Private equity investment firm Accelmed Partners, led by its Israeli managing partner Uri Geiger, has announced that it has closed a $400 million fund for investing in US commercial stage, healthtech companies. The Accelmed Fund II, LP was oversubscribed, exceeding its $300 million target. The fund was backed by pension funds, insurers, family offices, and high net worth individuals, as well as from existing Accelmed limited partners and Geiger said that many Israelis have invested in the fund.

Accelmed started out as a venture capital fund with Israel’s Mori Arkin as its anchor investor. Over the years the firm has developed into a unique strategic investment fund developed by Geiger, which invests larger sums in more mature growth companies.

Accelmed Fund I, LP closed in 2016 with $130 million in capital commitments, built on prior work executed by the team on similar strategies as part of the Arkin family office. Fund I investments included Cogentix Medical, which was acquired by Laborie in 2018 for $240 million, Strata Skin Sciences (Nasdaq: SSKN), Keystone Dental Inc., and EndoGastric Solutions Inc., among other digital health companies.

The second fund invest in medical devices, diagnostics, digital health, and technology-enabled healthcare services with a focus on control-oriented opportunities in companies with revenue typically between $20 million and $70 million. Fund II also provides a certain allocation of non-control growth capital to companies within Accelmed’s domain expertise with revenues greater than $10 million over the past twelve months. The fund is designed to build upon Accelmed’s strong track record of capitalizing on innovative sector opportunities at a time when the demand for technology-enabled healthcare solutions has never been greater.

Geiger said, “We have built our business on the belief that increasing the conversion of healthcare and technology materially improves individuals’ lives, addresses society’s unmet healthcare needs, and ultimately drives down the cost of healthcare. The strong support Fund II received from a diverse group of institutional investors and prominent family offices is a testament to their confidence in our strategy and ability to identify companies at the nexus of healthcare and innovation and partner with them to drive significant value.”

He added, “Over the past decade, we have served as a trusted value-add partner to HealthTech companies and management teams who are looking to take their businesses to the next level but lack the resources and expertise to execute on these aspirations on their own. The result has been broader access to innovative HealthTech solutions and a portfolio of high-growth businesses that have proven resilient to the Covid pandemic. We look forward to continuing to meet the needs of lower middle market HealthTech companies with the ongoing deployment of Fund II.”

The closing of Fund II follows its first two investments, which included the acquisition of TearLab, a leading ocular surface diagnostics company for dry eye disease in July 2020, and leading a $67 million financing round to support the commercial expansion of NeuroPace, a developer of brain technology for individuals who suffer from neurological disorders.

Published by Globes, Israel business news – en.globes.co.il – on March 17, 2021

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