New Fund Allows DW Healthcare to Get Back to Roots

DW Healthcare Partners (DWHP) has closed its latest fund, DW Healthcare Partners Small Cap LP (“Founders Fund”) with $210 million in capital commitments.

DWHP was founded in 2002 and with the closing of the Founders Fund the firm now has $1.3 billion of total capital under management. Back in July 2019, DWHP held an oversubscribed and hard cap close of its fifth fund with $610 million of capital, and the firm’s fourth fund closed in March 2017 with $295 million of capital.

The Founders Fund will invest in companies that have from $3 million to $6 million in EBITDA and has already invested in TubeWriter, a Texas-based manufacturer of semi-automated labelers that print directly on test tubes and other high-use laboratory consumables; and DermLite, a California-based designer and manufacturer of dermatoscopes – handheld devices used by medical professionals to examine skin lesions and moles.

“DWHP has been committed to identifying, building, and scaling small to medium-sized healthcare companies for over twenty years,” said Andrew Carragher, a co-founder and the managing partner of DWHP. “As we have raised larger funds, launching this dedicated smaller fund focused on small companies is a logical next step. This fund brings us back to our original roots. The Founders Fund has all the benefits of our firm-wide expertise, deep network of experienced operators and executives, and deal sourcing engine, which has over 66,000 healthcare companies in its database.”

“We believe that our deep industry knowledge and operational expertise will be of great value to the companies partnering with us through the Founders Fund,” said Gabe Becher, a managing director at DWHP. “We are grateful that new and existing investors have entrusted us with pursuing these smaller organizations through the Founders Fund.”

M2O Private Fund Advisors was DWHP’s United States placement agent while August Capital was the firm’s placement agent in Canada. Kirkland & Ellis provided legal services.

DW Healthcare Partners invests in North America-based healthcare companies that have at least $3 million of EBITDA. The firm was founded in 2002 and has offices in Toronto, Ontario and Park City, Utah.

© 2023 Private Equity Professional | March 29, 2023