Blood, sweat and private equity for health care

While some are predicting scores of venture funds will run out of cash any day now, health-care funds keep filling up and cropping up.

Late-stage investment firm ABS Capital Partners said it has closed its $420 million fund. ABS invests in health care as well as media, software, business services and communications (its known mostly recent for the Rosetta Stone initial public offering).

ABS invests in companies throughout the country, and includes Cincinnati-based Radiant Research among the 20 health-care companies in its portfolio.

“While the economy is uncertain, we do see many CEOs playing offense in this environment and taking the opportunity to increase market share, make investments in their business or acquire other companies,” John Stobo, managing general partner of ABS Capital, stated in a press release. “We are pleased to have fresh capital to deploy in this environment.”

Plus, Venture Capital Dispatch reports on the formation of the uniquely named Blood Sweat & Capital LLC, which will invest between $500,000 to $2 million into up to three early-stage health-care services company every year. It wants to make its investments self-sustaining within six to 12 months after the initial investment.

The core of Blood, Sweat & Capital is made up of former executives from Leprechaun LLC, which they sold two years ago, and the former chief executive of Veridign Health Solutions.

It will make its first investment in the coming weeks.

“The timing just couldn’t be better; the industry is just brimming with innovation,” BSC Partner Daniel C. Lyons told Venture Capital Dispatch. “We have the resources. What we need are great ideas.”

[Photo courtesy of Flickr user SGSCleveland]