Altaris launches Fund III targeting $425m

The healthcare-focused firm is targeting slightly more than its $400m Fund II to invest in businesses in the US and Western Europe.

New York-based Altaris Capital Partners is seeking $425 million for its Fund III, according to documents filed with the US Securities and Exchange Commission.

Altaris focuses on healthcare and medical technology companies in the US and Western Europe. The firm targets businesses in the pharmaceuticals, medical devices, services and healthcare IT sectors, making control and significant minority investments of between $15 million and $50 million per transaction. UBS will receive sales compensation for Fund III, according to SEC documents.

Altaris was not available for comment at press time.

The target on Fund III is slightly larger than the firm’s $400 million predecessor fund, AIG Altaris Health Partners II. Limited partners in Fund II include the Connecticut Retirement Plans and Trust Fund, the City of Philadelphia Board of Pensions and Investment and the Massachusetts Mutual Life Insurance Company, according to Private Equity International’s Research & Analytics division.

Healthcare funds have continued to attract significant interest from limited partners in recent months. Utah- and Toronto-headquartered DW Healthcare Partners closed its Fund III in February on $265 million, more than 60 percent larger than its $162 million Fund II. Water Street Healthcare Partners is also in the process of investing its $750 million Fund III, which closed last year after less than two weeks in market.

Altaris Capital Partners was founded by partners George Aitken-Davies, Michael Kluger and Daniel Tully, all of whom previously worked in Merrill Lynch’s private equity and healthcare investment banking groups.

Altaris manages $775 million of capital and has invested in more than 35 healthcare companies since its founding.