First closing at medtech investor SHS: over 90 million euros for Fund V
Tübingen - SHS Gesellschaft für Beteiligungsmanagement has received capital commitments of more than EUR 90 million for its now fifth fund at the so-called “first closing”. The Tübingen-based medical technology investor has thus reached almost two-thirds of its target of 150 million euros faster than expected.
The fifth generation of SHS funds also targets the life sciences and medical technology sectors and thus the globally growing healthcare market with innovative and strong companies, especially in Germany and Switzerland. 12–15 engagements are planned. With the “first closing”, fund companies complete an initial capital collection phase — usually when half of the total target volume has been reached. With the formal completion of this first phase, the capital collected can already be invested in companies. Investors can still participate in SHS V until the “final closing”. Around half of the investors in SHS V had already participated in the Tübingen-based company’s predecessor funds.
SHS attributes the strong demand from institutional investors and family offices to its positioning as a sector specialist. “We would like to thank the investors for their trust. For 25 years on the market, we have focused on investments in companies from the medical technology and diagnostics sectors. We have built up a great deal of industry experience and trust, and also have the necessary intuition for feasible innovations. Our portfolio companies can build on an established network of industry experts, health insurers and medical opinion leaders. In addition, we support the companies’ value development with internationalization know-how as well as expertise in reimbursement and regulatory issues and in initiating strategic partnerships,” says Hubertus Leonhardt, SHS partner and managing director responsible for fundraising.
Focus on expansion financing and corporate successions
Minimally invasive surgical procedures, robotics-supported forms of therapy and digital solutions for the healthcare sector are seen as particularly innovative and fast-growing fields in Tübingen. Industrial expertise, the availability of well-trained engineers, and above all the close links between the university and research landscape and industry have created a good climate in the industry in Germany and Switzerland.
“We already see a large number of fast-growing healthcare companies, both young and established, in which our fifth fund could invest. Tighter regulation and high pressure to innovate and internationalize are leading to increasing demand for capital in the sector. The increasing complexity of the healthcare market is driving concentration processes. In addition, some companies are struggling to ensure a successful handover to the next generation. As an experienced partner, we can provide companies with targeted and competent support here,” says Leonhardt.
According to SHS, the maximum investment amount of the fifth fund per investment is 30 million euros. Together with cooperation partners, equity transactions of up to EUR 60 million can be carried out. Majority and minority shareholdings are possible. The focus is on expansion and innovation financing, succession situations and shareholder changes. SHS is expanding its previous country focus on Germany, Austria and Switzerland to include Scandinavia and the Benelux countries. SHS had contributed capital, many years of expertise, market knowledge and its network to the Fonds IV investments — such as EIT, a 3D printing specialist for the orthopedics sector, the Austrian robotics company Tyromotion, which is active in the rehabilitation sector, and the Swiss manufacturer of cardiology products SIS Medical.
With investments from the SHS III fund, for example, the Bochum-based company phenox, which specializes in technologies for the treatment of neurovascular diseases, was successfully developed. SHS recently announced the sale of its SHS III investment AMW, a Warngau-based specialist in drug delivery systems, to an international strategist.
About SHS Gesellschaft für Beteiligungsmanagement mbH
Tübingen-based SHS Gesellschaft für Beteiligungsmanagement invests in medical technology and life science companies with a focus on expansion financing, shareholder changes and succession situations. In doing so, SHS enters into both minority and majority shareholdings. As an experienced industry investor, SHS, which was founded in 1993, supports the growth of its portfolio companies through a network of collaborations, for example in the introduction of new products, regulatory issues or entry into additional markets.
German and international investors in SHS funds include the European Investment Fund, professional pension funds, pension funds, funds of funds, family offices, entrepreneurs and the SHS management team. The equity investment of the AIFM-registered company is up to 30 million euros. Transactions in the mid double-digit million range can be implemented together with a network of co-investors. Managing partners at SHS are Reinhilde Spatscheck, Dr. Bernhard Schirmers, Hubertus Leonhardt and Uwe Steinbacher.