PE Firm Revival Healthcare Capital Closes $500m Fund for Strategic Growth Investments

Private equity firm Revival Healthcare Capital today announced the closing of RVLHC II with total capital commitments of $500m. The fund will pursue strategic growth opportunities in which Revival will invest into a high potential target company where a corporate strategic partner will have a structural option or right to acquire the company in the future.

This strategy leverages Revival’s capacity as operators and investors to build collaborative partnerships that increase corporate partners’ probability of return on future growth investments and provide accelerated paths for target companies to advance innovative medical device technologies into global markets.

“Consolidation has made it increasingly difficult for medtech leaders to move the needle on growth,” said Revival Chairman and Managing Director Rick Anderson. “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?”

The fund will pursue investments that offer a solution for global strategic partners beyond the established pathways, while optimising what might otherwise be tradeoffs with respect to control, focus, earnings impact, and timing.

“The usual dynamic between strategic acquirers and target companies is a dance until closing time,” said Lauren Forshey, Revival President and Managing Director. “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.”

As the cost of bringing truly innovative medical devices to global markets continues to increase, the fund fills a capital need within the medtech ecosystem and offers another way for Revival to partner with strategic acquirers and target companies alike to support their growth strategies.

Revival has made its first investment commitment from the new fund of $75m and is actively engaging with global healthcare leaders to identify opportunities where strategic growth investments can deliver significant value. “This strategy leverages our world-class team of operators and investors to the fullest extent in building these collaborative partnerships to align resources behind a clearly defined and fully funded objective and maximise the probability of success for all parties,” said Anderson. “We are proud to offer this new way to partner with Revival to promote medical device innovation.”

Through its other custom investment partnerships, Revival pursues a broad range of opportunities beyond strategic growth investments where it can provide enabling equity capital, leadership, and expertise.

Source: Business Wire