Revelation Partners Closes $608 Million Fund, Surpassing $500 Million Target
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With $1.5 billion under management, Revelation Partners is a leading firm in the healthcare secondary market
SAUSALITO, Calif., October 25, 2023-- Revelation Partners today announced the closing of its $608 million Fund IV, far surpassing the healthcare investment firm's initial target of $500 million. Revelation Partners now manages $1.5 billion of committed capital as the firm provides liquidity and flexible capital solutions to investors, companies, limited partners and general partners across all healthcare sub-sectors.
The oversubscribed Revelation Healthcare Fund IV provides Revelation additional capital to address the billions of dollars of illiquid equity interests in attractive, growing private healthcare companies. Interest in the firm's strategy highlights the unique approach Revelation has pursued over the last ten years. It also underscores limited partners' interest in getting economic exposure to a diversified set of healthcare companies (medical devices, diagnostics, biotech, health-tech, and healthcare services) that are at a later stage and growing rapidly.
"The close of our latest $608 million fund surpassed our initial target and presents a tremendous opportunity to continue our momentum within the private secondary market. In today's dynamic healthcare sector, there are ample opportunities to continue our track record of providing liquidity to the illiquid market of private healthcare investments," said Scott Halsted, Founder and Managing Partner. "We continue to see record deal flow at Revelation Partners."
Revelation's activity mirrors its rapid growth as a specialized healthcare investment franchise. The firm has been growing at an annualized rate of over 40% for the last six years.
"Revelation Partners is unique. We offer liquidity to a wide swath of counterparties for their minority equity interests in private healthcare companies. When these counterparties (founders, venture capital funds, limited partners, and general partners) do not want to wait for an M&A or IPO event, they can turn to Revelation as a credible alternative," added Mike Boggs, Managing Partner. "Our flexible capital solutions are a source of cash for investors who may not otherwise receive liquidity for several years. In this environment, that is great news for private healthcare investors."
Counterparties' ability to wait for traditional liquidity events has been exacerbated by the lack of liquidity in the current market environment. According to NVCA data, over $200 billion has been invested in private healthcare companies over the last three years, but there has been little liquidity generated for those investments. Since the middle of 2021, there have been few successful healthcare IPOs and few private M&A transactions for cash. For Revelation, that has translated to an active investment pace.
In the last 18 months, Revelation has provided over $200 million of liquidity commitments to private investors. These groups are wide ranging. Many venture investors and private equity firms need cash to support their portfolio or to generate liquidity for their investors. Some investors have legal constraints in a fund that is over ten years old, and they are legally required to seek a liquidity option. In other cases, founders or employees of private companies seek cash for personal reasons. Revelation can provide cash to each of these counterparties in a challenging liquidity environment.
With its latest $608 million fund, Revelation Partners will continue to focus on the expansion of private secondaries and leverage its expertise in providing shareholder liquidity, GP solutions, and growth capital to offer customized solutions for private healthcare companies and their investors.
About Revelation Partners
Revelation Partners provides flexible capital solutions to the healthcare ecosystem. These customized solutions provide liquidity, align shareholders, and support the growth of privately held healthcare companies. The firm's long-term approach allows it to address the issues faced by a wide range of counterparties, including founders, company management teams, institutional investors (including general partners), and limited partners.
For more information, please visit: www.revelation-partners.com.