Martis Capital speeds toward target in uncertain market

Martis Capital is on track to hit its $700 million target for investments in various subsectors of healthcare, a person with knowledge of the firm told Buyouts.

Martis is among a handful of young firms seeking capital from limited partners who are generally sticking with their established relationships in the uncertain markets. Firms that have well-defined strategies, with demonstrable track records, will usually get a closer look from potential investors.

“The funds that are doing well from a fundraising standpoint are kind of getting blown out, and then everybody else has a really tough time,” said a fundraising professional.

Martis focuses on various aspects of the healthcare industry, including services and outsourcing, IT, consumer and wellness and products and diagnostics. Past investments include care-management-software company Altruista Health, Atlantic Diagnostic Laboratories, CareHospice, veterinary business WellHaven PetHealth and medtech company HeartFlow.

In November, the firm completed a majority investment in Lighthouse Lab Services alongside existing investor NaviMed Capital and company management. The company provides laboratory build-out and management services to clinical labs in the US.

The firm has collected about $600 million for what it’s calling Martis Partners IV, and will likely hold a final close over the next few months, the person said. It’s not clear if the fund has a hard cap beyond the $700 million target. Partners Mario Moreno and Owen Davis did not respond to a comment request Thursday.

Metric Point Capital is working as placement agent on the fundraising.

Martis, formerly known as Capricorn Healthcare, raised two funds, collecting $250 million for its debut pool, and $350 million for Fund II, Buyouts previously reported.

The firm closed its third fund, its first as an independent shop, on $550 million in 2018. Martis spun out of Capricorn Investment Group, the family office of Jeff Skoll, co-founder of eBay.

Martis is led by Moreno, Davis and Barry Uphoff, who are also the principal owners of the management company, according to the firm’s Form ADV. Martis as of December 31 managed about $1.3 billion, the Form ADV said.

Uphoff formerly worked at Silver Point Capital as a senior investment professional, prior to which he worked at Trivest, where he led healthcare investing. Moreno worked at Martis (and Capricorn) since 2012, prior to which he worked at Carlyle Group in healthcare, his LinkedIn profile said. Davis joined in 2016 after working at Francisco Partners, according to his LinkedIn profile.

Founding partner Shahab Vagefi left Martis last year and joined Thomas H. Lee Partners, Buyouts previously reported.

Martis in December promoted Aseem Nambiar to vice president from director, David Zhang to vice president from senior associate and Charlie Fiessinger to senior associate from associate.