Archimed closes MED II on EUR 3.5bn

Rachel Lewis
05 June 2023

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Specialist healthcare sponsor Archimed has held a final close for its second mid-cap fund on EUR 3.5bn, well above the fund's EUR 2bn target in a difficult fundraising environment.

The French GP set MED II's initial target at EUR 2bn, after launching fundraising in January 2022, but raised this limit twice to accommodate investors and "cope with rich deal flow", it said in a statement.

Main commitments to the fund amount to EUR 3bn, with the remainder committed to a side vehicle for co-investments.

The fund is EUR 2bn larger than its predecessor, MED I, which comprised EUR 1bn for the main fund and EUR 500m for a side vehicle.

The sponsor has seen five high multiple exits in the last 18 months, with all recording returns of 3x-6x, it said - although it has failed to make some anticipated exits, with UK-based occupational health group Vita Health stalled and Deallus missing in action following reporting from Mergermarket on both processes in 2022.

Investors
MED II saw a re-up of almost 100% and also attracted new investors globally among institutional investors and family offices, Archimed said. Around 40% of its investors are from Europe, 30% from North America and 30% from other regions, especially Asia.

Investments
MED II will target 14 investments versus the seven that MED I invested in, with a focus on mid-cap healthcare buyouts.

When the fund launched, Archimed founding partner Denis Ribon tod Unquote that it would stick to its portfolio mix of around 20-30% for biopharma, 20-30% for medtech, 15-20% for consumer health and the same again for life sciences tools, plus 10-15% for diagnostics and healthcare IT.

The fund has already deployed almost EUR 1bn of its capital, via the USD 1.2bn take private of Nasdaq-listed medical devices company Natus in 2Q23, as well as the buyout of German plasmids developer Plasmid Factory.

People
Archimed - Denis Ribon (chairman, founding partner).