Health care-focused private equity shop Cressey & Co. LP on Monday said it snapped up $1.1 billion from investors for its latest private equity fund and co-investment vehicle, with Kirkland & Ellis LLP guiding the firm.
Cressey scored $995 million in commitments from investors for Cressey & Company Fund VI LP, and an additional $105 million for its related fund. Cressey VI, which closed on June 8, easily exceeded its fundraising target of $750 million.
Cressey said that similar to its other funds, Cressey VI and the co-investment vehicle will be used to invest in various health care services and health-centered information technology businesses across North America. Cressey said it will use a “target, partner, build” strategy, in which the firm invests in businesses and helps accelerate growth “organically and through acquisitions.”
"We thank our investors for the trust they have placed in us and we are excited to capitalize on the attractive investment and value-creation opportunities we see in the services and information technology sectors of the health care market," Cressey partner Peter Ehrich said in a statement Monday.
The Chicago, Illinois, and Nashville, Tennessee-based company did not specify the fund’s investors or the types of entities that contributed to the fund.
Cressey said it is looking to invest in companies with enterprise values between $50 million and $500 million.
The closure of Cressey VI comes 3½ years after the firm wrapped up fundraising on Cressey & Company Fund V LP, scoring $615 million. Between Cressey VI, Cressey V, and Cressey & Company Fund IV LP, which closed in 2010, the company said it manages more than $2 billion in committed capital.
As for Kirkland, the deal comes less than a month after the law firm guided another private equity firm — middle market-focused Mill Point Capital LLC — in closing the firm’s inaugural fund at its $450 million hard cap.
Cressey is represented by Kirkland & Ellis LLP team led by corporate partners Jeffrey Kaplan and Kelly Ryan and associates Daniel McQuade, Nick Carreri and Drew Beres.
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