Atlanta-based BIP Capital will exit its stake in Ingenious Med, a healthcare workflow solution. The total transaction is valued at approximately $110 million, and will generate a 9x return for BIP Capital’s stake.
The company is being acquired by Boston-based North Bridge Venture Partners. The investment will come from North Bridge’s growth equity group, which makes investments between $15-75 million in either majority or minority stakes.
BIP invested in the company through its seed fund and Fund I vehicles. BIP plans to maintain an interest in the company through its second fund.
“Our Seed and Fund I Investors have been in the Ingenious Med investment for more than six years, so it is a good time for us to realize a handsome return for them,” said Mark Buffington, managing partner at BIP Capital. “We are retaining a position in Ingenious Med through Fund II because we still believe in the Ingenious Med story.”
Investment bankers with Houlihan Loukey ran the Ingenious Med sale process.
BIP invested alongside another firm, Nashville-based Council Capital, which also exited its stake. Terms of that part of the transaction were not disclosed.
Council is currently in market for its third fund, which has a $125 million target according to SEC filings made last week. Council makes growth and early-growth investments in healthcare companies in North America. The firm is also part of TNInvestco, an economic development program created in 2009 by the State of Tennessee to spur the growth of high potential Tennessee companies.