Shop To Close Debut Health Care Fund Above Target

EDG Partners LLC expects to close its debut fund above its $150 million target in December, Buyouts reported earlier today, citing a source close to the fundraising.

The firm, which has offices in Arlington, Va. and Atlanta, Ga., will close the fund near its $200 million hard cap, the source said.

The tally suggests investors like EDG’s niche strategy of targeting deals in businesses providing health care information technology, distribution, outsourced services, disposables and consumables while avoiding companies that focus on medical devices, biopharmaceuticals and life sciences companies subject to Food & Drug Administration approval risk. Buyouts reported in August that the firm had so far raised $92 million through two closings.

Touchstone Group LLC, a New York-based placement agency, is helping the firm raise the money.

EDG Partners invests $5 million to $25 million at a time. The firm’s portfolio has included Gemino Healthcare Finance, a company that lends term loans and revolving credit lines to health care service providers; Caresite Pharmacy, an operator of nine clinical pharmacies; and Regency Healthcare Group LLC, an operator of three hospice brands.

Three executives with backgrounds in private equity health care investing and as health care pros founded EDG Partners in 2004.

To read more about the firm, find the whole story here (subs only).

Bernard Vaughan is a Senior Editor at Buyouts Magazine. Follow his tweets @BVaughanReuters.