Swiss healthtech focused private equity firm, MTIP has announced the closing of its MTIP Fund II at $250 million (€221m) in capital commitments.

The oversubscribed fund, which closed above its target of $225 million (€199m), continues its predecessor fund’s strategy of investing in growing and innovative healthtech companies primarily across Europe. 

MTIP Fund II is a designated ‘dark green’ fund, under Article 9 of the EU’s Sustainable Finance Disclosure Regulation, meaning its objective is to target sustainable investments.

After a strong first closing in late March of this year, MTIP completed the final closing of its second fund with capital raised from new and existing investors, including multiple renowned institutional investors, pension funds, family offices, hospitals, and foundations. 

MTIP has already made five investments out of its second fund: Swiss lifestyle coaching app Oviva, Swedish clinical trial recruitment firm Trialbee, Telefonica spin-out Koa Health, Greek AI startup Intelligencia and Barcelona-based symptom checker app Mediktor. 

WHY IT MATTERS

MTIP Fund II provides growth capital to entrepreneurial and fast-growing digital health and digitally connected medical device companies. The firm says that its investment team closely observes relevant healthcare and societal trends to source the most significant players in various markets.

It seeks to capitalise on Europe’s rapidly expanding healthtech landscape, providing up to €25 million in funding to help promising scale-up companies become global leaders.

THE LARGER CONTEXT

The COVID-19 pandemic accelerated innovation in the healthcare sector and led to the adoption of new technologies. 

According to CB Insights’ State of Venture Q3’21 Report, investors have poured $97.1 billion (€85.9bn) into healthcare this year – more than any other industry. The sector has collected 22% of the total amount raised so far in 2021.

A report on the future of healthcare released in April by Dealroom, Inkef Capital and MTIP, found that the combined value of Europe-based healthtech companies had grown from $8 billion (€7.08bn) to $41 billion (€36.3bn) between 2016 and 2021. This growth was brought on by telemedicine, operation software and insurtechs.

The report also found venture capital investment activity has moved beyond telehealth, to remote monitoring, artificial intelligence (AI) products and digital therapeutics.

ON THE RECORD

Dr Christoph Kausch, managing partner at MTIP, said: “We are excited to announce the successful closing of our second fund and continue our mission to build the health tech leaders of tomorrow. The trust our investors have put in us is a great endorsement of our strategy that’s built on our singular focus and proven approach to value creation.”

Dr Andreas Schönenberger, CEO at Sanitas and investor in the MTIP Fund II, said: “MTIP has a unique expertise in health tech and fosters innovation in this under-served private equity sector. Our collaboration with MTIP gives us access to innovative health tech solutions that enable us to generate added value for our customers.”