DW Healthcare Partners (DWHP) has announced the closing of its inaugural private equity fund after raising $88 million from 14 private institutions and 23 individuals. The four managing directors invested $13 million of their own money in the fund. The fund will take equity positions of up to $15 million in private, U.S.-based healthcare companies in the medical device, product, services, and specialty distribution sectors. DWHP will also provide strategic guidance to its portfolio companies, with the goal of increasing their sales to $100 million and seeking exit opportunities in three to five years.
"We know what business owners are going through because we have been there ourselves," said Skip Klintworth, co-founder and managing director. "Having built and profitably sold 26 healthcare companies, we have encountered and overcome many of the challenges they now face. We intend to put our experience, not just our capital, to work to help proven managers grow and sell their businesses."
DWHP seeks to partner with profitable companies and proven management teams, assisting them in positioning their companies for high-return exits by implementing the most appropriate plan for organic and acquisition-enhanced growth.
"Many owners naturally work hard to build their businesses into profitable enterprises," said Dr. John Benear, co-founder and managing director. "At some point, however, they may need a partner to help them take their businesses to the next level. Our capital investment mitigates their personal risk, and our experience and industry relationships add value over the long term."
The fundraising environment for first-time funds has been particularly difficult in recent years. "Raising the fund in the recent investment environment was not an easy process," said Andrew Carragher, co-founder and managing director. "We are pleased with our fundraising success and are focused on working with those healthcare companies that can most benefit from our resources and expertise."
In April 2004, Barrie Keiser joined DWHP as its fourth managing director. Berchwood Partners LLC, based in New York City, acted as the sole and exclusive placement agent for DWHP.
