Chicago-based healthcare private equity firm, Linden Capital Partners, has announced a significant milestone in its 20-year journey. The firm has secured a passive, minority investment from Blue Owl’s GP Strategic Capital platform and Lunate Capital through their joint venture. While the specific terms of the agreement remain undisclosed, this strategic partnership is poised to fuel Linden Capital Partners’ continued expansion and solidify its position as a leader in healthcare private equity.
Founded in 2004, Linden Capital Partners has become a prominent name in the US healthcare investment landscape. With approximately $8.0 billion in regulatory assets under management, the firm has cultivated a reputation for its partnership-driven approach with management teams and its rigorous Value Creation Program. Linden focuses on middle market platforms within key healthcare sub-sectors, including healthcare services, medical products, and specialty distribution, and has an impressive track record of over 350 transactions across more than 45 healthcare companies.
Strategic Investment to Propel Future Growth
This minority investment from Blue Owl and Lunate Capital is designed to bolster Linden Capital Partners’ growth trajectory. Blue Owl’s GP Strategic Capital platform, with $55.8 billion in assets under management and a history of over 85 equity and debt transactions since 2010, specializes in providing capital solutions to private capital managers. Their joint venture with Lunate Capital, an independent global alternative investment manager overseeing $105 billion in assets, further strengthens this partnership. The joint venture specifically targets GPs with sector expertise, a strong leadership team, and a stable platform poised for continued value creation.
This investment provides Linden Capital Partners with increased financial flexibility to pursue strategic initiatives and further expand its investment platform. Importantly, the announcement emphasizes that this passive minority investment will not alter the day-to-day management or investment strategies of Linden, ensuring continuity and focus on their established successful approach.
Leadership Perspectives on the Partnership
Tony Davis, Co-Founder and President of Linden Capital Partners, highlighted the firm’s consistent dedication to healthcare companies over the past two decades. He stated, “Our goal of generating exceptional value for business owners and investors continues as we leverage our team of operating partners, investment professionals, and industry network to drive growth across our portfolio.” Davis further emphasized the strategic significance of partnering with Blue Owl GP Strategic Capital and Lunate, recognizing them as “industry leaders in global private capital markets.” He views this collaboration as a crucial step in Linden’s platform development, particularly “at a time when we see enormous opportunity to deliver further long-term sustainable growth and value creation.”
Michael D. Rees, Co-President and Head of Blue Owl’s GP Strategic Capital platform, echoed this enthusiasm. “We are excited to partner with Linden, one of the leading specialist healthcare private equity platforms in the US,” Rees commented. He expressed confidence in Linden’s “strong investment track record, coupled with the firm’s differentiated partnership approach and strategic industry network,” underscoring their belief in Linden’s “continued growth and success.”
Advisors and Looking Ahead
Evercore served as financial advisor to Linden, and Kirkland & Ellis provided legal counsel. Blue Owl’s advisors included BofA Securities as financial advisor and Fried, Frank, Harris, Shriver & Jacobson LLP as legal counsel.
This strategic investment marks an exciting new chapter for Linden Capital Partners Chicago. By partnering with Blue Owl and Lunate Capital, Linden is well-positioned to continue its growth trajectory, further strengthen its leadership in healthcare private equity, and deliver sustained value for its investors and portfolio companies.
