NASHVILLE, TN (August 2, 2013) - FCA Venture Partners (“FCA”), the venture capital manager of investment firm Clayton Associates, announced the closing of its fifth fund, FCA Venture Partners V, L.P. (“FCA V” or the “Fund”), which exceeded its target with total commitments of $53 million.
FCA V is led by partners Matthew King and John Burch, along with CFO and partner Nancy Allen, who have more than 70 years combined operational and investment experience.
“We are very pleased with the continued support from our existing investors, many of whom have recommitted following investments in previous funds, which, along with a large number of new investors to the Fund, has dramatically increased our investor base,” said John Burch, Partner of FCA Venture Partners. FCA V’s Limited Partners include regional banks, leading asset management firms, family offices, entrepreneurs, and high net worth individuals.
The Fund’s focus has narrowed based on the experience within the previous funds. FCA V’s criteria for investment includes: i) healthcare services and information technologies, ii) early to growth stage businesses led by strong management teams with sector specific expertise, iii) capital efficient, scalable, and disruptive business models, and iv) commitment sizes of $2 to $6 million, board representation, and targeted ownership of at least 20%.
FCA believes there is a gap in the capital market between angel and later stage investments. Nashville’s healthcare prominence and thriving entrepreneurial community provide plenty of opportunity for investment; however, few firms in the Southeast are investing in the $2 to $6 million range, giving the Fund increased investment opportunities as it fills the void in early to growth capital.
Unique to the Fund, FCA has expanded its advisory board with the addition of several Special Operating Partners. Each of these members has very specific healthcare expertise, including healthcare revenue cycle, supply chain management, hospital management, physician services, and information technology. “We are leveraging our network of investors, board members, and affiliates, along with our Special Operating Partners to add value and guidance to each of our investments,” said Matthew King, Managing Partner of FCA.
The Fund made its first portfolio company investment in Nashville based Entrada Health with a $3.6 million commitment. To date, FCA V has invested in eight portfolio companies and plans to make several additional investments over the next two years.
ABOUT FCA VENTURE PARTNERS
FCA Venture Partners, the venture capital manager of Clayton Associates, was founded in 1996 by R. Clayton McWhorter, founder of HealthTrust, Inc. and former chairman of Hospital Corporation of America (NYSE:HCA) to serve as a platform for investing in transformational healthcare and technology related strategies. FCA and its affiliates have invested $175 million in over 85 companies to date, resulting in more than $7 billion in annualized revenue.