Washington, D.C. area-based NaviMed Capital, a healthcare-focused private equity firm, has closed its second fund at $290 million. NaviMed Partners II’s limited partners include endowments, insurance companies, pensions, financial institutions, multi-family offices and funds of funds. Ropes and Gray LLP served as legal advisor on the fund while Moelis & Company served as financial advisor and placement agent.
WASHINGTON (PRWEB) APRIL 14, 2021
NaviMed Capital, a leading healthcare focused private equity firm based in the Washington, DC area, today announced the closing of its second fund, NaviMed Partners II (“Fund II”). The substantially oversubscribed new fund attracted $290 million of total commitments, more than doubling the size of its predecessor fund. With the new fund, NaviMed now manages more than $400 million of capital commitments.
NaviMed will continue to focus on control investments in fast growing lower middle-market healthcare companies. The firm focuses on healthcare services, healthcare IT, hospital products, and pharmaceutical services businesses which are poised to benefit from the value-based care and technology innovation forces reshaping the industry. NaviMed typically invests in profitable private companies with up to $10 million of EBITDA and double-digit annual revenue growth. The firm has invested in 9 platform companies and completed more than 30 total acquisitions since 2013.
The announcement of Fund II follows the news last week of the announced sale of NaviMed portfolio company Velocity Clinical Research, a clinical trial services company (1). Velocity was founded in December 2017 by NaviMed with two initial acquisitions. NaviMed’s successful investment in Velocity exemplifies the firm’s strategy of constructing platforms in attractive markets with founding acquisitions and growing those platforms in partnership with business owners and exceptional management teams.
“We truly appreciate the support from our globally diversified group of new and returning investors, which include endowments, insurance companies, pensions, financial institutions, multi-family offices, and funds of funds,” said NaviMed co-founder and Managing Director, Dr. Bijan Salehizadeh.
“NaviMed will continue to execute our proven strategy in Fund II. We partner with business owners to build upon the foundations they have created, driving growth through new human capital, regulatory and policy insights, and funding for both internal initiatives and complementary acquisitions,” said NaviMed co-founder and Managing Director, Ryan Schwarz.
This fund continues the “platform creation” investment strategy that has been successfully employed by the co-founders of NaviMed throughout the course of their careers in private equity investing.
The NaviMed senior team includes co-founders and Managing Directors Brian Canann, Bijan Salehizadeh, MD, and Ryan Schwarz as well as an experienced investment and operations team that the firm has significantly expanded over the last several years.
NaviMed’s investment team is buttressed by a strong group of Senior Advisors and Health Policy Partners comprised of senior healthcare executives, academics and former senior government officials with deep healthcare policy experience. These Senior Advisors and Health Policy Partners serve as resources to NaviMed’s investment team and to its portfolio companies.
Ropes and Gray LLP served as legal advisor and Moelis & Company served as financial advisor and placement agent.
(1) Velocity Clinical Research acquired by GHO signalling evolution of clinical trial site industry, April 8, 2021 https://www.prnewswire.com/news-releases/velocity-clinical-research-acquired-by-gho-signalling-evolution-of-clinical-trial-site-industry-301264417.html
About NaviMed Capital
NaviMed Capital is a Washington, DC-based private capital firm focused exclusively on the healthcare industry. NaviMed invests in fast growing lower middle-market healthcare businesses which NaviMed believes are poised to benefit from the reform and technology innovation forces reshaping the healthcare industry. The firm focuses in particular on healthcare services, healthcare IT, hospital products and pharmaceutical services businesses. NaviMed targets profitable private companies with up to $10 million of EBITDA and double-digit revenue growth. NaviMed’s senior investment team has a track record of value creation spanning, in the aggregate, dozens of investments and more than $11 billion of enterprise value created over the course of their combined careers.
For more information, please visit http://www.navimed.com.