ArchiMed, a healthcare-focused private equity firm, has hit the €315 million hard-cap on its second fund, Private Equity International has learned.
Med II took four months to raise and counts on commitments from around 30 investors, mainly endowments, foundations, fund of funds, family offices, banks, insurers and sovereign wealth funds from Europe and the US.
Triago advised on the fundraising.
Although the fund can make leveraged buyouts, like a growth capital fund it is mainly focused on low- or no-leverage mid-market deals. “Rather than financial engineering,” it aims to use a combination of “accelerated internationalisation” and research and development spending to drive revenue growth, Archimed’s managing partner Denis Ribon told PEI.
The fund will make investments of between €5 million and €50 million in companies with revenues of between €10 million and €35 million. It will focus on all sectors within the healthcare sector including medtech, biopharma and care services.
The firm’s predecessor fund, 2014-vintage Med I which closed above its €120 million target on €150 million, is now nearly fully invested and has completed its first exit. The exit generated an internal rate of return of around 400 percent, PEI has learned.
According to Ribon, the high deployment rate of the first fund caused the team to more than double the size of the second as they did not think it “healthy” to return to the market every two years.
“It [the larger fund size] will certainly drive an increase in average deal size but there will also be more deals in the fund,” he said.
Lyon-headquartered ArchiMed was founded in 2014 by the former leadership team at private equity firm 3i’s healthcare unit.