HedgeCo.Net — Consonance Capital Partners, a New York-based private equity firm focused on U.S. healthcare, has closed Consonance Private Equity III with $1.35 billion of commitments. The final close came at the fund’s hard cap after just under four months in market, in what the firm described as a heavily oversubscribed process.
Consistent with its predecessor funds, Fund III will invest in U.S. healthcare companies in the lower and middle market. The firm emphasizes businesses that drive efficiency, cost containment and high-quality patient care, and it participates in growth equity, leveraged buyouts, carve-outs, recapitalizations and special situations.
The fund drew strong support from Consonance’s existing limited partners and added a select group of new investors. The investor base includes endowments and foundations, pension plans and financial institutions. Monument Group served as global placement agent, and Latham & Watkins acted as legal counsel.
In a statement, the firm’s managing partners thanked limited partners and portfolio company management teams, saying the pace of the raise reflected investor confidence in the team, strategy and results. They said the team remains focused on partnering with management teams building businesses that add sustainable value to the healthcare system.
A sub-four-month raise at the hard cap stands out in a fundraising market where many managers are spending far longer on the road. It suggests that limited partners remain willing to concentrate commitments with specialist managers that have a defined sector focus and a track record of returning capital, even as overall capital formation stays selective.