Altaris Capital Partners kicked off fundraising for its fifth healthcare fund and already has a big investment from New Jersey Division of Investment, according to meeting documents.
The system committed $100 million to Altaris Health Partners V, which the State Investment Council reviewed at its meeting Wednesday.
The fund has a $2.5 billion target and a $3 billion hard-cap. It has the industry standard 2 percent management fee, 20 percent carry and 8 percent hurdle. Altaris itself will make a 10 percent commitment to the fund.
That target is more than triple Altaris’s previous healthcare fund, which targeted $800 million and had a $1 billion hard-cap, as Buyouts reported.
The fund will make both majority and minority investments, which will include buyouts, corporate carve-outs, break-ups, corporate partnerships, take-privates and recapitalizations.
The documents also provided performance data for the firm’s four previous healthcare funds. Fund I had a 2003 vintage, a 13.1 percent net internal rate of return and a net 1.73x total value to paid-in multiple. Fund II, a 2008 vintage, generated a 25.5 percent IRR and 2.57x TVPI.
Fund III, a 2014 vintage, produced a 30.3 percent IRR and 1.78x TVPI, and 2018 vintage Fund IV was pulling a 19.9 percent net IRR and a 1.15x TVPI.
Altaris was founded in 2003 by George E. Aitken-Daives and Daniel G. Tully. The firm did not respond to a request for comment.
In December, the firm acquired “substantially all” of 3M’s drug delivery business in a $650 million deal, according to sister title PE Hub.
Action item: read Altaris Capital Partner’s form ADV here.
Correction: this post and headline have been updated to reflect that Altaris’s fifth healthcare fund is targeting triple its predecessor, not double.
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