US-based venture capital firm Heritage Group closed its latest Healthcare Innovation Fund at $220m yesterday after securing contributions from limited partners including 15 regional healthcare systems.
The fund was oversubscribed by $20m, and is more than $50m larger than Heritage’s last Healthcare Innovation Fund.
LPs for the latest fund include care systems Adventist Health System, Amedisys, Cardinal Health, Cerner, Community Health Systems, Health Care Service Corporation, Horizon Healthcare Services, Intermountain Healthcare, LifePoint Health, Memorial Hermann Health System, Sutter Health, Tenet Health, Trinity Health and UnityPoint Health.
Heritage pursues an interactive investment model whereby its strategic LPs help it find, assess and grow portfolio companies while at the same time gaining access to useful new technologies.
The firm has invested a total of more than $1bn since it was founded in 1986. Its current portfolio companies include cloud-based healthcare technology producer Vivify Health, virtual health services provider MDLive and healthcare reimbursement data platform Aver.
Paul Wallace, managing director of Heritage Group, said: “We are delighted by the ongoing support of our existing investors, and we’re excited to have welcomed several new strategic investors to Heritage.
“In this era of unprecedented change in healthcare, we are proud to continue to provide our partners with significant financial returns, along with the opportunity to engage deeply in addressing critical problems in the healthcare industry.”