Gilde Healthcare Raises $282 Million Fund With Philips, J&J

Gilde Healthcare raised 250 million euros ($282 million) for its latest health investment fund, with an increasing focus on digital applications designed to improve treatment and cut costs.

The fund’s investors include Royal Philips NV, Johnson & Johnson, a Danish government-sponsored fund and the European Investment Fund, Gilde said Tuesday in a statement. The majority of its investments will be in Europe, while the rest will be in North America, said Pieter van der Meer, Gilde’s managing partner.

While roughly two-thirds of the money will go into companies developing therapies and medical technology, the rest will be invested in digital health, van der Meer said. That market, valued globally at about $55 billion in 2014, will grow more than 20 percent a year, according to research by KPMG.

“We view digital health as a very important tool to build relationships with patients beyond the treatment,” Van der Meer said in an interview. “We see that type of innovation coming from the IT space, but what they lack is the health-care experience, and that’s exactly where we come in.”

Drugmakers and medical-technology companies are looking to digital health as they seek to add value to their products with services and better patient relationships, van der Meer said.

“As far as we are aware, there is no investment group focusing on this convergence” toward digital health, he said.

Gilde is seeking to invest in businesses that are likely to be snapped up by larger companies within three or four years. In the last three years, Gilde has sold 14 portfolio companies, with buyers including AstraZeneca Plc, Medtronic Plc and Roche Holding AG. Five of the 14 had initial public offerings, van der Meer said. The firm is based in Utrecht, the Netherlands, and Cambridge, Massachusetts.

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