Print
Email
Print Edition Stories
MHT's Julie Donnelly: Boston lines up tech events for fall calendar
UMass President Jack Wilson on Entrepreneurship
Investment bankers at Provident Healthcare Partners are launching a $25 million private investment partnership aimed at early-stage venture capital and middle market private equity investments in specific sectors of the healthcare industry, Provident managing director Bob Ciardi said.
The partnership, dubbed Provident Healthcare Ventures, intends to invest mostly in home care, specialty pharmaceuticals and health IT, Ciardi said, but will look at deals in other areas of healthcare too. Most investments will be $500,000 to $3 million, the new firm said in a press release expected today, but Provident will also do larger, later-stage growth equity investments.
The new private equity partnership is calling itself a principals fund, after the parallel entities maintained by some private equity firms to allow pro rata investment by partners. Its four fund managers invested the $25 million for the new fund without any outside fundraising.
At least one of the partners – Ciardi – is a partner at Provident Healthcare Partners. Founded in 1998, the Boston investment bank provides merger and acquisition advisory, strategic planning and capital formation services for middle market health care companies.
“We have been advising companies for the last dozen years or so in how to become more profitable,” Ciardi said. Now, the firm has decided to couple that service with investment dollars.
He added that he and his investment banking colleagues have in the past made such investments informally, but said he could not disclose those investments without first obtaining the permission of the recipient companies.
In exit outcomes for portfolio companies, Provident Healthcare Ventures will seek mostly M&A with strategic buyers, or recaps with private equity buyout firms, Ciardi said. “These companies we’re making the investments are on the smaller side,” he said. “We aren’t going to go from a small venture investment to an IPO but we could exit with a sale or a recap with a private equity firm.”
Comments
If you are commenting using a Facebook account, your profile information may be displayed with your comment depending on your privacy settings. By leaving the 'Post to Facebook' box selected, your comment will be published to your Facebook profile in addition to the space below.
RSS Feeds
