Sheridan Capital Partners closed Sheridan Capital Partners Fund IV at its $1.1 billion hard cap and separately raised $245 million for its first dedicated healthcare IT fund.
The Chicago-based private equity firm said Fund IV was oversubscribed and allocated in less than 60 days from the launch of fundraising, attracting commitments from both new and existing institutional investors.
At $1.1 billion, Fund IV is nearly twice the size of Sheridan’s $575 million Fund III and represents a significant expansion of the firm’s capital base.
Sheridan’s flagship investment strategy focuses exclusively on healthcare businesses, including outsourced services, healthcare products and manufacturing, patient services, providers, and other businesses operating across the healthcare ecosystem.
The firm follows a thesis-driven investment approach and typically seeks opportunities where it can combine industry expertise with operational resources to help portfolio companies scale.
Recent Fund III investments include Carolina Components Group, Tres Health, and Currier Plastics.
Alongside the flagship fundraise, Sheridan closed Healthcare IT Fund I with $245 million in capital commitments.
The new strategy focuses on lower middle market healthcare information technology companies in North America and is designed to complement Sheridan’s broader healthcare investment platform.
The Healthcare IT Fund will target businesses operating in fragmented areas of the healthcare technology market that Sheridan believes can benefit from long-term secular trends such as increasing digitization, demand for greater healthcare efficiency, and the adoption of software across provider and administrative workflows.
Sheridan has already completed three platform investments through the Healthcare IT Fund: Cadara, ICANotes, and PTEverywhere.
The firm said the dedicated technology strategy expands its ability to invest at the intersection of healthcare and software while also potentially creating commercial and strategic opportunities across Sheridan’s existing portfolio.
Sheridan plans to continue using thematic sourcing to identify healthcare IT businesses operating in market segments with favorable growth characteristics and opportunities for consolidation.
The firm believes specialized private equity remains relatively underrepresented in healthcare technology, despite the sector’s growing importance in improving access, efficiency, and outcomes across the healthcare system.
Sheridan’s investment approach emphasizes partnerships with founders and management teams, along with operational support intended to help portfolio companies professionalize their infrastructure, expand their capabilities, and achieve sustained growth.
Support: Evercore Private Funds Group served as Sheridan’s exclusive fundraising advisor and placement agent for Fund IV. Harris Williams served as placement agent for the Healthcare IT Fund, while Kirkland & Ellis served as legal counsel to Sheridan Capital Partners.
KEY QUOTES:
“We are pleased to have had such a successful raise and are deeply grateful to our partners for their confidence in our strategy and vision. With healthcare growing in complexity, business owners and investors recognize the value of a financial partner with specialized expertise. Sheridan is well positioned to apply that expertise to identify great companies across a range of attractive healthcare subsectors and collaborate with our portfolio companies to help them institutionalize operationally and achieve sustained growth.”
Jonathan Lewis, Co-Founder and Partner at Sheridan Capital Partners
“We believe healthcare IT remains an underserved segment despite its critical role in improving access, efficiency, and outcomes across the healthcare ecosystem. With the global healthcare IT market positioned for significant long-term growth, this adjacent strategy broadens our ability to partner with high-quality companies and founders operating at the intersection of healthcare and technology while leveraging the existing network of Sheridan portfolio companies for potential synergies.”
Sean Dempsey, Co-Founder and Partner at Sheridan Capital Partners
