EDG starts dealmaking mid-fundraise

Healthcare-focused firm EDG has already begun deploying capital from its latest fund targeting $150m, according to co-founder Michael Gaffney.

Healthcare-focused firm EDG Partners has collected about $92 million for its second fund, which is targeting $150 million, according to a source with knowledge of the situation.  

EDG makes growth capital investments and buyouts of companies in the healthcare industry in a number of sub-sectors, including products, distribution, business services and IT. The firm came to market with the fund in early 2010 and has deployed roughly $20 million in two transactions, acquiring medical equipment and support services company National Hospice MedEquip in January 2010 and First Call Ambulance Services in April 2011.

“We do everything in the healthcare space that isn’t life science risk-based,” EDG co-founder Michael Gaffney told Private Equity International.

Gaffney founded the firm in 2004 with managing directors Steve Eaton and Alan Dahl. Gaffney was previously a partner at Allied Capital, where he led the firm’s healthcare investment strategy and focused on mezzanine investments and equity growth capital. Eaton and Dahl were partners at a number of healthcare companies prior to founding EDG.

Eaton previously founded Centennial HealthCare Corporation and acted as its chairman and chief executive officer, with Dahl acting as chief financial officer. Dahl was formerly the CEO of Housecall Medical Resources, a company Eaton and Dahl bought together with Allied.

In April, EDG sold Regency Healthcare Group, which provides hospice care to terminally ill patients, for an undisclosed sum.

Prior to raising Fund II, EDG invested as an unfunded sponsor. The firm has offices in Atlanta and Arlington, Virginia.