Avista Healthcare Partners Successfully Closes Continuation Fund to Strengthen Medical Manufacturing
Avista Healthcare Partners Closes Continuation Fund for GCM
Avista Healthcare Partners, a prominent private equity firm that specializes in healthcare investments, has made headlines with the closure of its latest initiative, the Avista Healthcare Partners CV II, L.P. This single-asset continuation fund is dedicated to supporting GCM, an established player in the outsourcing of precision components for burgeoning medical technology markets. The announcement was made on June 24, 2025, signaling a new phase of growth and investment for GCM.
The funding comes on the heels of Avista's partnership with GCM, which has flourished since its acquisition in 2019. Under Avista's stewardship, GCM has significantly expanded its capabilities and customer base, effectively doubling its revenue through strategic investments in technology and human resources. Rob Girardi, a Partner at Avista Healthcare Partners, expressed satisfaction with this development: "We are pleased to provide our existing investors with the option for liquidity or continuing to participate in the value creation strategy we are successfully executing at GCM." This indicates Avista's dual commitment to both its investors and the sustained growth of GCM.
The newly established continuation fund is anchored by investments from Goldman Sachs Alternatives, which serves as the lead investor, complemented by financial backing from BlackRock Secondaries Liquidity Solutions. This robust financial structure will enable GCM to pursue further acquisition opportunities and make strategic investments crucial for its future. With a substantial pool of unfunded commitments now available, GCM is well-positioned to capitalize on burgeoning opportunities in high-growth areas, particularly in robotic surgery and other innovative medical technologies. Seamus Meagher, CEO of GCM, voiced excitement about the new funding and continued partnership with Avista, underscoring the pivotal role this investment will play in enhancing the company's offerings and manufacturing capabilities.
The backdrop of this funding move is a rapidly evolving healthcare landscape that demands advanced medical technologies and precision components. According to Brian Musto, Managing Director at Goldman Sachs Alternatives, "We are excited about the future prospects of GCM and the opportunity to partner with Avista in a transaction that provides existing investors a liquidity option while providing GCM additional duration and capital to take advantage of the compelling opportunity in the robotic surgical and other high-growth medical technology end markets." This reflects a keen awareness of the market’s potential and GCM’s readiness to meet these demands head-on.
This transaction's financial advisory was managed by Piper Sandler, while legal counsel for Avista was provided by Ropes & Gray LLP. These collaborations underline the meticulous approach Avista and GCM are taking to ensure that their strategic vision is realized through expert guidance.
About Avista Healthcare Partners
Founded in 2005 and based in New York, Avista Healthcare Partners has a robust healthcare investment portfolio exceeding $9 billion across 50 growth-focused healthcare companies globally. Avista focuses on partnering with businesses exhibiting strong management teams and promising growth trajectories, primarily targeting healthcare products and technology sectors. Their investment strategy is supported by seasoned Strategic Executives, providing deep insights that shape the sustainable growth of their portfolio companies.
About GCM
With its headquarters located in Union City, California, and additional facilities in cities like Chicago, Atlanta, and Wilmington, NC, GCM stands out as a supplier of manufacturing services tailored for the medical technologies sector. GCM specializes in precision machining and fabrication, offering clients extensive support services that include new product introductions, supply chain management, and value engineering.
Conclusion
Overall, the recent closure of Avista's continuation fund is exciting news for GCM and signifies a strong investment strategy focused on the future of medical technology. By harnessing substantial financial backing and expertise, they are set to enhance their positioning in the market, benefiting customers and stakeholders alike.