Healthcare fund holds first close on EUR100m

29 January 2008

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Fund

Baigo Capital, the first fund focused exclusively on the European healthcare sector has been launched with initial funding of EUR100m. Baigo Capital is in the process of raising an additional EUR200m. The Frankfurt-based fund has a lifespan of 10 years, with a five-year investment period and a cap of EUR350m. Minimum commitment is EUR5m. Management fees are 2%, with a hurdle of 8% and a carry of 20%.

Investors

The initial funding was provided by a German family office and the alternative investment arm of Luxembourg-based private banking group Sal. Oppenheim. Each has invested EUR50m as cornerstone investors.

Investments

Baigo Capital is targeting European healthcare companies with enterprise values of between EUR40-200m. The fund's mandate covers buyouts, carve-outs, buy-and-build strategies, and the provision of development capital. The fund will typically invest between EUR10m and EUR40m equity per transaction, and seeks to acquire stakes between 25% and 100%. Geographically, the fund will invest across Europe with a focus on Denmark, France, Germany, Sweden and Switzerland.

Baigo Capital will seek to make two to three investments per year, typically leading transactions, but is open to co-investing with other private equity houses. Baigo Capital is currently looking at investments in the areas of medical IT, medical laboratories, specialty pharma and healthcare distribution.

People

The four founding partners are Marcus Bracklo and Frank Duffner, two experienced healthcare investment bankers; Dr Dariusch Mani, former senior executive of Schering AG; and Markus Solibieda, former director of 3i PLC.

Dr Andreas Rodin and Patricia Volhard of Pollath & Partner provided tax and legal advice.

Name

Baigo Capital

Target

EUR300m

Focus

European healthcare

Contact

Marcus Bracklo

Address

Bockenheimer Anlage 4

60322 Frankfurt/Main