Frist Cressey Ventures announced it has closed an oversubscribed $425 million Fund IV, bringing total assets under management to nearly $1 billion as the healthcare venture capital firm marks its ten-year anniversary. The new fund reflects strong demand from strategic partners and investors and will expand the firm’s platform and founder-support capabilities through its healthcare network, hands-on leadership support, and healthcare policy expertise.
Fund IV will continue the firm’s focus on early-stage healthcare companies transforming care delivery with technology and tech-enabled services, including AI-native business models. Over the past decade, the firm has completed 44 total investments and 14 successful exits, investing across value-based delivery and transformational AI technologies. Fund I and Fund II rank in the top 5% of all venture capital funds for their respective vintages, positioning the firm among market leaders across key performance benchmarks.
The firm’s strategic limited partners include major healthcare organizations such as The Cigna Group Ventures, MedStar Health, and OhioHealth. These partners collectively provide healthcare to more than 50% of the U.S. population. According to the firm, 25% of its portfolio companies include at least one investor from among its strategic partners, underscoring alignment between capital providers and operating healthcare systems.
Portfolio founders highlighted the firm’s long-term partnership approach. Robin Shah, chief executive officer and co-founder of Thyme Care, said the firm supported the company before its category was clearly defined and remained committed as it scaled in specialty care management. Justin Norden, chief executive officer and co-founder of Qualified Health, emphasized the firm’s understanding of both the urgency and complexity of deploying governed AI across health systems.
In parallel with the fund close, the firm announced the fifth class of the FCV Collective, a curated group of 16 healthcare executives focused on systems-level change. The Collective convenes virtually and in person throughout the year to discuss industry priorities and includes engagement in Washington, D.C., where members meet with policymakers and administration officials to better understand healthcare policy priorities.
Founded by former U.S. Senate Majority Leader Bill Frist, MD and Bryan Cressey, Frist Cressey Ventures manages $846 million in assets under management and invests in early-stage companies building technology or tech-enabled services aimed at improving quality of care, system integration, patient outcomes, affordability, and access. With Fund IV, the firm aims to further strengthen its role as a partner to companies seeking to improve care delivery at scale.
KEY QUOTES:
“This milestone reflects the clarity of purpose, conviction, and deep commitment of our team, investors, and portfolio companies, all united by a shared mission to advance innovation in healthcare that improves lives and keeps patients at the center of everything we do. As we enter this next chapter, we’re excited to build strong, transformative, and enduring partnerships – and to serve as a trusted partner to the leaders and companies shaping the future of patient-centered care.”
Sen. Bill Frist, MD, Co-Founder and Managing Partner, Frist Cressey Ventures
“Frist Cressey Ventures believed in Thyme Care’s model early, before the category was clearly defined, and has stayed committed as we have grown into a category-defining leader in specialty care management. The firm has been a close partner and mentor throughout that journey, and its perspective has shaped how we think about scaling patient-centered care to help more people with cancer in more meaningful ways.”
Robin Shah, Chief Executive Officer and Co-Founder, Thyme Care
“FCV brings a rare combination of healthcare experience and long-term strategic thinking. As we build the operating layer that enables health systems to deploy governed AI across the enterprise, their support has been grounded in a clear understanding of both the urgency and complexity of this moment in healthcare.”
Justin Norden, Chief Executive Officer and Co-Founder, Qualified Health
“Advancing a simpler, more connected health care experience requires a shared commitment to collaboration and continuous innovation across the industry. Our collaboration with Frist Cressey will help advance solutions that drive better health outcomes, affordability, and experiences for the people we serve.”
Craig Cimini, Head of The Cigna Group Ventures
“We have a greater opportunity than ever to use tech to address some of the most complex challenges in healthcare. Frist Cressey helps us identify real innovations, and advises on where we should be spending our time and capital.”
Bill Sheahan, Senior Vice President and Chief Innovation Officer of MedStar Health and Executive Director of the MedStar Institute for Innovation
“We are growing our partnership and engagement with Frist Cressey because of its proven combination of meaningful strategic value while generating top decile investment returns. The collaboration with Frist Cressey will help us see around corners and bring innovative opportunities to our organization.”
Jesse Longoria, Senior Vice President and Chief Strategy & Growth Officer of OhioHealth
