Frazier Healthcare Partners, a healthcare-focused investment firm, has closed its 10th dedicated healthcare private equity fund focused on the middle market. Frazier Healthcare Growth Buyout Fund X LP was oversubscribed and hit its hard cap of $1.4 billion in total capital commitments.
The offering garnered support from new and existing limited partners, which included public pension funds, financial institutions, foundations and endowments, family offices, corporate pensions and sovereign wealth funds, with commitments coming globally from investors in the United States, Europe, the Middle East and Asia. The majority of investors from its previous fund, FHGB IX, increased their commitment for FHGB X.
“We are humbled and grateful for the continued support and partnership of our long-time investors and are pleased to welcome a blue-chip group of new investors into the Frazier family,” said Nader Naini, co-managing partner at Frazier. “The global interest in our fund is a testament to our unique strategy and proven track record of developing market-leading healthcare companies. We view this responsibility as a privilege and honor.”
Frazier focuses on acquiring controlling interests in healthcare companies with Editda between $10 million and $75 million where it can invest between $50 million and $300 million of equity. Investments can take the form of corporate carveouts of private and publicly traded companies, recapitalizations and buy-and-build strategies.
Recent investments include the corporate carveout of MedData from Mednax in October 2019. MedData is a provider of technology-enabled revenue cycle management services for hospitals, health systems and healthcare providers. More recently, in December 2020, Frazier acquired a 50% stake in CSafe Global, a Dayton, Ohio-based provider of cold chain shipping and air cargo solutions to the life science and pharmaceutical industries.
Recent exits include the December 2020 sale of PCI, a pharmaceutical and biopharmaceutical global supply-chain solutions provider, to Kohlberg and Mubadala in a $3+ billion transaction. Northfield, a provider of operating room instrument, scope and power system repair services was sold to Agiliti in March 2021 for $475 million.
“Our thesis-driven, executive in residence-centered strategy has enabled the Frazier franchise to become a preferred partner to both serially successful executives and sellers of companies in targeted sectors of interest,” said Ben Magnano, co-managing partner at Frazier. “Our three decades of focusing on the healthcare industry, breadth and depth of our ecosystem and team resonated with both new and existing investors.”
For more on this closing, read senior reporter Brandon Zero’s column.