Healthcare services investor WindRose targets $1.8bn for Fund VII

WindRose Health Investors, spun out of MTS Health Partners in 2018, has returned to the market with a seventh healthcare buyout offering.

The New York manager is seeking $1.8 billion for WindRose Health Investors VII, documents recently published by Massachusetts Pension Reserves Investment Management Board show. WindRose declined to comment.

Fund VII is set to raise 27 percent more than its predecessor, closed in 2023 on more than $1.4 billion. WindRose Health Investors VI was generating a 1.27x net multiple and a 15.3 percent net IRR as of December 2024, according to Buyouts data.

Despite slow market conditions, fundraising by healthcare private equity firms appears to be experiencing a mini-surge, Buyouts reported last month, citing several above-target closings this year and last. Examples include Linden Capital Partners’ sixth flagship fund, wrapped up in April on $5.4 billion, ahead of its $4.5 billion target.

It could be fundraising is getting a lift from revived dealmaking in the healthcare industry. Global deal value totaled $62 billion at the end of June, Bain & Company’s Healthcare Private Equity 2025 Midyear Update reported, on track with 2024 levels, which were the second-highest on record.

Along with WindRose’s Fund VII, dedicated healthcare funds now in the market include Blackstone Life Sciences VI, Patient Square Equity Partners II, Revelstoke Capital Partners Fund IV and TPG Healthcare Partners III.

WindRose, formerly MTS Health Investors, was launched in 1999 by Curtis Lane as part of MTS, a healthcare-focused financial services firm. WindRose spun out almost two decades later, closing its first rebranded fund, WindRose Health Investors V, in 2019 at $705 million.

WindRose is today owned by managing partner Oliver Moses, its ADV filings said. Moses joined in 2006 from Merrill Lynch’s healthcare investment banking group, where he was a director. Other senior team members are partners Alex Buzik, CJ Burnes, David Pontius and Bren Hall.

The firm’s strategy is to make control investments in US mid-market companies operating in service sectors of the healthcare industry. Target establishments have profitable business models and deliver “discernible value to the healthcare system through cost reduction, better clinical outcomes and other efficiencies,” WindRose’s ADV filings said.

In an FEG Insight Bridge podcast last year, Moses noted “25 cents out of every dollar” of healthcare spending “is pure waste,” with the other 75 percent also reflecting inefficiencies. “This is a marketplace with just massive opportunities for improvement through better process and technology to unlock a lot of that value. And that’s where we want to invest.”

WindRose’s portfolio holds 20 active investments, according to its website. The latest additions, announced this year, are Civie, an AI-powered ecosystem of radiology solutions, and Soleo Health, a specialty pharmacy and infusion services provider acquired in partnership with Court Square Capital Partners.

And in May, WindRose announced the sale of Workplace Options, an employee wellbeing solutions provider, to Telus Health in a deal valued at about $425 million. WPO was originally backed in 2021 via a majority recapitalization.