Gilde Healthcare V close on $450m hard-cap

Launched in December 2019 with a target of $350m and an initial hard-cap of $400m, Gilde Healthcare managing partner Pieter van der Meer told Unquote the firm decided to extend the fund's hard-cap to $450m to accommodate interest from LPs.

Van der Meer said: "We probably would have taken the coronavirus situation into account had we not yet started fundraising, but we began the due diligence process and site visits in December 2019. Despite the circumstances, the process went extremely smoothly and even while the crisis was taking effect, we were able to maintain interest."

He continued: "We did have one small investor that became concerned about the level of exposure to funds and decided to scale back its commitment."

The fund's predecessor, Gilde Healthcare IV, closed on €250m in June 2016 and is likely to make one more investment before it is fully deployed. Van de Meer said the fund already has above-average returns from the exits of several businesses.

He said: "We have portfolio companies that are directly assisting with the coronavirus situation and are thus seeing positive demand from the crisis. Even when we can see an end point to the crisis, there is likely to be demand for more healthcare solutions from diagnostics to treatment."

Structured as a CV, the fund is domiciled in the Netherlands.

Legal advice was provided by a team from Jones Day led by partner Quirine Eenhorst.

Investors
Gilde Healthcare V saw banks, pension funds, fund-of-funds, sovereign wealth funds, endowments, family offices, entrepreneurs and Gilde partners invest. Van der Meer said the fund has a re-up rate of 90%.

LPs include existing Gilde investors Royal Philips, Rabo Corporate Investments, Haniel, KfW Capital, BNP Paribas Fortis Private Equity, Belgian Growth Fund, Danish Growth Fund and the European Investment Fund (EIF).

Said van der Meer: "We're fortunate to be adding a lot of major LPs who we have been talking to for some time but have previously not invested. Many of them have extensive due diligence processes, high demands and severe criteria, so we're pleased they've finally decided to join us."

Investments
The fund makes venture and growth capital investments in sectors such as digital healthcare, medical technology and therapeutics in Europe and North America, and will also have a focus on private healthcare companies enabling improved care at an affordable cost.

The typical equity cheque will be $10-40m. Van der Meer told Unquote the fund is likely to have 15 or 16 investments when fully deployed. "We may also add an extra portfolio company through the reinvestment of cash proceeds from exits. We like to recycle proceeds as a result of early exits.

People
Gilde Healthcare – Pieter van der Meer (managing partner).

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