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Linden Fund III raises $750 mln

Linden Capital Partners has closed its third fund at its $750 million hard cap, said Tony Davis, the Chicago-based firm’s president and managing partner.

The firm, which invests in middle-market healthcare and life sciences companies, began marketing for the third pool on Nov. 17, Davis said. It had a $600 million target. Linden completed most of the fundraising, except for a small technical close last week, by Jan. 30, Davis said.

AlpInvest Partners is a new investor of Fund III, Davis said. News of the Linden fundraising was reported by peHUB in October.

“We doubled the fund size in about 75 days and never actually did a formal roadshow,” Davis said.

Park Hill was the placement agent for Fund III. Linden’s second pool collected $375 million in 2010. Performance data for Fund II was unavailable.

Davis said that LPs recognize that sector-focused GPs produce better returns than generalists, pointing to a Cambridge Associates report from November. “Lots of LPs have read these reports on the benefits of specialization and it’s driven significant demand for healthcare specialists,” he said.

Linden focuses on middle-market healthcare and life sciences companies. It typically invests between $30 million to $70 million of equity per deal in companies with EBITDA from $5 million to $30 million. Linden has the ability to invest more, along with its LPs, Davis said.

In February, Linden said it had closed its investment in The Flexan Corp., which makes high-precision silicone and rubber parts for the medical device industry. Last August, the firm closed a deal for Spear Education LLC, which provides post-graduate dental education in the United States.

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