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SHS closes fourth healthcare fund on €125m

The life sciences and medical technology investment firm will make between 10 and 12 investments and co-investments with the fund

German healthcare investment firm SHS Gesellschaft für Beteiligungsmanagement has closed its fourth fund on €125 million ($140.5 million), surpassing its target of €100 million.

The fund will be invested in medical technology and life science companies in the DACH (Germany, Austria and Switzerland) region, according to the firm.

SHS began fundraising for this latest vehicle, SHS Fond IV, in 2013 and held a first close on €56 million in January of 2014.

Its fourth fund is more than double the size of the previous €50 million ($56 million) SHS Fond III.

The firm finds the DACH medtech space appealing for many reasons, according to Hubertus Leonhardt, managing partner at SHS. The region is home to “world class engineering and competent study centers and internationally renowned key opinion leaders,” he said in an email to Private Health Investor. There is also a “more favorable and cheaper approval process compared to that of the US.”

The firm has already drawn down funds from the vehicle for three minority investments in medtech companies. These businesses include robotic surgery company AOT, cardiology technology company Vimecon and dental implant manufacturer TRI Dental Implants.

The firm also has majority investments in the pipeline, according to Leonhardt.

SHS plans to make a total of 10 to 15 investments with the fund, with a maximum investment of €20 million. It is also open to larger co-investments. The firm will take both majority and minority positions in its portfolio companies and pursue a variety of strategies for growing the businesses, from tech deals and buy-and-build to organic growth.

The firm is also planning exits from two SHS Fond III portfolio companies, whose names it is not disclosing, within the next couple quarters.

This story originally appeared on Private Health Investor