Linden, in strong fundraising market, prepares to close out largest fund yet

Healthcare private equity fundraising has been strong this year – over the past three quarters, 177 funds globally raised about $165.7bn, the second-highest tally since 2008.

Amid heavy fundraising, especially for ‘on-trend’ strategies such as software and healthcare, Linden Capital is set to close out its largest ever fundraising.

The firm, based in Chicago, will hold a final close imminently on its fifth healthcare buyout fund on its $3 billion hard-cap. That is set to be the largest pool Linden has raised in its almost 20-year history.

Healthcare private equity fundraising has been strong this year. Over three quarters, 177 funds globally have raised about $165.7 billion, the second-highest tally since 2008. For North America, 105 funds secured about $100.7 billion, also the second-highest amount since 2008, according to data from affiliate title PEI.

Linden was formed in 2004 by managing partners Anthony Davis and Brian Miller. Founding partner Eric Larson left the firm in 2017. The partners worked together in the 1990s as part of First Chicago Equity Capital’s dedicated team.

It targeted $2 billion for Fund V, for which it held a first close earlier this year. Park Hill Group is working as placement agent on the fundraising.

No one from Linden returned a comment request Thursday.

Linden managed about $4.1 billion as of December 31, 2020, according to the firm’s Form ADV. It invests in mid-market healthcare companies, generally non-core operations of larger corporations and publicly traded companies, the Form ADV said. The firm targets sectors including human healthcare services, medical products and technology to distribution, the Form ADV noted.

Linden was preparing to sell Evolution Research Group, a network of independent clinical research sites, affiliate title PE Hub reported in October. Harris Williams was advising on the process, which was expected to launch in early 2022, PE Hub wrote. Linden backed ERG in 2018.

The firm also publicly listed HydraFacial, an aesthetic skin health specialist, earlier this year through its $1.1 billion merger with Vesper Healthcare Acquisition Corp. The combined entity, The Beauty Health Co., began trading on Nasdaq in May.

In October, the firm said it hired former Blackstone Group principal Alex Greeley as a partner on the structured capital team. In July, Linden said it closed its debut non-control, structured capital fund on $355 million.