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

Oct 24, 2014 at 03:15 pm by miltcapps


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 Ventures (fka BIP Capital, Panoramic Ventures) 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

Tags: Ascension Ascension Health BIP Capital BIP Ventures capital Cedars Sinai Health System Center for Medical Interoperability Jeffrey Balser Center for Medical Interoperability Change Healthcare Chris Van Gorder CHS Community Health Systems Council Capital Dean Harrison Dennis Bottorff Ed Cantwell EHR electronic health records EMR Founding Chairman Gary and Mary West Health Institute Grant Jackson HCA healthcare Hennepin Healthcare System Hospital Corporation of America information technology Ingenious Med investment IT Jeff Balser Johns Hopkins University School of Medicine Jon Pryor Joseph Smith Katie Gambill Life Science Tennessee Lifepoint Hospitals Michael M. E. Johns Michael Schatzlein Mike Schatzlein Milton Johnson Nashville Health Care Council Nashville Technology Council Nicholas Valeriani North Bridge Venture Partners Northwestern Memorial HealthCare Panoramic Capital Paul Rothman Perceptive Health private equity Robert Wood Johnson Health System Robert Wood Johnson University Hospital SaaS Scripps Health software as a service software development St. Thomas Health standards Stephen Jones Thomas Priselac Tod Fetherling Vanderbilt University School of Medicine William Carpenter III venture capital Wayne Smith West Institute
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