NovaQuest Private Equity has closed its second fund at $500 million, beating its initial $425 million target. NovaQuest Private Equity Fund II’s limited partners include pension plans, insurance companies, asset managers, private foundations and family offices. Eaton Partners was the placement agent while Ropes & Gray LLP provided legal counsel. NovaQuest invests in lower-middle market companies in North America.
RALEIGH, North Carolina—May 12, 2022 – QHP Capital, L.P. (the “Firm”), the management company for NovaQuest Private Equity (“NQPE”), today announced the final close of its private equity investment fund, NovaQuest Private Equity Fund II, LP (“NQPE II”) at $500 million of LP commitments. NQPE II closed at its hard cap, exceeding the fund’s initial target of $425 million, and was fully committed in less than seven months of fundraising. The oversubscribed fund includes commitments from a diverse group of new and returning investors including pension plans, insurance companies, asset managers, private foundations, and family offices.
NQPE started to deploy its first fund, NovaQuest Private Equity Fund I, in 2018, and is managed by partners Vern Davenport, Jeff Edwards, Ashton Poole, and Michael Sorensen. NQPE utilizes its vast strategic network—including the affiliated fund strategy NovaQuest Product Finance—to invest in tech-enabled Life Sciences and Pharmaceutical Services companies that improve medical outcomes and reduce the overall cost of care. NQPE manages approximately $1.2 billion of assets and has completed seven active platform investments and 11 additional follow-on acquisitions.
“We are grateful for the support we received from our existing limited partners, as well as strong demand from new investors for NQPE II,” said Michael Sorensen, Partner, NovaQuest Private Equity. “As a continuation of the strategy we executed in our first fund, NQPE II will focus on investing in innovative companies in attractive thematic sectors and on partnering with talented management teams to build great companies.”
NQPE targets companies in the lower middle market and utilizes its in-house operating expertise to drive operational improvements and to prepare companies for growth.
“We are proud of the team we have built and the strong partnerships we have formed with the management teams of our companies,” said the NQPE partners. “We will continue to develop and deploy our unique operating system to drive value for our investors and the employees of our portfolio companies.”
Previous NQPE investments include Azurity Pharmaceuticals, a leading provider of drug delivery technology solutions; Clinical Ink, a provider of eClinical data collection technology; and Catalyst Clinical Research, a provider of outsourced clinical services for clinical trials.
Eaton Partners served as the placement agent for NQPE II and Ropes & Gray LLP provided legal counsel.
About NovaQuest Private Equity
NovaQuest Private Equity is a private equity firm that invests in lower middle market healthcare companies primarily in North America. The Firm invests in services and technology companies where a strategic partner and operating resources can accelerate growth, targeting companies in healthcare and pharmaceutical services industries. NQPE invests in the form of buyouts, growth equity, and recapitalizations. For more information, please visit www.novaquest.com/strategy/private-equity/