New firm 1315 Capital has raised its first healthcare fund--and it's eschewing R&D-based therapeutics play entirely. The firm had a final close on the fund of $200 million and it's already made a handful of investments out of it.
The Philadelphia, PA-based firm is focused specifically on offering expansion and growth capital to commercial-stage specialty pharmaceutical, medical technology and healthcare services companies. The firm offers three "operating teams," one for each of these segments that are staffed with experienced operational executives.
"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 1315 Capital co-founder and Partner Michael Koby in a statement. He was previously a managing director at private-equity focused family office Palm Ventures and with healthcare growth equity firm Galen Partners before that.
The firm already has a trio of initial investments in therapeutic and device dermatology company Encore Dermatology, specialty pharma JDS Therapeutics and orthopedic oncology device player Onkos Surgical.
1315 Capital is particularly interested in companies in these healthcare sub-segments that have the potential to scale rapidly without too steep of an investment from small platform companies into sizeable businesses with the aid of these experienced operating teams.
It plans to invest about $10 million to $20 million per company. Each portfolio company must have the potential to reach sizeable revenues--about $100 million in revenues is a target--as well as to be a potentially attractive acquisition or public market candidate.
"Consolidation within healthcare has provided opportunities for innovation, particularly in niche markets, and we are committed to working with exceptional management teams to fill needs in the healthcare market and build value for our investors," summed up 1315 co-founder and Partner Adele Oliva. She was previously with Quaker Partners and, prior to that, the co-head of U.S. Healthcare at private equity firm Apax Partners.
- here is the release