Frazier Healthcare Secures Minority Investment from Goldman Sachs’ Petershill
Frazier Healthcare Partners, a prominent healthcare-focused private capital firm based in Seattle, has announced a strategic minority investment from Petershill at Goldman Sachs Alternatives (“Petershill”). While the specific terms of the transaction remain undisclosed, this investment is expected to provide significant benefits to Frazier as it continues to expand its investment platform and strengthen its position within the healthcare sector.
A Legacy of Healthcare Investment Excellence
Founded in 1991, Frazier Healthcare Partners (“Frazier”) has established itself as a leading private equity firm specializing in healthcare investments. Over the past 34 years, the firm has invested in more than 200 healthcare companies, leveraging its deep industry expertise to build and support high-growth businesses.
Frazier’s latest flagship fund, Frazier Healthcare Growth Buyout Fund XI, L.P. (“FHGB XI”), closed recently with overwhelming investor demand. The fund reached its hard cap of $2.3 billion in limited partner commitments within just six months, demonstrating strong confidence in Frazier’s investment approach and track record.
The Role of Petershill at Goldman Sachs Alternatives
Petershill, a division within Goldman Sachs Alternatives, specializes in making passive minority investments in leading alternative asset managers. Their focus is on well-established firms with robust track records and substantial cash flow generation, enabling them to scale effectively across future fund offerings and new investment products. By partnering with firms like Frazier, Petershill aims to support long-term growth while maintaining the investment manager’s independence and operational control.
This partnership represents a significant milestone for Frazier, reinforcing its ability to expand its healthcare investment strategy. The capital infusion from Petershill will allow Frazier to increase its general partner investment in both existing and future funds, as well as provide the firm with greater balance sheet flexibility for strategic initiatives. Importantly, the transaction will not impact Frazier’s day-to-day management or investment philosophy.
Strengthening Frazier’s Investment Platform
The new minority investment from Petershill is expected to fuel the continued expansion of Frazier’s investment capabilities. The firm has built a reputation for identifying and nurturing innovative healthcare businesses, ranging from biopharmaceutical companies to medical device firms and healthcare services providers.
With this added financial flexibility, Frazier can further support its existing portfolio companies, pursue new investment opportunities, and continue its tradition of building market-leading healthcare businesses. By increasing its general partner commitment to its funds, the firm will be able to align itself even more closely with investors and portfolio companies.
Leadership Perspectives on the Partnership
Nader Naini, Co-Managing Partner at Frazier, emphasized the significance of this new partnership, stating:
“Over the past three decades, we have been dedicated to building market-leading healthcare companies and delivering exceptional value to business owners and investors. We are excited to partner with Petershill, a recognized leader in global private capital markets. Their investment opens new doors globally and represents a significant milestone in the evolution of our platform at a time of immense opportunity.”
This sentiment was echoed by Ali Raissi-Dehkordy, global co-Head of Petershill at Goldman Sachs Alternatives, who highlighted the firm’s confidence in its growth trajectory:
“We are thrilled to partner with Frazier, one of the leading dedicated healthcare private equity platforms in the world. it is a world-class institutional firm that possesses a remarkable depth of expertise, strong investment track record, differentiated value-creation capabilities, and a strategic industry network which gives us confidence in it’s continued growth and success.”
A Growing Market for Healthcare Investments
The healthcare industry continues to be a major focus for private equity investment, driven by demographic shifts, technological advancements, and increasing demand for innovative healthcare solutions. it’s strategic positioning within this market allows it to capitalize on emerging opportunities, whether through growth buyouts, venture investments, or strategic partnerships.
With an extensive track record of success, it has consistently demonstrated its ability to identify high-potential healthcare companies and provide them with the resources and expertise needed for sustained growth. The firm’s ability to attract strong investor interest, as evidenced by the rapid fundraising for FHGB XI, further validates its approach.
The Broader Implications of the Investment
The investment from Petershill marks a continuation of a broader trend in private equity, where established asset managers seek minority capital investments to enhance their operational flexibility and growth potential. By securing this partnership, Frazier joins a select group of alternative asset managers that have leveraged strategic capital investments to strengthen their market position and expand their investment capabilities.
For investors and stakeholders within the healthcare sector, this move signals Frazier’s commitment to long-term value creation and its ability to remain at the forefront of healthcare investment innovation. The additional resources from Petershill will enable Frazier to make larger commitments to its funds, providing more capital for healthcare entrepreneurs and business owners seeking growth funding.
Financial and Legal Advisors
To facilitate this transaction, Frazier engaged Houlihan Lokey as its financial advisor, while Kirkland & Ellis provided legal counsel. On the other side, Fried, Frank, Harris, Shriver & Jacobson LLP served as legal advisors to Petershill. The involvement of these reputable firms underscores the significance and strategic importance of the deal.
