DW Healthcare Partners closed its latest fund with $610 million in capital commitments under guidance from Kirkland & Ellis LLP, the health care-focused private equity firm said Tuesday.
The firm's fifth fund was oversubscribed and hit its funding cap, DW Healthcare Partners said in a statement. With the close of the fund, the firm said it is managing $1.43 billion in capital.
The Toronto- and Utah-based firm plans to invest in middle-market health care companies, as it has with prior funds, according to the announcement. The financial commitments came from a mix of previous and new investors, DW co-founder and managing partner Andrew Carragher said.
"We believe we have earned [investors'] trust through our long track record, sourcing model and differentiated investment strategy," Carragher said.
The firm has invested in 34 platform companies and 52 add-ons since 2003, and prides itself on its sourcing process, which involves a team working full-time on its proprietary database of health care companies, according to the firm's website.
The funds in DW Healthcare Partners V LP have already been put to work with an investment in migraine treatment Cefaly, the announcement said.
This round of investment tops DW Healthcare's previous fund, which closed in 2017 with $295 million. The firm announced its first realization of that fund in August 2018, when it said it was selling off medical education research company PRIME Education to an undisclosed buyer.
The next month, the firm announced the sale of another portfolio company, Reliant Rehabilitation, to fellow private equity investment firm HIG Capital. The statement did not disclose the amount of the sale.
Representatives for DW Healthcare did not immediately respond to requests for comment.
DW Healthcare is represented by a Kirkland & Ellis LLP team that includes partners Warren R. Goodworth and Jeffrey Kaplan and associates Adam Parks and Emmett Carrier.
M2O Private Fund Advisors acted as placement agent.