DW Healthcare Closes Fund III At $265 Million

Firm: DW Healthcare Partners

Fund: DW Healthcare Partners III

Target: $250 million

Amount Raised: $265 million

Placement Agent: Berchwood Partners

DW Healthcare Partners has closed its third fund with $265 million in commitments, topping its $250 million target, the Park City, Utah-based buyout shop announced. The firm did not identify any investors in the new fund but said they include pension plans, foundations, fund of funds, high net-worth individuals and family trusts.

The firm also said that it opened an office in Toronto. The new office will enable DW Healthcare Partners to cover the eastern coast of the United States and Canada more efficiently, the firm said in its press release. The Toronto office is staffed with co-founder Andrew Carragher and managing director Rod Boone along with six other professionals.

During the course of fundraising, DW Healthcare Partners closed three deals with the new fund, DW Healthcare Partners III, investing $80 million of capital altogether into Z-Medica, a maker of hemostatic dressings and related products, Health & Safety Institute, a provider of safety and emergency care content and training; and Med-Pharmex, a veterinary drug maker.

The firm, founded in 2002, seeks to invest $15 million to $40 million per transaction in profitable, health-related North American companies with histories of strong growth and EBITDA of $4 million or above, according to its Web site. Although the firm favors control deals, it also will consider minority investments.

DW Healthcare Partners’s inaugural fund raised $88 million in 2002, while its sophomore vehicle raised $162 million and closed in 2006, according to the Thomson One private equity database. The firm said it manages more than $500 million in committed capital

Berchwood Partners served as placement agent for DWHP Fund III, the firm said.