AVISTA HEALTHCARE PARTNERS CLOSES CONTINUATION FUND FOR GCM

Rhea-AI Summary

Avista Healthcare Partners has successfully closed a single-asset continuation fund for GCM, a manufacturer of complex precision components for medical technology markets. The fund, Avista Healthcare Partners CV II, L.P., is led by Goldman Sachs Alternatives with additional investments from BlackRock Secondaries & Liquidity Solutions.

Since Avista's acquisition in 2019, GCM has more than doubled its revenue through expansion of manufacturing and commercial capabilities. The continuation fund includes substantial unfunded capital commitments to support future acquisitions and strategic investments. The transaction provides existing investors with options for liquidity or continued participation in GCM's growth strategy.

Positive

• GCM has more than doubled revenue since 2019 acquisition
• Secured substantial new capital commitments for future acquisitions and investments
• Backing from major institutional investors Goldman Sachs and BlackRock
• Strong positioning in high-growth medical technology markets

Negative

• None.

Insights

Private Equity Analyst

Goldman Sachs leads investment in Avista's continuation fund for GCM, providing liquidity and growth capital in medical technology manufacturing.

Avista Healthcare Partners has successfully closed a single-asset continuation fund for GCM, a manufacturer of precision components for medical technology markets. This transaction represents a strategic development for Goldman Sachs, which served as the lead investor through its Alternatives division, alongside BlackRock Secondaries & Liquidity Solutions.

The continuation fund structure accomplishes multiple objectives: it provides existing investors with liquidity options, secures additional duration for the investment, and establishes substantial unfunded capital commitments to support GCM's acquisition strategy and growth initiatives. This transaction model has become increasingly popular in private equity as it allows sponsors to retain promising assets beyond traditional fund lifecycles.

GCM's performance metrics are compelling—the company has more than doubled revenue since Avista's initial acquisition in 2019. This growth trajectory in high-value medical technology manufacturing aligns with Goldman's increasing focus on healthcare investments with recurring revenue potential and exposure to growing subsectors like robotic surgery.

For Goldman Sachs shareholders, this investment reflects the firm's continued execution on its alternative investments strategy, which has been a focus area for growth. The transaction structure demonstrates Goldman's ability to deploy capital in sophisticated private market solutions while gaining exposure to the resilient healthcare manufacturing sector that benefits from long-term demographic tailwinds.

Goldman Sachs Alternatives served as lead investor; additional investments from BlackRock Secondaries & Liquidity Solutions

NEW YORK, June 24, 2025 /PRNewswire/ -- Avista Healthcare Partners ("Avista"), a leading private equity firm focused exclusively on healthcare, today announced the successful close of Avista Healthcare Partners CV II, L.P., a single-asset continuation fund for GCM, a leading outsourced manufacturer of complex precision components for high-growth medical technology end markets. The continuation fund, managed by Avista, is anchored by commitments from funds managed by Secondaries at Goldman Sachs Alternatives, with additional investments from funds managed by BlackRock Secondaries & Liquidity Solutions. The continuation fund includes substantial unfunded capital commitments to support acquisition opportunities and strategic investments for GCM.

Since acquiring GCM in 2019, Avista has partnered with management to expand the company's manufacturing and commercial capabilities through critical investments in technology, facilities and human capital while also growing the company's customer base across attractive medical technology end markets. Since Avista's acquisition, GCM has more than doubled its revenue.

"We are pleased to provide our existing investors with the option for liquidity or continuing to participate in the value creation strategy we are successfully executing at GCM," said Rob Girardi, Partner at Avista Healthcare Partners. "We look forward to supporting GCM's next phase of growth and expanding the company's leading market position for the benefit of customers and all stakeholders."

"We are thrilled to continue our partnership with Avista," said Seamus Meagher, CEO of GCM. "The new capital and continued expertise of the Avista team will help us more quickly enhance our product offerings, expand our manufacturing capabilities, and achieve our next stage of growth."

"We are excited about the future prospects of GCM and the opportunity to partner with Avista in a transaction that provides existing investors a liquidity option while providing GCM additional duration and capital to take advantage of the compelling opportunity in the robotic surgical and other high-growth medical technology end markets," said Brian Musto, Managing Director in Vintage Strategies at Goldman Sachs Alternatives.

Piper Sandler served as exclusive financial advisor for the transaction and Ropes & Gray LLP served as legal counsel to Avista.

About Avista Healthcare Partners
Founded in 2005, Avista Healthcare Partners is a leading New York-based private equity firm with over $9 billion invested in 50 growth-oriented healthcare businesses globally. Avista partners with businesses that feature strong management teams, stable cash flows and robust growth prospects – targeting healthcare product and technology businesses with clear scale potential across six sub-sectors experiencing strong tailwinds. The team is supported by a group of seasoned Strategic Executives enhancing the entire investment process through strategic insight, long-term value and sustainable businesses. For more information, visit www.avistahealthcare.com or follow Avista on LinkedIn.

About GCM
Headquartered in Union City, California, with additional US facilities in Chicago, Atlanta and Wilmington, NC, GCM is a preferred supplier of complex manufacturing services to leading OEMs in medical technology end markets. GCM offers highly-engineered precision machining, fabrication and integration services as core service solutions. The company also provides value-added services to its customers including new product introduction, supply chain management and value engineering. For more information, please visit www.gogcm.com.

About Secondaries at Goldman Sachs Alternatives
Goldman Sachs (NYSE: GS) is one of the leading investors in alternatives globally, with over $500 billion in assets and more than 30 years of experience. The business invests in the full spectrum of alternatives including private equity, growth equity, private credit, real estate, infrastructure, sustainability, and hedge funds. Clients access these solutions through direct strategies, customized partnerships, and open-architecture programs.

The business is driven by a focus on partnership and shared success with its clients, seeking to deliver long-term investment performance drawing on its global network and deep expertise across industries and markets.

The alternative investments platform is part of Goldman Sachs Asset Management, which delivers investment and advisory services across public and private markets for the world's leading institutions, financial advisors and individuals. Goldman Sachs has approximately $3.2 trillion in assets under supervision globally as of March 31, 2025.

Established in 1998, Secondaries at Goldman Sachs Asset Management has invested over $80 billion since inception and has been a pioneer in the industry. The business provides liquidity, capital and partnering solutions to private market investors and managers worldwide across private equity strategies.

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SOURCE Avista Healthcare Partners

FAQ

What is the purpose of Avista Healthcare Partners' continuation fund for GCM?

The continuation fund provides existing investors with liquidity options while securing additional capital and duration for GCM's growth, acquisitions, and strategic investments in medical technology markets.

Who are the main investors in the Avista Healthcare Partners CV II continuation fund?

The fund is anchored by Goldman Sachs Alternatives Secondaries with additional investments from BlackRock Secondaries & Liquidity Solutions.

How has GCM performed since Avista's acquisition in 2019?

GCM has more than doubled its revenue since Avista's acquisition in 2019, expanding its manufacturing and commercial capabilities through investments in technology, facilities, and human capital.

What markets does GCM serve and what is their growth potential?

GCM manufactures complex precision components for high-growth medical technology markets, with particular opportunities in robotic surgical and other advanced medical technology segments.