Hildred Capital Management Closes Hildred Equity Partners II Fund at $363 Million
Oversubscribed Debut Institutional Fund Reinforces Hildred’s Commitment to Healthcare Middle Market
Hildred Capital Management LLC (“Hildred”), a New York based private equity firm, today announced that it has closed its first institutional fund, Hildred Equity Partners II (the “Fund”) with total commitments of $362.5 million, exceeding its target. Hildred will continue to focus on generating strong financial returns for its partners by tapping into secular growth opportunities in attractive healthcare sectors such as consumer products, medical provider services, pharmaceuticals services, information technology, life science tools and diagnostics, as well as related businesses. With deep industry knowledge and relationships, Hildred will pursue both majority and influential minority investments in outstanding healthcare companies where the firm’s strategic, operational, and financial expertise can enhance performance and create enduring value.
The Fund received strong support from a diverse group of both new and existing Hildred investors globally, including public pension plans, insurance companies, financial institutions, private wealth and financial services platforms, family offices, and high-net-worth individual investors. The General Partners of Hildred and their affiliated entities will invest approximately $80 million of capital in the Fund alongside these investors.
The Fund’s leadership team includes Managing Partners David Solomon and Andrew Goldman who have been working together since 2014 and have completed many successful healthcare investments, including Crown Laboratories, Butterfly Network and Kareo. Prior to establishing Hildred, Mr. Solomon served as SVP of Corporate Development and Strategic Planning at Forest Laboratories, and Mr. Goldman was a General Partner of Priam Capital. Mr. Solomon and Mr. Goldman are joined by an investment and operating team with a broad and complementary range of healthcare experience, including partner Bill Meury, former Chief Commercial Officer of Allergan.
“We appreciate the enthusiastic reception we have received for Hildred’s first institutional fund, and we are thrilled about the range of opportunities we see in middle market healthcare and adjacent areas,” said David Solomon, Managing Partner. “This is an incredibly exciting time to be focused in healthcare, as the pandemic has exposed significant areas of unmet need and inefficiency in patient care, resulting in fundamental shifts in the healthcare landscape that are creating highly compelling investment opportunities. Our focus will continue to be on building exceptional companies that add value to the healthcare system by improving patient outcomes, expanding access to high quality care and reducing costs.”
“We are grateful to have the support of investors who share our vision and belief in the growth catalysts for investments in middle market healthcare,” said Andrew Goldman, Managing Partner. “We look forward to continuing to partner with best-in-class businesses and their management teams where we can leverage Hildred’s deep operational experience and highly collaborative, hands-on approach to accelerate the provision of high-quality healthcare to the patients globally. With seven investments already completed, a robust acquisition pipeline, and ample dry powder, Hildred is exceptionally well positioned to drive strong returns for our investors in the evolving healthcare space.”
“The incredibly strong show of support Hildred has received for its first institutional fund amid the ongoing challenges associated with the pandemic is a testament to the strength of its team,” said Bart Molloy, Partner, Monument Group. “With extensive industry relationships, a deep bench of seasoned healthcare and investment professionals and exceptionally strong operational capabilities, Hildred has a compelling investment strategy. Congratulations to the entire team on a successful capital raise!”
To date, Hildred has completed seven investments in the Fund, including DermCare Management, a dermatology practice management company; HealthCare.com, a leading data-driven healthcare insurtech platform; Project Natural, an integrated manufacturer of natural and homeopathic consumer health OTC products; binx, the creator of high-quality diagnostic testing aimed at driving better compliance and health outcomes; SportsMed, a provider of physical therapy and related therapeutic services; Tesseract, the originator of a non-invasive diagnostic device to detect health conditions through the eye; and Carlin Consumer Health, a platform to acquire leading over-the-counter healthcare brands. The Fund is approximately 61% committed.
Kirkland & Ellis LLP served as legal counsel to Hildred. Monument Group, Inc. acted as placement agent.
About Hildred Capital Management:
Hildred is a New York-based private equity investment firm that pursues growth equity investments in middle market healthcare companies with leading products, technologies, and services. Hildred invests in companies with revenues of up to $100 million and creates value from pursuing organic growth strategies, driving effective resource allocation, implementing operational improvements, generating business development, and supporting best-in-class management teams. Areas with attractive fundamentals where Hildred may invest include the following healthcare subsectors: healthcare services, consumer products, information technology, medical devices, life science tools and diagnostics, healthcare related development and manufacturing, and pharmaceuticals, as well as related businesses that impact these healthcare subsectors. For more information, please visit www.hildredcapital.com.
