Consonance Capital Partners (“CCP”), the private equity arm of Consonance Capital, a leading healthcare-focused investment firm, announced the final closing of its $500 million healthcare private equity fund. The fund was oversubscribed, surpassing its $350 million target and reaching its fundraising cap of $500 million.
Consonance Capital Partners invests in private companies in the lower middle-market of the U.S. healthcare industry with an emphasis on businesses driving efficiency, cost containment and high quality clinical care to patients. CCP’s founders, Mitchell Blutt, MD, Benjamin Edmands, Stephen McKenna, and Nancy-Ann DeParle, partnered together for over a decade while at JPMorgan Partners and its successor and predecessor entities, and have over 65 years of combined experience in private equity investing, primarily within healthcare. The private equity fund is associated with Consonance Capital Management, a healthcare-focused public equity manager with approximately $600 million of assets under management.
“We are pleased to announce the final closing of our first private equity fund at a level that exceeded our target,” said Dr. Blutt, CEO of Consonance Capital. “We continue to extend our leading franchise within the healthcare investment community. This platform enables us to build on our practice of bringing to bear our industry expertise and resources to help management teams and businesses realize their full growth potential.”
Commenting on the fund’s investor base and investment strategy, Mr. Edmands, CCP Co-founder and Managing Partner, said, “We have successfully attracted a highly diversified collection of pension funds, endowments, insurance companies, family offices and other high net worth platforms and individuals principally from the United States and Europe, who recognize our ability to successfully source investments, assess opportunities, and invest in the lower middle market of healthcare.”
McKenna, CCP Co-founder and Managing Partner added, “We have a strong investment team and a premier group of advisors with a deep experience and understanding of the healthcare marketplace. This team has already made several investments in businesses with high growth prospects.”
DeParle, CCP Co-founder and Partner and former Deputy Chief of Staff for President Barack Obama, continued, “This is a period of dynamic change in the healthcare industry with significant opportunities to invest in companies that can improve the quality of service, transform the care experience and create a more efficient and effective healthcare sector. We believe that our fund is ideally suited and sized to help lead this change through our investments, insights, expertise and support. We will continue our strategy of sourcing partnerships and investments with companies that are capitalizing on new healthcare niches.”
In March 2014, Consonance Capital Partners completed the recapitalization of Enclara Health, a national hospice-focused pharmacy services provider, with the aim to expand the company’s reach in the niche hospice pharmacy benefit manager (“PBM”) sector and enable Enclara to capitalize on its innovative service offerings and mail order infrastructure. Additionally, in May 2014, CCP completed its acquisition of KEPRO, a leading medical management and cost containment solutions provider for government and private sector clients in the healthcare sector, from the Pennsylvania Medical Society.
Monument Group served as placement agent for Consonance Capital Partners, while Latham & Watkins LLP provided fund formation counsel.
Consonance Capital is a healthcare investment firm that invests broadly across the healthcare landscape. Private investments, which include growth equity, leveraged buyouts, and recapitalizations, are made under the direction of Consonance Capital Partners, a private equity manager. Public investments are made under the direction of Consonance Capital Management, a long/short public equity manager. Consonance Capital was established in 2005 and is located in New York City.