Revival closes innovative $500m healthcare fund to forge partnerships with potential trade buyers

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Revival Healthcare, a private equity house specialising in the medical device and diagnostic sectors, has hit a $500m final close for a new fund giving trade buyers a pathway into buying into portfolio companies.

The firm said RVLHC II would look to buy into high-potential businesses through a structure which gives a corporate strategic partner the option or right to buy the company in the future.

Revival said the unique investment structure was particularly effective in the highly consolidated medical device market, where the cost of bringing innovative medical devices to global markets continues to increase.

The firm has already tapped RVLHC II for a $75m investment, it added.

Revival chairman and managing director Rick Anderson said, “Consolidation has made it increasingly difficult for medtech leaders to move the needle on growth.

“Our markets reward growth but not necessarily the investments required to deliver that growth longer term. This presents a capital allocation problem in terms of dollars and human capital – do you focus on the core business or the pursuit of growth?”

Lauren Forshey, Revival president and managing director, added, “The usual dynamic between strategic acquirers and target companies is a dance until closing time.

“By removing the guess work and gamesmanship that often defines the relationship and instead aligning goals at the outset, target companies benefit from increased focus, speed, and capital efficiency in driving towards milestones they know they will get rewarded for.”

Fellow healthcare-focused PE houses have seen success in fundraising this year. Heritage Group boosted its fundraising through the final close of its oversubscribed third investment vehicle on more than $300m. Venture firm Heal Capital also hit a €100m final close for its debut fundraise.

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