1315 Capital has closed its first fund with a wad of $200 million to splash on commercial-stage speciality pharma, med tech and healthcare service companies.
The fund is led by seasoned healthcare investors and 1315 Capital's co-founders Adele Oliva and Michael Koby, and includes a group of investors, including endowments, foundations, state and corporate pension funds, and family offices.
Oliva told FierceBiotech: “Michael Koby and I founded the firm in 2014 with the strong view that there is a substantial opportunity in the smaller side of healthcare growth equity--typically companies with $5 million to $25 million of revenue where deep industry and investing experience in this stage of healthcare is valuable. We also felt there was a more productive way to leverage operating partners and have a unique model.
“Massive consolidation in healthcare over the last 10 years has resulted in hundreds and hundreds of smaller products, now part of larger strategics, not getting significant commercial attention. Some of these products could provide great benefits to a niche market of providers and patients and we see many opportunities across the specialty pharmaceutical and medical technology areas to target these niche markets.
“In addition, within healthcare services, we find device and diagnostic enabled service platforms and more broadly companies focused on cost containment attractive areas for investment.”
She said that the firm has invested in 4 companies to date, with its current fund focused on the U.S. “But we often source opportunities globally and provide a U.S. commercial platform,” she explained.
“Two of our four portfolio companies have products that they sourced from companies whose parents are outside the U.S. Also, I am in touch with a number of my former Apax healthcare colleagues in Europe, India and Australia. I would love to find ways to collaborate with them.”
Oliva has worked on a number of companies’ boards, including: Ascent Healthcare Solutions (acquired by Stryker), Esprit Pharma (acquired by Allergan ($AGN)), Prometheus Labs (acquired by Nestle) and SkinMedica (also acquired by Allergan).
1315 Capital's Operating Partner model is different from other funds as it is run by two executives who have worked together at multiple companies, adding “valuable human capital to the investment equation,” according to the firm.
"Our unique operating partner model leverages not only the CEO, but also the chairman, COO, and CFO relationships, allowing us to provide a more complete set of skills to help navigate diligence, drive decisions, and achieve premium exits," said Koby.
Koby comes from a financial background, previously being the MD at Palm Ventures and before that at Galen Partners, a healthcare growth equity investment firm.
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