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Great Point Partners Closes Fourth Health Care Growth Buyout Fund at $506 Million
Introduction
GREENWICH, CT – Great Point Partners, a global health care investment firm today announced the closing of its fourth lower middle market growth buyout fund, Great Point Partners IV (GPP IV), focused on rapidly growing health care companies in the United States, Canada, and Western Europe. GPP IV, which closed on $506 million was significantly oversubscribed in four months of fundraising and closed at its hard cap.
“Great Point’s combination of both a private and public fund health care strategy enables us to have a team of approximately 30 people dedicated to generating and sharing thematic ideas across the full spectrum of the health care field. This concentration of health care focused talent working cooperatively differentiates our investment process. Since our first private equity fund launched in 2005, our private equity funds have generated a 3.9x gross multiple on realized investments as of March 31, 2022,” said Jeffrey Jay, MD Founding Managing Director.
“Since GPP I, we have focused on lower middle market health care investments in pharmaceutical services and products, health care information technology enabled services, medical contract manufacturing, and health care services. We seek to create long-term value for our investors by maintaining a best-in-class proprietary sourcing program, partnering with great entrepreneurs, and investing in sectors with sustainable tailwinds of growth,” added Noah Rhodes Managing Director.
“GPP IV will target majority and minority investments in profitable companies generally with $1 to $10 million of EBITDA. We are pursuing the same strategy we started two decades ago,” said Rohan Saikia, Managing Director. “We have had particular success helping companies based solely in either the US or Europe become global companies with operations in multiple countries.”
“We are grateful for our investor support, especially in a hectic and crowded fundraising environment,” added Emily St. Thomas, Head of Investor Relations and Marketing for the private equity funds and the public life sciences fund. “We continue to diversify our investor base, particularly in Europe. We manage capital for some of the most sophisticated investors in the world. It is gratifying that with our investors support, our firm is dedicated to investing in companies that improve the health and well-being of people across the globe.”
About Great Point Partners
Great Point Partners, founded in 2003 and based in Greenwich, CT, is a leading health care investment firm with 30 professionals, investing in the United States, Canada, and Western Europe. GPP is currently making new minority and majority private equity investments from GPP III. Including GPP IV, Great Point manages $1.7B of capital in its private funds and public life sciences equity strategy. Great Point Partners has provided growth equity, growth recapitalization, and management buyout financing to more than 200 growing health care companies. The private equity funds invest across all sectors of the health care industry with a particular emphasis on biopharmaceutical services and supplies, alternate site care, medical device, and information technology enabled businesses. The firm pursues a proactive and proprietary approach to sourcing investments and tuck-in acquisitions for its portfolio companies.
Past performance is not indicative of future results and there can be no assurance that any fund will achieve comparable results or avoid substantial losses. The information provided is solely to educate Great Point’s current investors and potential portfolio companies and intermediary partners about Great Point’s performance and does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation of any security or any other product or service by Great Point Partners or any other third party regardless of whether such security, product or service is referenced. Great Point’s private equity funds are closed-end funds and therefore are not accepting any new investors. The net multiple on realized and unrealized investments of the private equity funds is 2.3x which is a ratio equal to the value of distributions made by all funds plus Great Point’s valuation of the fair value of all unrealized investments divided by the total amount of capital paid into the funds as of December 31, 2021. This is calculated after accounting for management fees, carried interest, and all fund expenses. Recalled distributions are subtracted from the numerator and reinvested capital is subtracted from the denominator. Gross multiple on realized investments is a ratio equal to the value of distributions made to date by all funds divided by the total amount of capital paid into the funds to make such investments. Distributions include cash (generated by sale proceeds and dividends) as well as shares from one public company. Gross multiple on realized investments does not take into account management fees, carried interest, and fund expenses which in the aggregate are significant. Net multiple on realized investments is not presented as it is unable to be calculated at the individual investment level and across funds. No investor has received the returns listed here because these returns are across multiple funds. Net returns reflect those of fee-paying investors and exclude those amounts invested by co-investors and Great Point related investors.