The private equity firm behind the purchase of Ethicon Endo-Surgery’s breast care unit from Johnson & Johnson is on its way to raising a $3 billion fund.
GTCR Gold Rauner LLC is raising its tenth fund, according to peHUB. The Chicago firm raised $2.75 billion for its ninth fund in 2006 — before the bottom fell out of financial markets.
Chairman Bruce Rauner’s transition to an advisory role (from sourcing deals) becomes official with the new fund, peHUB reported.
GTCR’s latest fund is not doing well. GTCR Fund IX had an internal rate of return of -16 percent, as of Dec. 31, according to data from the Washington State Investment Board, peHUB said. But Fund VII posted a return of 25.3 percent, while Fund VIII stood at 28.7 percent, the Washington State Board said.
Founded in 1980, GTCR says it pioneered the “leader strategy,” that is, finding and partnering with leaders as the first step to building market-leading companies through acquisitions and organic growth.
In late 2008, the Chicago firm partnered with veteran medical device executive Tom Daulton to set up Devicor Medical Products Group LLC in Pleasant Prairie, Wis., to buy “established interventional medical device businesses that make and sell products to clinicians in hospitals, surgery centers or ambulatory clinics.”
And in early July, Devicor Medical made its first acquisition — the breast care division from Johnson & Johnson’s Ethicon Endo-Surgery unit, for undisclosed terms. The Wisconsin holding company is moving to Sharonville, Ohio, where it has moved the breast care division and its 300 employees, which it renamed Mammotome, a division of Devicor Medical Products.
Devicor Medical said in a regulatory filing last week that it raised $151.5 million. Daulton declined to specify his intentions for that investment. But he told the Cincinnati Enquirer that he planned to invest nearly $300 million in Mammotome over the next few years.