Turenne Santé has held the first closing of its FPCI (Professional Private Equity Fund) Capital Santé 2, with commitments of EUR 100 million.
Building on the solid track record of Capital Santé 1 and its dedicated team of healthcare experts, the objective of Capital Santé 2 is to invest throughout the healthcare value chain to support the growth and buyout transactions of SMEs and mid-market companies in the sector: healthcare delivery operators, suppliers to the healthcare ecosystem and operators in the Quality of Life and Wellbeing segments.
The healthcare industry and related services are a value-creation sector composed of SMEs and mid-market companies enjoying high growth. In France, 11.5 per cent of GDP is currently being devoted to the healthcare sector, some 1.1 points higher than the EU15 average. The dynamism and evolving nature of this sector of the economy make it much more open to innovation, new models and the most efficient approaches, mainly developed by SMEs and mid-market companies. Such operators are required to develop product and technical innovations at an ever-faster pace and requiring significant investment, all in an increasingly complex regulatory environment posing ever more demanding pricing and technical issues. These companies must also be able to meet new challenges, notably relating to internationalisation and digitisation, which must not only be met, but also surpassed. There is therefore a major social and economic need to create larger and better-organised French SMEs and mid-market companies in the healthcare sector capable of becoming global market leaders.
Driven forward by this value-creation sector and the success of its first fund, Capital Santé 1, the team is meeting the needs of profitable SMEs and mid-market companies in the sector by creating a dedicated fund, Capital Santé 2. The first closing of the fund has already reached EUR100 million of its EUR140-150 million target, and will make between 10 and 15 investments.
With the renewed confidence of investors in the first fund, for the first closing Capital Santé 2 has been supported by institutional investors such as the European Investment Fund, Bpifrance, mutual insurance companies and mid-market companies and key players in the healthcare sector.
The investment strategy and performance objectives of Capital Santé 2 will aim to build on the solid track record of Capital Santé 1. Having collected EUR62 million since April 2014 and invested in 14 companies, this first fund conducted 13 build-up transactions and has already completed five exits, redistributing a significant proportion of the capital at an average multiple of two and an IRR of 20 per cent.
To support its developments, Turenne Santé has reinforced its team with the arrival of Raquel Pires as Investment Director. Raquel has 8 years’ experience in M&A advisory in the healthcare sector, as Deputy Director and Manager at KPMG Corporate Finance for 4 years, following a period spent at Bryan Garnier & Co. Previously Raquel worked for the Pharma/Healthcare teams of BNP Paribas Corporate Finance and in the private equity department of Alcimed, where she was responsible for strategic acquisition audits.
Benoît Pastour and Mounia Chaoui, Turenne Santé, say: “Healthcare is a dynamic and ever-changing sector in which it is vital to create larger and better organised operators. We would like to offer our subscribers our sincere thanks for the trust they place in us which, allied with the quality of our past investments, enables us to pursue our investment strategy and deploy our Capital Santé 2 fund throughout the healthcare value-creation chain, from prevention to prescription.”
