Thurston Group Achieves Successful Close of Oversubscribed Fund III at $211 Million

Thurston Group Closes Fund III at $211 Million

On July 16, 2025, the Chicago-based Thurston Group made headlines by announcing the successful closure of its third investment vehicle, Thurston Fund III. This fund, which focuses on healthcare investments, reached an oversubscribed amount, closing at a hard cap of $211 million in committed capital. This milestone represents the firm's largest fundraising effort to date, showcasing a remarkable growth of over 60% in commitments from previous investment rounds, particularly when compared to Fund II, which wrapped up in 2022.

The success of Fund III illustrates Thurston Group's strong position in the lower middle-market healthcare sector. By leveraging a proven strategy for growth and long-term value creation, the firm is set to pursue control investments within promising healthcare segments. The emphasis on collaborating closely with founder-owners of businesses adds an element of strategic partnership to their investment approach.

Dan Davis, the Managing Partner at Thurston Group, expressed gratitude for the confidence shown by both existing and new investors. He highlighted the creation of new strategic partnerships sourced from a diverse array of high-quality family offices, fund-of-funds, and affluent individuals. “The overwhelming demand for Fund III speaks to the confidence our investors have in our disciplined strategy and the positive outcomes we've achieved with prior funds,” Davis stated. This reinforces Thurston Group's reputation as a reliable partner for founders aiming to scale their businesses in the healthcare market.

Since its inception in 1986, Thurston has championed partnerships with entrepreneurial healthcare professionals. The firm believes in building sustainable legacy enterprises through a collaborative and value-adding approach. Notably, they have managed to return over $4 billion of invested capital across various economic challenges and industry cycles, establishing a trusted track record in the investment world.

Chairman and Founder Patrick J. Haynes III share his insights, “Fund III signifies a pivotal chapter in our evolution as a firm. Our team remains dedicated to forging robust partnerships with top-tier healthcare operators, and we are eager to channel this capital into ventures where we can offer meaningful operational enhancement and strategic backing.”

The firm retained Nixon Peabody LLP as legal counsel for the fund, while Praxess Securities, LLC served as the placement agent. The thorough yet dynamic approach to capital allocation is aligned with Thurston Group’s vision for nurturing transformative healthcare businesses.

As the private equity landscape continues to evolve, Thurston Group's strategic focus on healthcare presents infinite opportunities not just within the rising healthcare sectors but also across the wider investment community. The closure of Fund III solidifies their commitment to fostering excellence in healthcare investments, and it sets the stage for implementing innovative strategies that benefit both the firm and its partners. Investors can look forward to seeing how this fund develops its investments and contributes positively to the healthcare industry in the times ahead.