September 26, 2006
GREENWICH, CT – Great Point Partners, which manages a $500 million value based health care hedge fund, has just closed its debut private equity fund, Great Point Partners I LP, with $156 million in commitments, well ahead of the vehicle’s $100 million target, Managing Director Dr. Jeffrey Jay told LBO Wire.
The firm decided to raise a separate private equity fund to pursue the health care private equity investment opportunities it was seeing. Its hedge fund, “the Great Point Biomedical Value Fund, remains focused solely on publicly traded companies, with an emphasis on structured investments often referred to as PIPEs,” said Dr. Jay.
The firm started raising the PE fund late last year and held several closings, said Dr. Jay. Investors in the fund include University of Virginia, Georgetown University, Tufts University and Goldman Sachs & Co. The fund also received $11.5 million in commitments from general partners of the firm. The firm did not use a placement agent.
The fund plans to make proprietary growth equity investments in such health care sectors as medical devices, information services, and outsourcing services, taking both non-control and control stakes, said Dr. Jay.
It will look to invest between $10 million and $25 million of equity per deal, said Dr. Jay, and is targeting lower middle market growth companies with $2 to $10 mm of EBITDA because it believes there is less competition there.
Great Point was co-founded in 2003 by Dr. Jeffrey Jay, the former head of health care investments at J.H. Whitney along with Managing Director David Kroin. The firm has a total of 20 investment professionals, including seven that are dedicated to private equity.
Reach Great Point at 203-971-3300.
This document is intended solely to provide information regarding Great Point Partners’ potential financing capabilities for prospective portfolio companies.