HLM closes second healthcare fund on $216m

The Boston-based firm has announced 18 new institutional investors, five years after closing a $90m predecessor fund.

HLM Venture Partners announced the closing on $216 million (€163 million) for its second private equity fund. The fund had a target of $200 million.

HLM Venture Partners II seeks to invest between $8 million and $12 million in early- to mid-stage healthcare information technology, healthcare services and medical technology companies.

According to a statement, the fund attracted 18 new institutional investors, along with all of the institutional investors in the firm’s previous fund, HLM Venture Partners. That first fund, which closed in 2002, is a $90 million partnership that has invested in 52 companies across the three principal sectors of the health care industry. The firm said it has realised proceeds from the exit of 31 of those investments.

“We believe that investing in companies that address major trends such as consumerism, pay-for-performance and the advances in life sciences and medical device technology will provide exciting opportunities over the life of the Fund,” said one of the firm’s three managing partners, Edward Cahill, in the statement.

HLM recently invested in BioProcessors, Phreesia, Pathway Medical and MedVentive, and exited investments in Animas, Confluent Surgical and CorSolutions.

Founded in 1983 from an investment partnership between Chubb, an insurance company, and UnitedHealth Group, a health services provider, the Boston-based firm is also led by Peter Grua and Russell Ray. Cahill, Grua and Ray had all worked in healthcare investment banking at Alex. Brown & Sons (now part of Deutsche Bank) in the 1980s and 1990s.