Ebb & Flow
It took less than a month for Frazier Healthcare Ventures to close its sixth fund at $600 million, bringing its funds under management to over $1.8 billion.
"We sent out the PPM (private placement memorandum) in the first week of October, and then it only took three-and-a-half to four weeks," general partner James Topper told Ebb & Flow. "The existing LPs are quite happy - the vast majority wanted to re-up or increase their allocation."
Frazier Healthcare VI brought in a couple of new LPs, "but it was really the existing interest that drove it," said Topper. He noted that this fund increased Frazier's international exposure slightly and that "in general everyone is seeing more international interest."
The firm will continue to invest in biopharmaceutical, medical device and healthcare services companies. Topper expects to maintain a distribution similar to the last two funds, with 45-50% going into biopharma and 20-25% into devices. The remainder will go toward what Frazier dubs growth equity companies - profitable companies that are mostly in healthcare services but may also be in biopharma or medical devices.
With the larger fund size, the firm expects to put more money to work in each investment and to keep the number of companies