Council Capital launches Fund III with $125MM target, exits Ingenious Med

Milt Capps Updated 12 April 2016


Council Capital launches Fund III with $125MM target, exits Ingenious Med | Dennis Bottorff, Katie Gambill, Ingenious Med, Grant Jackson, healthcare, private equity, BIP Capital, North Bridge Venture Partners, information technology, IT, software as a service, SaaS, investment, capital, venture capital, Council Capital,

Updated 12 April 2016: Council Capital announced today it recently closed Fund III at more than $150MM, surpassing its previously declared target of $125MM and hitting its hard cap. Council says it now has about $300MM AUM. SEC here.-Ed.

COUNCIL CAPITAL, Nashville's 14-year-old private-equity firm, reported launching a $125MM capital raise for its third fund, the same day it announced exiting its stake in Atlanta-based Ingenious Med.

Council Capital GP III Managing Partner Grant Jackson declined to comment on yesterday's SEC filing for the new fund.

The firm's prior Funds I and II were managed by firm co-founders Denny Bottorff and Katie Gambill, as previously reported. Council has previously said it has more than $200MM capital under management. Jackson joined Council in 2008.

Council's Ingenious exit followed the sale of majority interest in the healthcare information technology company to Waltham, Mass.-based North Bridge Venture Partners.

Atlanta Business Journal on Oct. 9 reported the overall Ingenious transaction to be valued at $110MM, with its revenue said to be running greater than $20MM, with about 150 employees.

The ABJ reported Ingenious had raised a total $6MM from BIP Capital and from Council, with BIP said to expect an 8X return from its stake. Council's return from its Ingenious exit has not been disclosed.

Jackson said Ingenious' experienced 4X revenue growth during Council's tenure. That growth, he said, was partly due to the involvement of some members of Council Capital's CEO Council, comprising 26 successful executives who are entrepreneurs and/or investors who often contribute directly to advancing portfolio companies. Ingenious signed major customers in 2014, Jackson noted.

In its Ingenious exit, Council Capital was represented by attorneys with DLA Piper. Investment bankers with Houlihan Loukey ran the Ingenious Med sale process, which attracted multiple interested parties; and, attorneys with Nelson Mullins represented Ingenious, said Jackson.

North Bridge's name has popped-up locally in at least two other occasions, as previously reported here. VNC