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Cressey & Company raises new USD995m private equity fund

Cressey & Company, a healthcare-focused private investment firm, has closed Cressey & Company Fund VI (Fund VI) at USD995 million and a related co-investment vehicle on USD105 million, bringing total new capital commitments to USD1.1 billion.

The new funds will continue Cressey & Company’s focus on investing in and building leading healthcare services and information technology businesses in the North American healthcare industry. 
“We thank our investors for the trust they have placed in us and we are excited to capitalise on the attractive investment and value-creation opportunities we see in the services and information technology sectors of the healthcare market,” says Peter Ehrich, Partner at Cressey & Company. “My partners and I are proud of the leadership position we have established for our firm and for the value we have delivered to our investors over the years.”  
Fund VI launched in March 2018 with a target of USD750 million and was almost immediately oversubscribed. Fund VI had a single close on 8 June 2018, at its hard cap, raising a total of USD995 million. The firm also offered and closed a co-investment vehicle totalling USD105 million. Cressey & Company’s previous fund, Cressey & Company Fund V, closed in December 2014 on USD615 million in capital commitments. Including Cressey & Company’s Funds IV and V, the firm currently manages more than USD2.0 billion in committed capital.
Similar to prior funds, Fund VI will implement Cressey & Company’s “Target, Partner and Build” strategy that focuses on providing capital and support to exceptional executives in high-potential sectors of the healthcare industry.  As part of this strategy, which Cressey & Company and its predecessor firms have executed for over 35 years, Fund VI will focus on investing in leading platform businesses and accelerating growth both organically and through acquisitions. It generally seeks investments in companies with enterprise values at the time of investment of between USD50 million and USD500 million.
Kirkland & Ellis LLP served as legal counsel in the formation of Fund VI. No placement agent was used.

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