What You Should Know:
– Frazier Healthcare Partners, a Seattle-based healthcare private equity firm announced the close of its tenth global buyouts fund and 13th fund across buyouts and life sciences. Investment focus will continue to be middle market provider-based businesses, with virtual health as a major component. The oversubscribed $1.4 billion fund, FHGB X, is significantly larger than FHGB IX, which closed at $780M in 2018.
– Frazier, 30 years strong this year, received global support from new and existing limited partners, which represent some of the most prestigious public pension funds, financial institutions, foundations and endowments, family offices, corporate pensions and sovereign wealth funds. The majority of investors from FHGB IX increased their commitment for FHGB X.
– Founded in 1991, Frazier Healthcare Partners, with the addition of FHGB X, has more than $6.2 billion total capital raised.
Thesis-Driven, Executive in Residence-Centric Investment Model
Frazier focuses on acquiring controlling interests in profitable, lower middle-market healthcare companies with EBITDA between $10 million and $75 million where it can invest between $50M and $300M of equity. Investments can take the form of corporate carveouts of private and publicly traded companies, recapitalizations and buy-and-build strategies.
Leveraging its extensive network and human capital team, Frazier pairs proven executives with curated investment theses. This enables the pursuit of unique investment opportunities with the EIR assuming an Executive Chairman or CEO role.
“Our thesis-driven, executive in residence-centered strategy has enabled the Frazier franchise to become a preferred partner to both serially successful executives and sellers of companies in targeted sectors of interest,” said Ben Magnano, co-managing partner at Frazier. “Our three decades of focusing on the healthcare industry, breadth and depth of our ecosystem and team resonated with both new and existing investors.”
Recent Investments & Exits
Recent investments include the corporate carveout of MedData from Mednax (Ticker: MD) in October 2019. MedData is a leading provider of technology-enabled revenue cycle management services for hospitals, health systems and healthcare providers. More recently, in December 2020, Frazier acquired a 50% stake in CSafe Global, a Dayton, Ohio-based provider of cold chain shipping and air cargo solutions to the life science and pharmaceutical industries.
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 2021 for $475 million.