Healthcare investment bank Ziegler is teaming up with investment firm Linkage Ventures to launch a $26 million fund to invest in companies that provide healthcare services, technology and other related products and services to aging and senior populations, expecting that the needs of an aging baby boomer generation will provide profit-making opportunities in the senior-care sector.
Known as the Ziegler Linkage Longevity Fund, it will target equity and equity-like investments
in companies that serve older populations. The fund will focus on companies that have established programs—in areas that include coordination of care
, chronic disease management
, reduction of hospitalizations and readmissions
, aging in place, disease prevention and wellness strategies, government-funded programs and public health-related matters—and that are in need of additional growth capital.
“The fund is founded on the belief that the increasing aging population of the United States presents an attractive investment opportunity, given the size, growth and complexity of this population's needs within a continually evolving healthcare system,” according to a release from the partners announcing the deal. The $26.62 million fund is also expected to provide a forum for collaboration amongst it partners.
The general partner is Ziegler Linkage Management, a 50/50 joint venture between Ziegler Longevity, an affiliate of The Ziegler Companies, and Linkage Ventures. Limited partners include approximately 70 not-for-profit senior living providers and other strategic investors.
“We are excited to provide our not-for-profit senior living clients with unique access to high profile, innovative companies whose research and development efforts will be impactful to the sector,” Dan Hermann, head of investment banking at Ziegler, said in the release. “The collaborative idea sharing between the limited partners and a number of leading senior living providers as well as other healthcare constituents will be beneficial to the entire community.”Follow Rachel Landen on Twitter: @MHrlanden