RoundTable Healthcare closes Equity Fund IV at $650m

 The new fund drew 90 percent of its commitments from existing investors.  

RoundTable Healthcare Partners has closed its fourth private equity fund at its hard cap of $650 million after less than two months in the market.

Investors in Equity Fund IV included the Northwestern University and University of Notre Dame endowments and The Church Pension Fund, according to a source familiar with the fundraising effort.

About 90 percent of the firm’s existing limited partners re-upped for this fund and a $200 million mezzanine debt fund raised at the same time.

“Equity Fund IV and Capital Fund III will allow us to continue our strategy of investing in healthcare companies that can benefit from our strong operating focus,” said RoundTable founding partner and management committee chairman Lester B. Knight.  

RoundTable’s new equity fund will invest $20 million to $100 million in a wide range of healthcare businesses with a typical enterprise value of $50 million to $250 million.

Its will pursue the same strategy as its previous vehicle of focusing on largely founder-owned companies and corporate carve outs.

Equity Fund III, a 2010-vintage, $600 million equity fund is roughly 80 percent invested, with the remainder of capital targeted towards add-on acquisitions, the source said.

RoundTable has made new hires in connection with its latest fundraising, naming two portfolio company CEOs, Pierre Frechette and Thomas Kapfer, as senior operating partners and portfolio company CFO Richard Adloff as an operating partner. Adloff will lead CFO responsibilities for all the private equity firm’s portfolio companies.

RoundTable executive Andrew Hochman was promoted to partner, where he will have greater origination responsibilities.

Davis Polk & Wardwell served as counsel to RoundTable for its latest fundraising efforts.