Netherlands-based investment firm Gilde Healthcare this week shared news that it has raised €200m ($225m) for its third private equity fund.

The fund, Gilde Healthcare Services III, closed at its hard cap and will focus on healthcare providers, suppliers of medical products and services in the lower mid-market.

Jasper van Gorp, the firm’s managing partner, attributed the high level of interest in the fund to its "investment strategy and track record".

Pension fund PGGM/Pensioenfonds Zorg en Welzijn and financial service firm Rabo Corporate Investments were among the Dutch institutional investors which backed the fund. Various international fund-of-fund investors also contributed.

What’s the impact

The new private equity fund is focused on established and profitable businesses in Europe with recorded earnings before interest, taxes, depreciation, and amortisation (EBITDA) of between €2m and €15m ($2.2m - $16.9m).

It has a primary focus on companies headquartered in the Benelux (Belgium, the Netherlands and Luxemburg) or DACH (Germany, Switzerland and Austria) regions.

Examples of recent private equity investments include hospital software provider Performation, telecommunications provider Zetacom and drug discovery research organisation Mercachem-Syncom.

On the record

In a press release, Gilde Healthcare said the fund had taken a few months to reach its hardcap.

“We are pleased with the high level of interest for the new fund which is testament to our investment strategy and track record,” said Jasper van Gorp. “We see a strong deal flow of healthcare providers, suppliers of medical products and service providers in the Benelux and DACH regions.

“Via our local presence we are well-positioned to source proprietary healthcare transactions in the lower mid-market.”

What’s the context

To date, Gilde Healthcare has raised more than €1bn ($1.1bn) across its three dedicated healthcare investment funds.

The new fund will operate out of offices in Utrecht in the Netherlands and Frankfurt in Germany.

Meanwhile, the firm’s venture and growth fund focuses on fast-growing health tech and therapeutics companies based in Europe and North America.

Read the full press release here.