GHO raises €975M European healthcare fund

London, where GHO is based (Pixabay/David Mark)

GHO Capital has raised €975 million ($1.1 billion) to invest in European healthcare companies. The fund will back pharma companies as well as developers of medtech products and providers of outsourced services.

London-based GHO established itself as a player in European healthcare investing in 2014 when it set up shop and began raising a fund that would top out at €660 million two years later. GHO went on to use the first fund to back eight companies, two of which it has already exited. 

That track record, coupled with broader changes, has helped GHO raise almost 50% more money for its second fund and, according to Preqin data, become the largest private equity fund focused solely on European healthcare.

“The significant size of the fund reflects the increasing maturity of the European healthcare sector and the level of investor interest and support for developing healthcare businesses that address global issues and trends,” the partners at GHO said in a statement.

GHO has made two investments using the new fund, backing active pharmaceutical ingredient (API) player Sterling Pharma Solutions and bioanalytical testing company BioAgilytix. The first companies backed by the second fund are in line with the composition of the first investment vehicle.

While GHO lists “PharmaBio” among the types of companies in which it invests, it currently has limited exposure to businesses that develop, make and sell their own medicines. VISUfarma, a specialty pharma company focused on eye health, is the one exception. GHO’s other PharmaBio investments are the aforementioned ingredient player and another API supplier, Alcaliber.

Outsourced services is the largest part of GHO’s portfolio, with four of the 10 companies backed to date falling into that category. The API companies grouped in PharmaBio are also adjacent to the outsourced services category. The rest of GHO’s portfolio is made up of companies active in diagnostics and patient services.