BioPharma

PE firm 1315 Capital raises $200M fund to invest in health tech, life sciences

It plans to invest in 10 to 14 commercial-stage companies at $10 million to $20 million per business. Last year it co-founded surgical oncology startup Onkos Surgical.

adele olivaPhiladelphia private equity firm 1315 Capital has raised $200 million for its first fund targeting health tech, life sciences and healthcare services investments. Its investors include endowments, foundations, state and corporate pension funds, and family offices.

Adele Oliva and Michael Koby co-founded the firm. Prior to 1315 Capital, Oliva had worked for Quaker Partners and expanded its growth and expansion stage investing practice. Before Quaker, she was co-head of U.S. Healthcare at private equity firm Apax Partners. Koby was managing director at Palm Ventures, a private-equity focused family office and also worked for healthcare growth equity investment firm Galen Partners.

In response to emailed questions, Oliva said it plans to invest in 10 to 14 commercial-stage companies at $10 million to $20 million per business. Last year, it co-founded Onkos Surgical, a surgical oncology startup with Patrick Treacy and Antony Koblish. It also counts Encore Dermatology and JDS Therapeutics among its investments.

What specific health technology trends spark your interest? We believe there is a significant opportunity in the smaller end of healthcare growth equity where Michael Koby and I have spent the vast majority of our investing careers. Massive consolidation the last 10 years in healthcare, has resulted in hundreds and hundreds of smaller products, in larger strategics, not getting significant commercial attention. Some of these products could provide significant benefits to a niche market of providers and patients. In addition, opportunities in cost containment are also attractive and an area of focus.

Is this a good time to be a private equity investor in healthcare? Why? Absolutely, healthcare remains a massive opportunity for both innovation, particularly in niche markets, which may no longer be a focus of larger companies, the globalization and expansion of healthcare, and the need for better, more cost-effective solutions.

What’s your take on the Philadelphia investment ecosystem and what gap, if any, do you see yourselves filling in it?

There is no better region to set up a healthcare growth equity firm given the heavy concentration of medium and large size strategics across pharma, medtech and services, as well as the exceptional commercial executive talent.

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