HIG BioVentures II, a HIG Capital fund that will invest in a broad range of sectors and development stages with a focus on pharmaceuticals, medical devices and diagnostics, has successfully closed as of March 28.
The fund, which was over-subscribed with total aggregate commitments of $268 million—exceeding its $250 million target—was raised entirely from limited partners specific to HIG BioVentures II. Partners included a diverse group of top-tier global investors, such as public and private pension funds, foundations, funds of funds and large private family wealth managers. The fund will make venture capital investments in innovative, product development focused healthcare companies located throughout North America.
HIG believes the healthcare sector remains highly attractive as a non-discretionary expenditure resistant to economic downturns. Revenues for pharmaceutical, medical device and diagnostics companies will continue to increase, as they drive more efficient healthcare delivery to an aging population with a growing landscape of significant unmet medical needs.
"We are very pleased with this fund, which we believe is the appropriate size to execute our strategy," said Aaron Davidson, managing director of HIG BioVentures. "We are seeing more and higher quality deal flow in the healthcare sector today than at any time in our history. The most effective way to meet the demands of today's evolving and challenging healthcare market is through innovative products that provide significant patient benefit on a cost-effective basis."
HIG BioVentures II will follow the same proven strategy as its predecessor fund, investing in product development and commercial companies with capital efficient business models. "We are seeking companies with well-defined products and viable business models, including clinical/regulatory, reimbursement, and go-to-market strategies," said Bruce Robertson, managing director of HIG BioVentures.