Leerink Transformation Partners Raises $313M For Debut Healthcare IT Fund

Sep 29 2017 | 5:12pm ET

Leerink Transformation Partners has raised $313 million in capital commitments for itrs inaugural healthcare information technology and services fund, exceeding its initial target of $250 million. 

The new fund, named Leerink Transformation Fund I, was significantly oversubscribed, the company said in a statement. It is one of the largest funds ever raised solely dedicated to healthcare IT and services growth equity investing, and will focus on investing in disruptive and innovative revenue-stage healthcare information technology and services companies.

The firm’s managing partners, former Sequoia Capital executive Todd Cozzens and ex-Bain Capital Ventures head of healthcare investing Dr. Jared Kesselheim, were previously leading healthcare investing at Sequoia Capital and Bain Capital Ventures, respectively, the company added. 

“We built a fund entirely focused on healthcare IT and services because of two key transformative tailwinds: the rapid adoption of information technology and the $3 trillion reimbursement shift underway from fee-for-service medicine toward value-based care,” said Kesselheim in the statement. “These drivers have created an unprecedented opportunity for disruption in a massive market whose complexity is best addressed by a fund with 100% sector focus.”

Snowbridge Advisors LLC acted as exclusive financial advisor to the new fund and was its North American institutional placement agent, the statement said.

An affiliate of healthcare-focused investment bank Leerink Partners, Leerink Transformation Partners invests in privately held companies in the healthcare information technology and services sectors. The firm was founded in 2016 by Cozzens and Kesselheim and has more than $340M in AUM across two funds.

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