Nashville-based Heritage Group has closed a $300 million fund that will invest in high-growth health care and technology ventures.
This will be the private equity firm’s third fund. The first two, launched in 2011 and 2016, collectively invested $387 million in companies that solve inefficiencies in health care. Heritage Group has invested in nearly 30 companies — including Shearwater Health, MDLive and Spero Health — so far. A spokesperson for the firm declined to provide details on returns for the first two funds.
“We are very pleased with the market’s response to our offering, especially during such a challenging economic environment,” Paul Wallace, partner at Heritage, said in a press release. “We are grateful for the ongoing support of our longtime investors, and we’re excited to welcome several new LPs. We’re fortunate to have a great team and a unique model, which combine to create value for all of our stakeholders.”
The firm was founded by Rock Morphis and David McClellan, who have worked together for over 35 years, launching and building high-growth health care businesses.
Heritage was originally backed by five major hospital players, including local Community Health Systems, LifePoint Health and Vanguard Health Systems (now part of Tenet). Added to the list of strategic investors is Advent Health, Amedisys, BlueCross BlueShield of Tennessee, Cardinal Health, Health Care Services Corp. and Cerner, among others.
This article has been updated to reflect the amount Heritage invested from their first two funds.