Private Equity Firm Raises $1.4 Billion for Hit Investment Fund

Private Equity Firm Raises $1.4 Billion for Hit Investment Fund. A stethoscope on a laptop keyboard.Seattle private equity firm Frazier Healthcare Partners has raised $1.4 billion for a new buyout fund targeting midsize health-tech startups. The Frazier Healthcare Growth Buyout Fund X, L.p., plans to allocate between $50 million and $300 million of equity among the companies in which it invests.

Key focus areas will include pharmaceutical services, hospital outsourcing and specialty distribution. The fund reached its hard cap and was oversubscribed, indicating there’s still strong demand for new health care IT and data analytics solutions. Those supporting the fund included financial institutions, pension plans, foundations and endowments, and sovereign wealth funds.

This is the 10th health care private equity fund that Frazier has closed. Recent investments include the corporate carveout of MedData from Mednax in October 2019. MedData is a leading provider of technology-enabled, revenue cycle-management services for hospitals, health systems and health care providers. Recent exits include the December 2020 sale of PCI, a leading pharmaceutical and biopharmaceutical global supply-chain solutions provider, to Kohlberg and Mubadala in a $3.0+ billion transaction. Northfield, a provider of operating room instrument, scope and power system repair services was sold to Agiliti in March for $475 million.

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