Frazier Healthcare Partners has raised a $525 million buyout fund that the Seattle venture capital firm will use to purchase profitable healthcare companies.
“This fundraising allows us to continue our strategy of leveraging the firm’s well-developed, broad network to identify and partner with seasoned healthcare executives — who typically have run much larger companies in the same space and have been private equity backed — to acquire and rapidly grow profitable companies in the lower middle market,” a spokeswoman for the firm told GeekWire.
The new fund — dubbed Frazier Growth Buyout VIII — marks the firm’s first effort to buy profitable healthcare companies. The fund was oversubscribed — meaning there was strong investor demand to participate.
Frazier’s life science team, which is based in Menlo Park, California, will continue to invest from a new $262 million fund that closed last year. Meanwhile, the buyout team — which plans to make eight to 10 investments from the fund — will be based out of Seattle.
The buyout fund will invest in profitable companies with $5 million to $40 million of earnings before interest, taxes, depreciation and amortization. It plans to focus on areas related to pharmaceutical services, medical products and distribution, with investments in buyouts, recapitalizations and corporate carve-outs of larger companies.
Frazier has more than $2 billion in assets under management, and it has bankrolled over 170 companies over the years. Frazier was founded in 1991 by Alan Frazier, a former executive at Immunex.