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SightLine Partners Closes $107 Million Second Fund

Minneapolis-based SightLine Partners announced the closing of SightLine Healthcare Opportunity Fund II LP with $107 million in commitments. The fund, which finances late-stage medical technology companies, was oversubscribed and exceeded its original target of $100 million. As part of the fund close, Scott Ward has transitioned from a Venture Partner role to a full time Managing Director.

PRESS RELEASE

MINNEAPOLIS–(BUSINESS WIRE)–SightLine Partners, a leading manager of private equity funds that provide creative financing solutions to late-stage medical technology companies, today announced the closing of SightLine Healthcare Opportunity Fund II, L.P., a $107 million Fund dedicated to secondary direct investments in medical technology companies. Fund II was oversubscribed, exceeding its original target of $100 million.

Buzz Benson, Managing Director at SightLine, commented, “We are encouraged by the tremendous interest in the Fund, from an excellent group of investors. Our investment strategy of providing creative financial alternatives to existing investors in late-stage medical technology companies has been well-received in the market, as evidenced by the over-subscription in Fund II. There continues to be a critical financing gap for many high-quality companies in the med-tech sector and SightLine Partners is uniquely qualified to offer solutions to both the companies and investors facing this challenging environment.”

The last five years has seen a substantial reduction in the amount of funding available to late-stage companies, placing additional stress on a company’s current investor syndicate. SightLine’s investment focus since early 2009 has been to provide financial alternatives to existing investors in late-stage companies who may not have sufficient capital to support current portfolio companies and risk having their preferred ownership converted to common, or wish to achieve liquidity on certain portfolio companies, need to reduce or eliminate future funding requirements, or want to rebalance and reallocate fund reserves.

Joe Biller, Managing Director at SightLine, added, “Our investment strategy is well-suited to the current financing environment in the medical technology marketplace, where many late-stage companies are requiring more capital and time to achieve a successful exit. We continue to see opportunities which have a near term clarity of exit and which provide the best potential for risk-adjusted returns.”

In conjunction with the final closing of Fund II, Scott Ward has transitioned from a Venture Partner role to a full time Managing Director. Scott has over 30 years of experience in the medical device industry and held a number of senior leadership positions with Medtronic including Senior Vice President and President of Medtronic Cardiovascular. “SightLine Partners has a unique model which enables us to assist quality companies in the med-tech space while stabilizing investor syndicates and delivering attractive returns for our own investors. Sightline has had great success with this model in Fund I and I look forward to working with the team to drive continued success in Fund II.”

About SightLine Partners

SightLine Partners manages a series of private equity funds that provide creative financing solutions to later stage medical device and diagnostic companies and financial alternatives to the existing investors in these companies. SightLine’s investment focus since early 2009 has been to provide financial alternatives to existing investors in late stage companies who may not have sufficient capital to support portfolio companies and risk having their preferred ownership being converted to common, wish to achieve liquidity on certain portfolio companies, need to reduce or eliminate future funding requirements, or want to rebalance and reallocate fund reserves. The various financial alternatives can be beneficial to all parties, including the investor who is seeking a financial alternative, the portfolio company and management team who are seeking to complete a fully subscribed financing round and the co-investors who want to maintain an intact syndicate and/or add a new investor with deep medical device industry experience and fresh capital.