Consonance Capital Partners (CCP), the private equity arm of Consonance Capital, has held a final closing of a new $500 million healthcare private equity fund. The fund was oversubscribed, surpassing its $350 million target and reached its hard cap of $500 million.
“We are pleased to announce the final closing of our first private equity fund at a level that exceeded our target,” said Dr. Mitchell Blutt, CEO of Consonance Capital. “We continue to extend our leading franchise within the healthcare investment community. This platform enables us to build on our practice of bringing to bear our industry expertise and resources to help management teams and businesses realize their full growth potential.”
CCP’s founders, Mitchell Blutt, MD, Benjamin Edmands, Stephen McKenna, and Nancy-Ann DeParle, have over 65 years of combined experience in private equity investing, primarily within healthcare. The four partners have work together for over a decade at JPMorgan Partners and other firms. The new fund is associated with Consonance Capital Management, a healthcare-focused public equity manager with approximately $600 million of assets under management. Both Consonance Capital Partners and Consonance Capital Management are controlled by Consonance Capital.
“We have successfully attracted a highly diversified collection of pension funds, endowments, insurance companies, family offices and other high net worth platforms and individuals principally from the United States and Europe, who recognize our ability to successfully source investments, assess opportunities, and invest in the lower middle market of healthcare,” said Mr. Edmands, CCP Co-founder and Managing Partner.
Mr. McKenna, CCP Co-founder and Managing Partner added, “We have a strong investment team and a premier group of advisors with a deep experience and understanding of the healthcare marketplace. This team has already made several investments in businesses with high growth prospects.”
In March 2014, CCP completed the recapitalization of Enclara Health, a hospice-focused pharmacy services provider based near Philadelphia in West Deptford, NJ (www.enclarahealth.com); and in May 2014, CCP completed the acquisition of KEPRO, a medical management and cost containment services provider based in Harrisburg, PA (www.kepro.com).
CCP invests in private companies in the lower middle market of the US healthcare industry that generally have between $20 million and $150 million in revenues.
“This is a period of dynamic change in the healthcare industry with significant opportunities to invest in companies that can improve the quality of service, transform the care experience and create a more efficient and effective healthcare sector,” said Ms. DeParle, CCP Co-founder and Partner and former Deputy Chief of Staff for President Barack Obama. “We believe that our fund is ideally suited and sized to help lead this change through our investments, insights, expertise and support. We will continue our strategy of sourcing partnerships and investments with companies that are capitalizing on new healthcare niches.”
Consonance Capital is a healthcare investment firm that invests across the healthcare sector. Private investments, which include growth equity, leveraged buyouts, and recapitalizations, are made under the direction of Consonance Capital Partners. Public investments are made under the direction of Consonance Capital Management, a long and short public equity manager. Consonance Capital was founded in 2005 and is based in New York (www.consonancecapital.com).
Monument Group served as placement agent and Latham & Watkins provided fund formation counsel.
2014 PEPD • Private Equity’s Leading News Magazine • 7-22-14