In September, ArchiMed announced the final closing of its fourth small-cap healthcare buyout fund, MED IV, exceeding its original target of €1.2 billion. ArchiMed is rethinking which deals and subsectors to pursue as it puts the new €1.5 billion fund to work in a healthcare market being transformed by artificial intelligence. To learn how the Lyon-based, healthcare-focused PE firm is investing the vehicle, PE Hub spoke to Denis Ribon, chairman and managing partner at ArchiMed.
Launched in late January, MED IV closed in less than six months and was 3x oversubscribed, according to Ribon. He said the firm's mature funds deliver above 3x net, and less mature funds will deliver at least 2.5x net, probably 3x for most. "We absolutely are convinced we'll remain top quartile across all trends," he said.
For ArchiMed, AI determines not just which deals to chase but which subsectors to target. Ribon said bioproduction has been strongly accelerated by AI, and that advanced medical device businesses are moving from connected to AI smart devices. This could mean AI applications that interpret data before it reaches a doctor, which is useful given the workforce shortage at hospital level. The firm has also backed providers using AI, including Title21 Health Solutions, which acquired c Results in June, and sold Ametris to Signant Health in May.
MED IV primarily aims to make majority control transactions alongside founders, families and management teams in prioritized sectors including animal and environmental health, biopharma products, consumer health, diagnostics, healthcare IT, life science tools and services, and medtech. At least 90 percent of investments will be split evenly between Europe and North America. Historically, 95 percent of ArchiMed's investments have been primary buyouts, and the MED program generally invests in 12-15 companies per vintage.
Source: PE Hub · Summarized by HeadlinesBriefing