Accelmed closes $400M fund amid high healthtech demand

The private equity firm Accelmed Partners has closed its second fund, with plans to invest $400 million in the development of commercial-stage health technology companies. 

The oversubscribed fund hit its hard cap after passing its original $300 million target, with a mix of backers including pension funds, insurers, family offices, high net-worth individuals and previous Accelmed limited partners, according to the firm.

“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,” said Accelmed’s founder and managing partner, Uri Geiger, adding how, over the past decade, the firm has helped bring to market “a portfolio of high-growth businesses that have proven resilient to the COVID pandemic.”

Accelmed Fund II will mainly focus on producers of medical devices, diagnostic tests, digital health programs and technology-enabled services with annual revenues between $20 million and $70 million—and also plans to set aside money to support and capitalize on companies that have been able to bring in at least $10 million over the past 12 months despite COVID-19.

The closing of the fund follows up on its first two investments: the July 2020 acquisition of TearLab, a diagnostics company focused on dry eye disease, and taking the lead in a $67 million financing round for NeuroPace, a former Fierce 15 winner developing stimulation treatments for epilepsy. 

Previously, Accelmed’s Fund I closed in 2016 with $130 million in commitments, with investments in the endoscopy manufacturer Cogentix Medical—since acquired by Laborie—as well as Strata Skin Sciences, Keystone Dental, EndoGastric Solutions and other digital health companies.