Frazier Healthcare Partners closes $780M growth buyout fund

Nader Naini, Frazier Healthcare Partners managing partner (Frazier)

Investment firm Frazier Healthcare Partners has closed another fund worth $780 million that will be used to help established companies accelerate their growth.

The new buyout fund—based out of the firm’s Seattle office—is intended for “profitable healthcare companies in the lower middle market,” says Frazier, which typically means platform companies in the healthcare and pharmaceutical services and medical products sectors with operating earnings of between $5 million and $50 million.

For its oversubscribed eleventh fund, Frazier overshot its target of $700 million, drawing commitments from endowments, public/private pension funds and financial institutions, and says it will “continue to partner with seasoned healthcare executives to acquire and develop exceptional companies that will reshape the evolving healthcare landscape.”

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Recent deals for Frazier’s growth buyout team include a pair of acquisitions on behalf of United Derm Partners—for Bend Dermatology and Renewal Dermatology & Laser—as well as the takeovers of Vein Clinics of America, specialty pharma group Southside Pharmacy and surgical instrument maker Northfield Medical.

It takes the firm’s total capital under management to more than $4.2 billion, and comes shortly after its life sciences unit unveiled its second $419 million fund to back companies with drugs making the transition from preclinical through clinical proof-of-concept, and another oversubscribed growth buyout fund in November.

The life sciences team led a $9 million investment in gene therapy company and University of Pennsylvania spinout Scout Bio last month, while another recent deal includes putting $20 million behind cancer and infectious diseases startup Mavupharma towards the end of last year.

Discussing the latest fund, Frazier managing partner Nader Naini said, “We are appreciative of the continued support from our existing investors and pleased to have added a few new select blue-chip limited partners that together represent a world-class group of investors.”

“The commitment and confidence they have shown in our team is directly related to our rich 27-year history of developing category-leading healthcare companies.”