GHO holds €660m final close for maiden fund

Kenny Wastell
25 November 2016

Tweet
Facebook
LinkedIn
Google plus
Send to

Healthcare-focused private equity house GHO Capital has held a final close on тЌ660m for its maiden fund, GHO Capital Fund I, surpassing its тЌ500m target.

The GP has declined to comment on the fee structure associated with the vehicle, although a person close to the situation told unquote" it is broadly in line with industry standards.

Rede Partners acted as placement agent for the fund, which held a first close on €400m in June 2015.

London-headquartered GHO was founded in 2014 and currently has a team of 10. In February this year, the firm appointed Sterling Square Capital Partners' Ken Eichmann as principal in its London-based office.

Investors
The vehicle received commitments from pension funds, sovereign wealth funds asset managers, insurance companies, funds-of-funds, family offices and high-net-worth individuals. Around 40% of commitments came from North American LPs, with 30% coming from Europe and the remaining 30% from elsewhere, unquote" understands.

Investments
GHO targets assets across a wide variety of healthcare-related industries, including pharmaceuticals, ophthalmology, biosciences and IT. The vehicle will look to invest in companies with enterprise values of €100-400m and will look to write equity cheques of €25-125m, according to unquote" data.

To date, the firm has primarily made buyout investments and implemented buy-and-build growth strategies. Its maiden fund will look to make 9-12 investments in total, according to the source.

The GP will look to invest in European companies looking to expand internationally, as well as North American assets that are looking to expand into the European market, unquote" understands. Most recently, it acquired Canadian proteomics and immune monitoring company Caprion Biosciences, before supporting the subsequent bolt-on of Belgian business Immune Monitoring Laboratory.

GHO Capital Fund I has made four European buyout investments to date, starting with the €104m acquisition of DNA testing lab DNA Diagnostics Center in October 2015. Other acquisitions include the £165m acquisition of outsourced drug development company Quotient Clinical from Bridgepoint Development Capital in December 2015; the €26m acquisition and subsequent merger of Italian ophthalmic company Visufarma; and the commercial operation of France-based Nicox.

Its most recent deal saw it join Ardian to support the £200-250m MBO of British healthcare-focused communications and IT business Envision Pharma Group from the Halifax Group.

People
GHO Capital – Mark Braganza (executive partner); Dennis Gillings (co-founder, non-executive chairperson); Mireille Gillings (co-founder, non-executive vice-chairperson); Mike Mortimer, Alan MacKay, Andrea Ponti (founders, executive partners); Mike Turner (executive partner).