New York-based Consonance Capital Partners has closed its debut healthcare fund on the $500 million hard cap. The fund beat its $350 million target and was oversubscribed.
The private equity fund is associated with Consonance Capital Management, a healthcare-focused public equity manager with approximately $600 million of assets under management.
Consonance declined to comment on fundraising.
The vehicle will invest in lower middle market healthcare companies in the US with an emphasis on companies that facilitate cost containment and clinical care. The firm typically targets private or family-owned companies with between $20 million and $150 million in revenues, according to its website, and may also consider acquisitions of non-core businesses from corporations.
The firm is led by former JPMorgan Partners colleagues Benjamin Edmands, Stephen McKenna and Mitchell Blutt. Blutt is also a doctor and previously managed Consonance Capital Fund, a healthcare focused hedge fund. The private equity fund’s investment team includes Sapna Tejwani Jethwa, Sean Breen and Javier Starkand.
The firm has already made two investments from the fund, according to sources familiar with the matter. In March 2014, Consonance completed the recapitalization of Enclara Health, a national hospice-focused pharmacy services provider. Additionally, in May 2014, Consonance completed its acquisition of KEPRO, a leading medical management and cost containment solutions provider for government and private sector clients in the healthcare sector, from the Pennsylvania Medical Society.
The vehicle is approximately 20 percent invested and is understood to be targeting up to 12 companies in total.
Monument Group served as placement agent for fund.