The firm reported an increase of nearly $100 million over its prior fund.
Heritage Group, a healthcare-focused private equity firm, announced the closing of a $300 million oversubscribed third capital fund Thursday morning.
The Nashville-based firm reported an increase of nearly $100 million over its prior fund.
Related: Private Equity Continues to Buy More Physician Practices
"We are very pleased with the market’s response to our offering, especially during such a challenging economic environment," Paul Wallace, partner at Heritage, said in a statement. "We are grateful for the ongoing support of our longtime investors, and we’re excited to welcome several new LPs. We’re fortunate to have a great team and a unique model, which combine to create value for all of our stakeholders."
Heritage is backed by several "large provider systems, payers and healthcare service providers," according to a company press release, and has invested in MDLIVE and Adobe Healthcare among other "leading healthcare services" companies.
"Heritage's strategic engagement is outstanding and allows us to work together as true partners," Scott Nordlund, chief strategy and growth officer at Banner Health, said in a statement. "We are able to lend our expertise and share the key pain points that we encounter as we strive to provide care in a value-based model, which requires new ways of reaching and treating consumers and patients. Heritage has been instrumental in identifying innovative businesses that solve these concerns for our organization."
Related: JAMA: PE-bought Hospitals Experienced Net Income Increases, Quality Improvement
The announcement is the latest insight into the financial interest of private equity firms in the healthcare industry.
In late September, a study published in the Annals of Internal Medicine found that on average, private equity-owned hospitals are more likely to be in low-income, rural areas.
These hospitals also had fewer full-time equivalent employees per occupied bed compared to non-acquired hospitals.
Related: Private Equity-owned Hospitals More Likely to be in Low-income, Rural Areas
Jack O'Brien is the Content Team Lead and Finance Editor at HealthLeaders, an HCPro brand.