Strategic private equity firm Water Street Healthcare Partners is looking to spend its newly raised $750 million fund in healthcare and lifesciences, $50 million to $500 million at a time.
The Chicago-based PE outfit, which recently exceeded its $650 million fund raising goal by $100 million in just 2 months, has deep roots in the medical device industry, including in past partnerships with Medtronic (NYSE:MDT) and Johnson & Johnson (NYSE:JNJ).
"Water Street has completed more than 30 strategic acquisitions and mergers, the majority of which were privately negotiated, to build 16 market-leading healthcare companies in 6 years," according to a press release. "Water Street will continue to pursue proprietary investments in four segments of health care: medical and diagnostic products and devices, specialty distribution, outsourced health care services, and specialty pharmaceutical products and services."
In the past 3 months, Water Street acquired Breg Inc. from Orthofix (NSDQ:OFIX) for more than $157 million in cash, divested dental pharmaceutical company OraPharma (which it acquired from Johnson & Johnson in 2011) and sold outpatient rehab services provider Physiotherapy Associates (which it acquired in partnership with Stryker (NYSE:SYK) in 2007).
The new $750 million fund is Water Street’s 3rd. The company closed its inaugural fund of $370 million in 2006 and a second fund of $650 million in 2008, according to a press release.