Peloton Equity, a healthcare-focused private equity firm, has closed its second fund Peloton Equity II with $152.25 million in limited partner and general partner commitments.
Fund II will seek to continue Peloton’s strategy of investing growth capital in innovative healthcare companies and partnering with management teams to achieve accelerated growth and value creation. Peloton invests across a wide range of healthcare sectors with a focus on differentiated companies that it believes are positioned to benefit from secular industry tailwinds.
Three investments have been made out of the fund to date: ClearSky Health, a leading provider of inpatient rehabilitation, AeroSafe, a global is a provider of cold chain packaging and logistics solutions, and biopharmaceutical, a specialty pharmacy and medical device industries.
Based in Denver, CO, Friday Health Plans is a provider of consumer-oriented health plans to individuals and small groups in Colorado, Nevada, New Mexico and Texas.
With the close of Fund II, Peloton will have the capital available to make several new portfolio company investments and support follow on investments in its existing portfolio companies.
Peloton is also welcoming a group of five Operating Partners for Fund II. Tom Bailey, Kevin Hill, Ted Hull, Keith Longson and Albert Prast, who all bring experience and company-building know how that is complementary to Peloton’s investment team and specifically relevant to companies and sectors Fund II will target. Biographies of the firm’s Operating Partners and GP Advisory Board can be found at pelotonequity.com.
Commitments to Fund II came from a diverse set of investors, including healthcare organizations, financial institutions, fund of funds, family offices, and individuals. “We are excited to announce the final close on Fund II,” said Ted Lundberg, Co-Founder and Managing Partner of Peloton Equity. “We are grateful for the strong support we received from our existing investors and the new institutional limited partners that committed to Peloton’s growth capital investing strategy.” The investment professionals have also committed to invest a significant amount of personal capital alongside the fund.
Carlos Ferrer, Co-Founder and Partner at Peloton, added, “Our experience and deep network of healthcare industry relationships enable Peloton to identify the market trends and companies that we believe are sustainable and will drive the industry forward. We are gratified to see the team’s strategy resonate with investors.” The investment team at Peloton has been investing together for more than a decade and has over 70 years of combined experience investing in the healthcare industry. The Peloton team has been responsible for over 30 healthcare company investments and 25 realizations.
Peloton targets companies with between $20 million and $200 million of revenue at investment and seeks to be a significant investor in its portfolio companies. Peloton seeks companies with high growth potential, driven by a clear value proposition to the healthcare industry. Peloton targets revenue growth of between three and five times over the life of its investment.
Peloton Equity is a Connecticut-based private equity firm focusing exclusively on growth capital investments in the healthcare industry. Peloton was formed in 2014 as the successor firm to Ferrer Freeman & Company (“FFC”) and invests in companies with the management team, market opportunity and business model to grow revenues significantly. Peloton’s investment team has invested in over 30 unique healthcare companies and deployed over $770 million in capital. Recent investments include AeroCare Holdings, AeroSafe Global, Arcadia Solutions, ClearSky Health, Friday Health Plans, HPOne and IDX.