Oversubscribed Fund II Closes at Hard Cap DemonstratingSubstantial Investor Support for Accelmed’s Strategy of Accelerating Value and Scaling Innovation in Lower Middle Market HealthTech
Fund II Continues Focus on Identifying Attractive Investment Opportunities Across U.S. Medical Devices, Diagnostics, Digital Health and Technology-Enabled Healthcare Services
Builds on Strong Momentum Following Fund II’s Investments in TearLab and NeuroPace
March 17, 2021 07:00 AM Eastern Daylight Time
AVENTURA, Fla.--(BUSINESS WIRE)--Accelmed Partners (“Accelmed”), a private equity firm focused on acquiring and investing in U.S. commercial stage, lower middle market HealthTech companies, today announced the successful close of its oversubscribed second fund, Accelmed Fund II, LP (“Fund II” or the “Fund”) at the Fund’s hard cap of $400 million, exceeding its original $300 million target. Fund II received significant backing from new investors globally, including pension funds, insurers, family offices, and high net worth individuals, as well as from existing Accelmed limited partners.
For more than a decade, Accelmed has leveraged its deep HealthTech industry experience, operational and financial expertise, and strong relationships across the field to help management teams at the companies it acquires control of or invests in position their businesses for future growth and success.
Consistent with Accelmed’s strategy of developing and transforming U.S. HealthTech companies, Fund II identifies and executes on investments in medical devices, diagnostics, digital health, and technology-enabled healthcare services with a focus on control-oriented opportunities in companies with revenues typically between $20 million and $70 million. Fund II also provides a certain allocation of non-control growth capital to companies within Accelmed’s domain expertise with revenues greater than $10 million over the past twelve months. The Fund is designed to build upon Accelmed’s strong track record of capitalizing on innovative sector opportunities at a time when the demand for technology-enabled healthcare solutions has never been greater.
Dr. Uri Geiger, Founder and Managing Partner of Accelmed, said, “We have built our business on the belief that increasing the conversion of healthcare and technology materially improves individuals’ lives, addresses society’s unmet healthcare needs, and ultimately drives down the cost of healthcare. The strong support Fund II received from a diverse group of institutional investors and prominent family offices is a testament to their confidence in our strategy and ability to identify companies at the nexus of healthcare and innovation and partner with them to drive significant value.
“Over the past decade, we have served as a trusted value-add partner to HealthTech companies and management teams who are looking to take their businesses to the next level but lack the resources and expertise to execute on these aspirations on their own. The result has been broader access to innovative HealthTech solutions and a portfolio of high-growth businesses that have proven resilient to the Covid pandemic. We look forward to continuing to meet the needs of lower middle market HealthTech companies with the ongoing deployment of Fund II.”
The closing of Fund II follows its first two investments, which included the acquisition of TearLab, a leading ocular surface diagnostics company for dry eye disease in July 2020, and leading a $67 million financing round to support the commercial expansion of NeuroPace, a developer of brain technology for individuals who suffer from neurological disorders. Fund II’s predecessor vehicle, Accelmed Fund I, LP (“Fund I”), closed in 2016 with $130 million in capital commitments, built on prior work executed by the team on similar strategies as part of the Arkin family office. Fund I investments included Cogentix Medical, which was acquired by Laborie in 2018 for $240 million, Strata Skin Sciences (NASDAQ: SSKN), Keystone Dental Inc., and EndoGastric Solutions Inc., among other digital health companies.
About Accelmed Partners
Accelmed is a U.S.-based private equity firm focused on acquiring and investing in U.S. commercial stage, lower middle market HealthTech companies. Since 2009, Accelmed has deployed over $400 million into companies spanning medical devices, diagnostics, digital health and technology-enabled healthcare services. Led by Founder and Managing Partner Dr. Uri Geiger, together with General Partners Evan Norton, Lior Shav and Dr. Rafael Torgovicky, Accelmed seeks to accelerate value and scale innovation across the HealthTech field by bringing to bear the team’s industry experience, operational and financial expertise, and strong global relationships. For more information, please visit https://www.accelmed.com/.
Amanda Klein/Alex Jeffrey
Gasthalter & Co.