{"id":36107,"date":"2022-10-18T17:33:25","date_gmt":"2022-10-18T17:33:25","guid":{"rendered":"http:\/\/www.brandon.ddtest.info\/multisite-test\/varsity-healthcare-partners-collects-600m-plus-for-fund-4\/"},"modified":"2022-10-18T17:33:25","modified_gmt":"2022-10-18T17:33:25","slug":"varsity-healthcare-partners-collects-600m-plus-for-fund-4","status":"publish","type":"post","link":"http:\/\/www.brandon.ddtest.info\/multisite-test\/varsity-healthcare-partners-collects-600m-plus-for-fund-4\/","title":{"rendered":"Varsity Healthcare Partners collects $600M-plus for Fund 4"},"content":{"rendered":"<p> \n<\/p>\n<div>\n<p><strong>Varsity Healthcare Partners held<\/strong> a first close for Fund IV in recent weeks, surpassing its $600 million target, <em>sources tell Axios.<\/em> <\/p>\n<p><strong>Why it matters: <\/strong>Private equity firms have experienced a fundraising traffic jam the last several months and the market <a class=\"gtmContentClick\" data-vars-link-text=\"could remain challenging\" data-vars-click-url=\"https:\/\/www.buyoutsinsider.com\/the-worst-pe-fundraising-market-since-the-gfc\/\" data-vars-content-id=\"257742ad-4eb1-42a6-a708-513bc5eca495\" data-vars-headline=\"Scoop: Varsity Healthcare Partners rakes in $600M-plus for Fund 4\" data-vars-event-category=\"story\" data-vars-sub-category=\"story\" data-vars-item=\"in_content_link\" href=\"https:\/\/www.buyoutsinsider.com\/the-worst-pe-fundraising-market-since-the-gfc\/\" target=\"_blank\" rel=\"noopener\">could remain challenging<\/a> into 2023 if economic turbulence persists, but pockets of U.S.-based health care are still garnering strong LP interest.<\/p>\n<p><strong>Zoom in: <\/strong>LPs are distributing more capital across fewer funds in health care, Preqin data show, pointing to a bifurcation in quality as LPs get pickier about which GPs they put their money behind. <\/p>\n<ul>\n<li>Year to date, 71 U.S.-focused health care funds have raised an aggregate of $23.3 billion, according to the data. <\/li>\n<li>2021 closed the year with 111 new health care funds raising just $18.3 billion combined, while 2020 finished with 77 funds totaling $17.4 billion, per Preqin.<\/li>\n<\/ul>\n<p><strong>The big picture: <\/strong>The fundraise caps off a busy year for Varsity \u2014 as both a buyer and a seller \u2014 all while the lower-middle market firm has grown its roster and physical footprint. <\/p>\n<ul>\n<li>In August, Varsity completed its minority investment in Aspirion, supporting Linden Capital Partners&#8217; majority acquisition of the revenue cycle management specialist. The deal commanded a $650 million to $700 million valuation, <a class=\"gtmContentClick\" data-vars-link-text=\"Axios reported\" data-vars-click-url=\"https:\/\/www.axios.com\/pro\/health-tech-deals\/2022\/06\/16\/linden-rcm-aspirion-aquiline-complex-claims-baird-ensemble-argos-enablecomp\" data-vars-content-id=\"257742ad-4eb1-42a6-a708-513bc5eca495\" data-vars-headline=\"Scoop: Varsity Healthcare Partners rakes in $600M-plus for Fund 4\" data-vars-event-category=\"story\" data-vars-sub-category=\"story\" data-vars-item=\"in_content_link\" href=\"https:\/\/www.axios.com\/pro\/health-tech-deals\/2022\/06\/16\/linden-rcm-aspirion-aquiline-complex-claims-baird-ensemble-argos-enablecomp\" target=\"_self\" rel=\"noopener\">Axios reported<\/a>.<\/li>\n<li>In March, Varsity sold Probo Medical, a provider of refurbished medical equipment and parts, to Avista Capital Partners at an <a class=\"gtmContentClick\" data-vars-link-text=\"approximately $450 million\" data-vars-click-url=\"https:\/\/www.axios.com\/2022\/02\/15\/avista-probo-medical-450-million\" data-vars-content-id=\"257742ad-4eb1-42a6-a708-513bc5eca495\" data-vars-headline=\"Scoop: Varsity Healthcare Partners rakes in $600M-plus for Fund 4\" data-vars-event-category=\"story\" data-vars-sub-category=\"story\" data-vars-item=\"in_content_link\" href=\"https:\/\/www.axios.com\/2022\/02\/15\/avista-probo-medical-450-million\" target=\"_self\" rel=\"noopener\">approximately $450 million<\/a> EV, Axios wrote.<\/li>\n<\/ul>\n<p><strong>Yes, and:<\/strong> In September, the PE shop hired former Cressey &amp; Co. partner <a class=\"gtmContentClick\" data-vars-link-text=\"Merrick Axel as a partner\" data-vars-click-url=\"https:\/\/varsityhealthcarepartners.com\/varsity-healthcare-partners-announces-new-senior-addition\/\" data-vars-content-id=\"257742ad-4eb1-42a6-a708-513bc5eca495\" data-vars-headline=\"Scoop: Varsity Healthcare Partners rakes in $600M-plus for Fund 4\" data-vars-event-category=\"story\" data-vars-sub-category=\"story\" data-vars-item=\"in_content_link\" href=\"https:\/\/varsityhealthcarepartners.com\/varsity-healthcare-partners-announces-new-senior-addition\/\" target=\"_blank\" rel=\"noopener\">Merrick Axel as a partner<\/a> to head up a new Chicago office. <\/p>\n<ul>\n<li>It also grew its bench of operating partners, hiring Rosemary Free, former CFO of Vision Innovation Partners; Jay McKnight, former Diversicare Healthcare Services executive; and Robert McElherne, former Humana executive. <\/li>\n<\/ul>\n<p><strong>Flashback: <\/strong>Varsity&#8217;s third fund closed on $417 million in August 2019; Fund II collected $300 million; and Fund I closed on $240 million. <strong>Context: <\/strong>Varsity invests in multi-site health care providers and businesses providing outsourced services and technology to providers and payers. <\/p>\n<ul>\n<li>The PE firm has a buy-and-build playbook, targeting primarily control investments. <\/li>\n<li>It typically writes equity checks in the $30 million to $100 million range but can go up in size with co-investment partners.<\/li>\n<\/ul>\n<p><strong>\ud83d\udc40 What we&#8217;re watching: <\/strong>As a backlog of middle-market firms gears up to fundraise, could that force more near-term health care deal activity as firms consider exits to give LPs a return \u2014 before asking them to re-up? <em>Varsity Healthcare Partners could not be reached.  <\/em><\/p>\n<p><span id=\"midStoryAd\" data-ad-status=\"NO_AD_LENGTH\"\/><\/div>\n\n<br \/><a href=\"https:\/\/news.google.com\/__i\/rss\/rd\/articles\/CBMiXmh0dHBzOi8vd3d3LmF4aW9zLmNvbS9wcm8vaGVhbHRoLXRlY2gtZGVhbHMvMjAyMi8xMC8xOC92YXJzaXR5LWhlYWx0aGNhcmUtcGFydG5lcnMtNjAwbS1mdW5kLTTSAQA?oc=5\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Varsity Healthcare Partners held a first close for Fund IV in recent weeks, surpassing its $600 million target, sources tell Axios. Why it matters: Private equity firms have experienced a fundraising traffic jam the last several months and the market could remain challenging into 2023 if economic turbulence persists, but pockets of U.S.-based health care &hellip;<\/p>\n","protected":false},"author":1,"featured_media":36108,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[161],"tags":[],"_links":{"self":[{"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/posts\/36107"}],"collection":[{"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/comments?post=36107"}],"version-history":[{"count":0,"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/posts\/36107\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/media\/36108"}],"wp:attachment":[{"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/media?parent=36107"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/categories?post=36107"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/tags?post=36107"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}