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Kirkland Steers Enhanced Healthcare Partners' $300M Fund

Private equity firm Enhanced Healthcare Partners said Tuesday it closed its latest fund with $300 million in capital commitments and access to $600 million in total equity, with guidance from Kirkland & Ellis LLP.

The New York-based firm said it will focus its investments on middle-market health care businesses, particularly those with between $50 million and $250 million in enterprise value. The fund, Enhanced Healthcare Partners LP, will target companies in fields such as physician or pharmacy services, payor services and health care technology, according to the statement.

The fund is the third that the firm’s current partners have led together, and will be used to grow Enhanced Healthcare’s existing strategy of targeting smaller health care companies that are still led by their founders or by entrepreneurs, the announcement said.

“In sectors from medical transportation to dermatology, pharmacy to technology, [Enhanced Healthcare Partners] has proven to be a strategic partner to entrepreneurs and founders seeking to drive strategic outcomes and emerge as industry leaders,” partner Samarth Chandra said in a statement.

Investors in the fund were not disclosed in the announcement.

Enhanced Healthcare Partners currently has 10 active portfolio companies, including urgent care provider NextCare Urgent Care; West Dermatology, a Las Vegas-based physician practice management company that operates dermatology clinics; and medical transportation company Priority Ambulance, according to its website.

The firm generally looks to invest about $10 million to $50 million in each of its portfolio companies, its website says.

A number of other private equity firms have also recently raised funds targeting the health care space. Connecticut-based private equity firm Atlantic Street Capital said Sept. 4 that it had closed a $500 million fund that will target lower-middle-market companies in areas including retail, health care and business services.

Varsity Healthcare Partners said in August that it closed its third fund after raking in $417 million from limited partners, with plans to focus on lower-middle-market health care companies.

And Welsh Carson Anderson & Stowe said in July that its latest, $4.3 billion private equity fund would focus on investments in health care and technology.

Representatives for Enhanced Healthcare Partners did not immediately respond to requests for comment on Tuesday.

The firm is represented in the fundraising by Kirkland & Ellis LLP.
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