Valspring Capital, a healthcare-focused growth equity firm, announced the closing of its debut fund, Valspring Capital Fund I, above its target at $255 million. Launched in 2022 by a team spun off from Bain Capital Ventures to pursue healthcare investments with the firm’s support, the Valspring team will seek to invest primarily in growth-stage companies in the healthcare industry, focusing on the information technology, technology-enabled services, and services sectors within North America.
This fund also received strong institutional investor interest from a diverse LP base, including endowments and foundations, pensions, financial institutions, funds of funds, and private wealth firms.
Showcasing the firm’s strong pipeline and sourcing in a highly competitive and crowded growth equity ecosystem, the team completed two investments during the fundraiser in HealthJoy and Phoenix. And HealthJoy is a technology-first healthcare benefits navigation platform serving mid-sized employers.
Valspring tracked the care navigation space and HealthJoy for many years via its extensive, thesis-driven market landscaping work and has deep experience to help the company commercialize and scale. And Phoenix is a founder-owned pharmaceutical home delivery company servicing the Canadian market. The company also exhibits many characteristics that Valspring targets for its fund investments, including capital efficiency, strong unit economics, and outsized topline growth.
Monument Group acted as the exclusive placement agent, and Ropes & Gray LLP acted as general counsel.
KEY QUOTES:
“We are thrilled to announce the close of our debut fund and proud to close above target amid a challenging environment for growth equity. We see a great deal of opportunity in the healthcare sector, a continually growing and fragmented industry ripe for innovation. With our strong team, supplemented by a network of operating partners with significant industry and operating experience, we are confident we can excel in this competitive market and drive value for our portfolio companies and investors.”
– Yumin Choi, Managing Partner, Valspring Capital
“Monument Group was honored to partner with Valspring on their successful inaugural fundraise. Valspring’s focused strategy, deep sector expertise, demonstrated track record and combined history strongly resonated with investors, resulting in a highly successful fundraise.”
– Bart Molloy, Partner at Monument Group
