Transformation Capital Launches $500 Million Digital Health Fund to Support Entrepreneurs Transforming Healthcare

Rhea-AI Summary

Transformation Capital Partners has launched its oversubscribed growth equity fund, Transformation Capital Fund II, with $500 million in capital commitments. This fund targets investments in commercial-stage digital health companies aiming to improve healthcare efficiency and consumer access. The firm, managing over $800 million across its funds, leverages its deep industry expertise and extensive healthcare network to support digital health entrepreneurs. The pandemic has accelerated the adoption of digital health solutions across the sector, positioning Transformation Capital as a key partner for growth.

Positive

• Oversubscribed fund with $500 million in commitments.
• Focus on digital health companies addressing healthcare inefficiencies.
• Strong industry expertise with a team experienced in digital health.
• Positive market trends following increased adoption of digital health solutions.

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• None.

BOSTON, Jan. 7, 2021 /PRNewswire/ -- Transformation Capital Partners, L.P. ("Transformation Capital") today announced the launch of its oversubscribed growth equity fund, Transformation Capital Fund II, L.P. ("TCF II"), which has $500 million in limited partner capital commitments and is focused on investing in commercial-stage digital health companies that serve stakeholders across the healthcare system. 

TCF II will invest growth equity to support entrepreneurs building game-changing digital health and technology-enabled service businesses that are improving the healthcare system. Transformation Capital sees enormous opportunity to attack waste and drive efficiencies, leverage patient-specific information to deliver data-driven, tailored care with better outcomes, and give the consumer what they need to select and pay for healthcare more proactively.

"Digital health innovation was already growing at an unprecedented rate over the past five years, but the pandemic has reshaped the culture and the policy and has greatly accelerated user adoption of technology by all healthcare stakeholders. Our deep and focused investment experience and unparalleled network in healthcare means that we are in a great position to find the next transformational companies and help them grow," said Todd Cozzens, Managing Partner.

Dr. Jared Kesselheim, Managing Partner, said: "We have built a team of digital health experts – that's all we do. Our team has founded and built companies, been clinicians and invested in digital health for our entire careers. We strive to be the firm of choice for founders, CEOs and investors who seek to take their digital health companies to the next stage of growth and scale."

Transformation Capital manages over $800 million across the investment funds it advises and was founded on the premise that healthcare requires a highly-focused investment approach combining deep industry expertise and vast connections. The investment team, led by Todd Cozzens, Dr. Jared Kesselheim and Mike Dixon, has more than 50 years of combined experience in founding and operating digital health companies like Picis, practicing as frontline clinicians at Massachusetts General Hospital, and investing with Sequoia Capital and Bain Capital Ventures. Julie Murchinson, former CEO of Health Evolution, joined the firm recently as a Partner to help extend the firm's healthcare network and provide additional operational and go-to-market services for portfolio companies.

"Stakeholders in healthcare, whether they be biopharma companies, payers, providers, employers or consumers are adopting digital health solutions at a faster pace than ever," said Mike Dixon, Managing Partner. "There is so much disruption ahead. If you're a digital health entrepreneur or founder with strong commercial traction and need to scale, we are an ideal partner."

The team's collective healthcare experience includes Health Catalyst (NASDAQ: HCAT), MedExpress (acquired by United), Clover Health (NASDAQ listing pending), Liazon (acquired by Towers Watson), ZirMed (now Waystar), Ability Network (acquired by Inovalon), and Apixio (acquired by Centene).

Snowbridge Advisors LLC acted as exclusive financial advisor and Snowbridge Securities LLC acted as exclusive placement agent in the United States and Canada. ISPartners Investment Solutions AG acted as placement agent in Europe.

About Transformation Capital

Transformation Capital is dedicated exclusively to supporting entrepreneurs building transformational digital health and technology-enabled service businesses. The firm invests at the commercial stage in companies that serve stakeholders across the healthcare system and was founded on the premise that healthcare requires a highly focused investment approach combining deep industry expertise and connectivity. Transformation is an investor in companies such as Health Catalyst, LetsGetChecked, PatientPing, PatientPop, Plushcare, Olive and Vera Whole Health.

Press Contact
Jenny Edelston
120/80 MKTG
jenny.edelston@120over80mktg.com

View original content:http://www.prnewswire.com/news-releases/transformation-capital-launches-500-million-digital-health-fund-to-support-entrepreneurs-transforming-healthcare-301202883.html

SOURCE Transformation Capital

FAQ

What is Transformation Capital Fund II?

Transformation Capital Fund II is a growth equity fund launched by Transformation Capital Partners, with $500 million in capital focused on investing in commercial-stage digital health companies.

How much capital has Transformation Capital raised?

Transformation Capital has raised $500 million for its oversubscribed growth equity fund, Transformation Capital Fund II.

What is the investment focus of Transformation Capital Fund II?

The fund focuses on supporting entrepreneurs building digital health and technology-enabled service businesses.

What opportunities does Transformation Capital see in digital health?

Transformation Capital sees opportunities to enhance healthcare efficiency, personalize care, and improve consumer access to healthcare solutions.

Who are the key people behind Transformation Capital?

The firm is led by Todd Cozzens, Dr. Jared Kesselheim, and Mike Dixon, who collectively have over 50 years of experience in digital health.