H.I.G. Raising Life Sciences-Focused Fund

Florida-based H.I.G. Capital is in the market with a new venture and growth capital fund focused exclusively on life sciences companies.

The firm had allocated about half of its previous venture fund, a $300 million pool, to life sciences investing, according to managing director Aaron Davidson. However, the firm feels the life sciences strategy deserves a dedicated vehicle. H.I.G. Capital will continue its parallel strategies of investing in LBOs and distressed debt, each of which have separate funds, too.

H.I.G. BioVentures II LP will be invested primarily in companies developing therapeutic drugs or medical devices across various sectors and stages, Davidson said. The firm describes its targets as “capital efficient businesses with large market opportunities in underserved geographies, and products with shorter development.”

H.I.G. BioVentures is a newly formed affiliate of H.I.G. Capital. It’s not clear if H.I.G. will raise a new general venture fund, since the firm’s past two venture funds invested in media, semiconductor, software and wireless companies in addition to life sciences plays. The most recent fund is H.I.G. Venture Partners II LP, a $300 million pool of capital that closed in 2005.

For its new BioVentures effort, H.I.G. Capital seeks $250 million in commitments, a source familiar with the situation said, adding that the firm began fundraising several months ago. Davidson declined to comment on the fund’s target and progress.