We prefer opportunities where we can expect a holding period that is below five years, but in certain cases we are willing to support companies up to the most adequate exit.

The fund will typically invest USD 10-30m over the lifetime of an investment through multiple rounds. We always ensure that we have reserves if required, and we can provide guidance on securing additional financing, as well as bringing in other investors from our network. Beyond capital, we support companies in different ways such as providing strategic and operational expertise, sharing insights into the sector and financial markets, and leveraging our broader network, including for example KOLs.

Most of our investments have been in the US and Europe, but we don’t restrict ourselves by geography and will consider proposals that meet our investment criteria regardless of where the company is based.

We invest in transformative healthcare technologies that can significantly improve patient outcomes or streamline healthcare delivery. Specifically, we invest in medical devices, diagnostics and digital health. We invest in growth stage, commercially ready companies that are either already on the market or have a predictable path towards market entry. Where relevant, a regulatory approval should have been secured in one or more geographies.

Although we traditionally invest in later-stage companies, we are happy to review and track earlier stage opportunities to develop a relationship and invest when the time is right.

In 2016, we closed our first fund dedicated to medtech and digital health, Endeavour Medtech Growth (EMG) LP, with a total fund size of USD 280m. In 2021, we closed EMG II LP with a total committed capital of USD 375m. EMG II LP is focused on investments in medical devices, diagnostics tools and digital health.

We generally look to hold a stake of 10-25%. We usually take a seat on the board of directors to ensure we have a complete overview of the business and can bring value, for example, in providing access to our network or giving strategic guidance. We understand the importance of building an exceptional board that will drive a business to success.

We approach it from several angles. We apply valuation techniques specific to young companies such as the venture capital method, cash flow valuation or earnings valuation. We also compare the potential deal with other companies and their typical market valuation. Finally, we undertake a qualitative assessment of the operational elements of the company. This could include the experience of the management, the development stage of the organisation or the clinical impact or uniqueness of the product.

We focus on building fully-fledged standalone companies capable of reaching >USD 100m in annual revenues. However, as is common in healthcare, private specialised companies are often acquired by global strategics through a trade sale which provides an exit opportunity. A company may also be a good target for a public offering allowing us to exit or cross-over our investments into public markets. Three of our portfolio companies became publicly traded companies in 2021. Reviewing potential exit scenarios is a key part of our due diligence before investing in a company.