Two executives from The Carlyle Group and a former partner at Highland Capital Partners have founded NaviMed Capital, a Washington DC-based firm that will make late stage venture capital and growth equity investments in the healthcare sector.
The firm is understood to be in the planning stages for its first fund, which a source close to NaviMed said would likely have a $200 million target. The firm will focus on the health services, health IT and medical devices segments of the healthcare industry.
NaviMed will look to establish and grow the international operations of US-based companies, focusing on “the two most powerful transformational themes in healthcare today: globalisation and policy-driven reform of the US healthcare system”, according to NaviMed’s website.
The founders of the firm declined to comment, citing regulatory restrictions.
NaviMed was founded earlier this year by Ryan Schwarz and Brian Canann, who joined The Carlyle Group in 1997 and 2004, respectively. Schwarz led Carlyle’s US healthcare venture capital and growth equity practice, having previously worked for healthcare group Robertson Stephens & Company. Prior to joining Carlyle, Canann worked in marketing at medical technology company Medtronic.
NaviMed’s third co-founder Bijan Salehizadeh also spent several years working in marketing at Medtronic. He was most recently a partner at Highland Capital Partners, which he joined in 2003.
A number of private equity firms have been active in the healthcare sector as of late. Last week, Carlyle signed a ¥11.67 billion (€111 million; $151.8 million) deal to back the management buyout of NIC Corp, a Japanese medical administrative and staffing services provider. Earlier this month, Veronis Suhler Stevenson sold healthcare services company Avatar international to The Riverside Company, generating a more than 4x return multiple, VSS said in a statement.