Hildred Capital Hits $800 Million in Final Fund Close Success

Hildred Capital Celebrates Successful Fund Closing

Hildred Capital Management, LLC, a prominent player in the healthcare private equity arena, recently made headlines with the announcement of the final closing of its third investment fund, known as Hildred Equity Partners III. This significant milestone comes as the fund not only achieved its target but soared past expectations, amassing over $800 million in capital commitments within a remarkably swift seven-month period.

A Robust Response from Investors

The enthusiastic response from a diverse array of investors has underpinned this notable achievement. From public pension plans and insurance firms to affluent family offices and high-net-worth individuals, Hildred has garnered support from seasoned investors new and old. It's worth noting that the total size of this fund significantly exceeds that of the previous fund, Hildred Equity Partners II, which closed in 2021 with $363 million. The current fund has more than doubled that amount, marking a substantial growth trajectory for Hildred.

Commitment from General Partners

Moreover, the General Partners at Hildred and their affiliated entities have demonstrated a strong commitment by investing over $60 million themselves alongside the fund’s limited partners. This level of involvement speaks volumes about their confidence in the fund's strategy and vision.

Looking Forward with Optimism

Andrew Goldman and David Solomon, Co-Founders and Managing Partners of Hildred, expressed heartfelt gratitude towards existing and new investors alike. Their message emphasizes an optimistic outlook: “We are grateful for our existing investors’ continued partnership and the enthusiastic support we have received from new limited partners around Fund III. There are a significant number of compelling investment opportunities throughout the healthcare ecosystem…” Their belief in leveraging strategic, operational, and financial expertise positions Hildred to make a remarkable impact in the healthcare field.

Focus Areas for Investment

Hildred Capital remains committed to pursuing substantial financial returns by aligning with secular growth trends across various segments of healthcare. The fund plans to target numerous subsectors such as commercial pharmaceutical products, medical devices, care delivery services, and healthcare IT, among others. Such a comprehensive approach ensures that Hildred will play a crucial role in enhancing patient outcomes and broadening access to quality care while simultaneously driving down costs.

Acknowledging Key Partnerships

In addition, the firm engaged Evercore Private Funds Group as the lead global placement agent for this fund, with Kirkland & Ellis serving as the legal advisors. Alexander Russ, heading North America at Evercore, underscored the tremendous support from the investors, highlighting Hildred's reputation as a go-to source for lower middle-market healthcare investments.

Investment Timeline

As Hildred Equity Partners III gears up to deploy capital, the firm is actively assessing new investment possibilities. It aims to commence its investments in the first quarter of 2025, indicating a proactive and strategic approach to the opportunities that lie ahead.

About Hildred Capital

Founded with the goal of generating impactful healthcare investments, Hildred Capital specializes in operationally intensive, control-oriented investments in the lower middle-market sector. The firm prides itself on partnering with forward-thinking management teams to cultivate high-quality businesses. With more than $2.65 billion in assets under management, Hildred boasts a wealth of experience and industry knowledge that it translates into success for its portfolio companies.

Frequently Asked Questions

1. What is Hildred Capital's main investment focus?

Hildred Capital primarily invests in lower middle-market healthcare companies, focusing on operationally intensive, control-oriented investments.

2. How much capital did Hildred Equity Partners III raise?

The fund successfully raised over $800 million, significantly exceeding its initial target of $600 million.

3. When will Hildred begin deploying capital from the new fund?

Hildred plans to start deploying capital from Hildred Equity Partners III in the first quarter of 2025.

4. Who are the key investors in Hildred Equity Partners III?

The fund received commitments from a diverse group of investors, including public pension plans, insurance companies, and high-net-worth individuals.

5. What areas will Hildred target for investments?

Hildred aims to invest across various healthcare subsectors, including pharmaceuticals, medical devices, and healthcare IT, focusing on enhancing patient outcomes and reducing costs.

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