Private equity company Accelmed Partners has raised $400m funding to invest in commercial-stage health technology companies.
The company has exceeded its original target of $300m in the oversubscribed second fund, which was supported by new investors from across the globe.
The new investors consist of pension funds, insurers, family offices, and high net worth individuals. In addition, the round included existing Accelmed limited partners.
The oversubscribed second fund will allow Accelmed to invest in companies that offer medical devices, diagnostics, digital health, and technology-enabled healthcare services.
Accelmed founder and managing director Dr Uri Geiger said: “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.
“The strong support Fund II received from a diverse group of institutional investors and prominent family offices is a testament to their confidence in our strategy and ability to identify companies at the nexus of healthcare and innovation and partner with them to drive significant value.”
Accelmed will mainly invest in companies with revenues generally between $20m and $70m.
The fund will also allow Accelmed to allocate non-control growth capital to companies within its domain expertise with revenues of more than $10m over the past twelve months.
The closing of the second fund is said to follow Accelmed’s first two investments, which comprises the acquisition of TearLab in July 2020 and a $67m financing round to support the commercial expansion of NeuroPace.
TearLab is an ocular surface diagnostics company for dry eye disease, while NeuroPace is a developer of brain technology for individuals who suffer from neurological disorders.
In 2016, the first fund was completed with $130m in capital commitments. The investments included Cogentix Medical, Strata Skin Sciences, Keystone Dental and EndoGastric Solutions.
Laborie acquired Cogentix Medical in 2018 for $240m.
