Great Point Partners has held a final closing of Great Point Partners III LP (GPP III) at its hard cap of $306 million. The new fund was oversubscribed and exceeded its initial target of $250 million.
Limited partners in GPP III include endowments, foundations, family offices, banks, and pension funds. In addition, Great Point’s investment team and members of the firm’s CEO Advisory Board invested in the new fund and together have committed approximately 8% of GPP III’s committed capital.
“We are pleased to announce our final close,” said Jeffrey Jay, MD, co-founder and managing director of Great Point. “We were gratified to receive strong support from both our existing investors, many of whom have been invested with us since the inception of our private equity strategy in 2005, and a select group of new leading institutional limited partners.”
Great Point makes both control and minority investments of $7 million to $50 million in healthcare companies that are based in the US, Canada or Western Europe. Typical targets will have revenues of $10 million to $100 million and $2 million to $12 million of EBITDA. Sectors of specific interest within healthcare include biopharmaceutical supply chain services and products, hospital outsourcing and services, information technology-enabled services, medical devices, and diagnostics.
“We see the success of this fundraise as a clear endorsement by our investors of our growth buyout and growth recapitalization investing model, pro-active sourcing strategy and deep health care expertise,” said David Kroin, co-founder and managing director.
The new fund has already invested 30% of its committed capital in three companies: SteriPack, a Mullingar, Ireland-based contract manufacturing and value-added services company serving the medical device and pharmaceutical industries (June 2019); Tergus Pharma, a Raleigh, NC-based contract development and manufacturing business for topical dermatology pharmaceuticals (June 2019); and Bionova Scientific, a Fremont, CA-based biologics contract development and manufacturing organization (June 2019).
Great Point’s first fund was raised in September 2006 with $156 million of capital and its second fund followed in December 2013 with $215 million of capital. Great Point was founded in 2003 and is headquartered in Greenwich, CT (www.gppfunds.com).
Morrison Cohen provided legal services to Great Point for this fundraise.
© 2019 Private Equity Professional | August 14, 2019