Goldman Sachs and BlackRock are leading a fresh continuation fund for medical technology supplier GCM, which is being spearheaded by Avista.
In a significant development, Avista Healthcare Partners has announced the successful closure of its new fund, Avista Healthcare Partners CV II LP. This single-asset continuation fund, backed by Goldman Sachs Alternatives and BlackRock Secondaries & Liquidity Solutions, focuses on Avista's medical manufacturing portfolio company, GCM.
GCM, a company that specializes in manufacturing low-to-medium volume, precision components and system assemblies for the medtech, aerospace, and industrial sectors, was acquired by Avista in 2019. Since then, Avista has partnered with GCM's management to significantly expand the company's manufacturing and commercial capabilities. This expansion has resulted in more than doubling GCM's revenue.
The new fund provides liquidity to existing investors while allowing Avista to continue supporting GCM's growth with additional capital. The capital raised not only supports GCM's continued growth but also includes commitments for future strategic acquisitions to further scale the business.
Rob Girardi, Partner at Avista, stated that the fund marks an exciting new chapter for GCM. Seamus Meagher, CEO of GCM, added that the new capital will enable GCM to accelerate product innovation and manufacturing scale.
The continuation fund structure indicates an increasing role of secondaries in private equity portfolio management. Firms are looking to extend ownership in outperforming assets through continuation funds, as seen in this case with Avista Healthcare Partners and GCM.
Ropes & Gray provided legal counsel for the Avista Healthcare Partners CV II fund, with Piper Sandler acting as the exclusive financial adviser on the transaction.
While there are no specific recent strategic acquisitions mentioned for GCM, the continuation fund's inclusion of capital for future acquisitions indicates a strategic plan to expand GCM's capabilities and market presence through targeted investments.
Under Avista's ownership, GCM has become a key supplier to OEMs in robotic surgery and other high-growth medtech segments. This latest development underscores Avista's commitment to supporting GCM's expansion and strategic positioning in high-growth markets.
- The new fund, Avista Healthcare Partners CV II LP, which was recently closed, provides Avista with additional capital to continue supporting GCM's growth.
- The capital raised in the new fund will enable GCM to accelerate product innovation and manufacturing scale, as stated by Seamus Meagher, CEO of GCM.
- The new fund also includes commitments for future strategic acquisitions to further scale the business, as Avista has planned.
- The continuation fund structure, adopted by Avista Healthcare Partners for its new fund, indicates an increasing role of secondaries in private equity portfolio management.
- Under Avista's ownership, GCM has become a key supplier to OEMs in robotic surgery and other high-growth medtech segments, underscoring Avista's commitment to supporting GCM's expansion and strategic positioning in high-growth markets.
