proceeds of unrealized as of September 30, 2021, the most recent financial reporting date, divided by (ii) the outflows; for unrealized investments, as of September 30, 2021, the Gross MOIC is based on Linden’s estimates and assumes the applicable investment was sold for its stated unrealized value on September 30, 2021. Realized inflows represent gross cash and in-kind proceeds to a Linden fund including dividends, distributions of interest income, Blocker Expenses, taxes paid on behalf of a Linden fund, net of units sold to management and other investors post initial investment, and proceeds from dispositions of securities. Realized investments includes shares of a public company for which full realization was not possible due to the structure of and subsequent lock-up from a reverse merger with a SPAC and it also includes investments which have been sold to a third party or have been otherwise disposed of. Gross MOIC is based on Linden’s GAAP estimate, unaudited and calculated without giving effect to carried interest, management fees, and other expenses of the type that would be borne by a private equity fund and taxes, which is significant and will reduce returns. Net MOIC is calculated after taking into account management fees, carried interest, fund expenses and taxes. Investment returns exclude amounts invested by third-party co-investors. Net realized MOIC is not presented as it is unable to be calculated at the individual investment level and across funds. No investor has received the returns listed here, including gross and net realized and unrealized MOIC because these returns are across multiple funds. Subsequent events relating to COVID-19 will likely impact future performance. Additional information regarding unrealized valuations is available upon request.