Avista Healthcare Partners Launches Fund to Support GCM Growth

Avista Healthcare Partners Completes Fund for GCM's Growth

Goldman Sachs Alternatives takes the lead investment role, with support from BlackRock Secondaries & Liquidity Solutions. Avista Healthcare Partners has successfully closed Avista Healthcare Partners CV II, L.P., a continuation fund dedicated to supporting GCM, a prominent outsourced manufacturer of complex precision components for high-demand medical technology markets. This fund will channel substantial capital into GCM, which is essential for pursuing acquisitions and expanding strategic investments.

Since Avista's acquisition of GCM in 2019, the firm has significantly bolstered the company’s manufacturing and commercial capabilities. Major investments in cutting-edge technology, facility enhancements, and skilled workforce development have led to the doubling of GCM's revenue. This demonstrates the successful partnership between Avista and GCM's management team.

Rob Girardi, a Partner at Avista Healthcare Partners, expressed enthusiasm about providing investors with liquidity options while allowing continued participation in GCM's value creation journey. The goal remains clear—to propel GCM forward in its growth trajectory and solidify its market leadership for the benefit of customers and stakeholders alike.

Seamus Meagher, the CEO of GCM, shared his excitement about the prolonged partnership with Avista. He emphasized how fresh investments and the expertise of Avista will allow for faster product development and an expanded production capacity, paving the way for the next level of growth.

Brian Musto, Managing Director in Vintage Strategies at Goldman Sachs Alternatives, provided insight on the potential ahead for GCM, indicating that the additional liquidity and duration will enable the company to seize opportunities in the rapidly growing sectors of robotic surgery and other advanced medical technologies.

Piper Sandler acted as the exclusive financial advisor for this transaction, while Ropes & Gray LLP provided legal counsel to Avista, ensuring all proceedings aligned with the best practices within the industry.

About Avista Healthcare Partners
Founded in 2005, Avista Healthcare Partners has established itself as a leading private equity firm based in New York. With over $9 billion invested across 50 promising healthcare businesses worldwide, Avista emphasizes partnerships with firms demonstrating robust management teams, reliable cash flows, and promising growth avenues. The firm focuses on healthcare products and technology businesses across six sectors benefiting from strong market trends. This approach is bolstered by an experienced team of strategic executives who enhance every investment's potential through keen insights and a commitment to sustainable businesses.

About GCM
GCM, with its headquarters in Union City and additional facilities across multiple US cities, is a noteworthy provider of precision manufacturing services for leading medical technology OEMs. The company excels in delivering highly-engineered precision machining, fabrication, and integration services and adds value through new product introductions, effective supply chain management, and value engineering, making it a go-to supplier in its sector.

About Goldman Sachs
Goldman Sachs (NYSE: GS) emerges as a prominent player in global alternative investments with an impressive $500 billion in assets under management. With over 30 years of industry experience, Goldman Sachs specializes in a variety of alternative investment strategies, giving clients access to customized partnerships and open-architecture programs. Their commitment to delivering their clients long-term performance and shared success is evident through the broad range of services they provide to institutions and individuals alike, resulting in a reputation for excellence in investment management.

Frequently Asked Questions

What is Avista Healthcare Partners' role in GCM's growth?

Avista Healthcare Partners has supported GCM by providing essential investments, enhancing their manufacturing capabilities and ensuring continuous strategic growth since acquiring the company in 2019.

What does the new fund aim to achieve?

The continuation fund aims to support acquisition opportunities and strategic investments for GCM, catering to the growing demand in the healthcare technology market.

How has GCM performed financially since Avista's acquisition?

Since the acquisition in 2019, GCM has more than doubled its revenue, demonstrating successful operational improvements and market strategy.

Who are the key investors in this fund?

The fund is primarily anchored by commitments from Goldman Sachs Alternatives, with additional investments from BlackRock Secondaries & Liquidity Solutions.

What services does GCM provide?

GCM offers a range of complex manufacturing services in the medical technology sector, including precision machining, fabrication, and integration, along with value-added services like supply chain management.

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