Martis hits target, eyes hard cap for fourth healthcare pool

Funds standing out in today's environment include the top performers as well as sector specialists that can add exposure to specific strategies an LP may lack.

Martis Capital has hit its target and is heading for its hard cap on what it’s calling Fund IV, a source told Buyouts.

The fund has managed to move through the increasingly turbulent fundraising market since last year. Funds standing out in today’s environment include the top performers as well as sector specialists that can give LPs exposure to specific strategies they may lack.

Martis is among a handful of new firms, rebrands and emerging managers raising in the uncertain environment. LPs are mostly content to stick with their deepest relationships, and even then, they are cutting smaller checks for new commitments.

The firm, based in San Francisco and Washington, DC, launched Fund IV last year targeting $700 million with a $750 million cap. The fund will likely hold a final close in June, the source said. Metric Point Capital is working as placement agent on the fundraising.

Martis focuses on various aspects of the healthcare industry, including services and outsourcing, IT, consumer and wellness, and products and diagnostics.

The fund has already made three deals out of the new pool, including primary care platform Rise Health, which the firm formed alongside Lorient Health late last year; and Alcanza Clinical Research, which it acquired in October. A third deal has been agreed on but not publicly announced, a source said.

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 partners Mario Moreno, Owen 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 $1.9 billion, the Form ADV said.

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