Key Takeaways
- • VeraNorth Capital Management, LLC of Houston launched the VeraNorth Healthcare Private Equity Fund, L.P., an evergreen, NAV-based liquidity fund pursuing a hybrid growth equity and control investing strategy in U.S. lower middle market healthcare services.
- • Coinciding with the launch, VeraNorth acquired RN Express Registry, LLC, a New York-based clinical staffing firm founded in 2009 that the firm describes as a top provider of nursing personnel in Manhattan.
- • The fund offers quarterly NAV-based redemptions, a one-year hard lock-up followed by a six-year soft lock-up, and a 20% annual redemption gate per Limited Partner.
- • Carry is 20% of net NAV appreciation, subject to each investor's high-water mark, with no preferred return or catch-up.
- • The strategy plans a roll-up of urgent care centers, skilled nursing facilities, pharmacies, and hospices, positioning the fund as an alternative to conventional 10-year PE structures.
Summary
Coinciding with the launch, VeraNorth acquired RN Express Registry, LLC ("RN Express"), a New York-based clinical staffing company founded in 2009. The release describes RN Express as a top provider of nursing personnel in Manhattan with recurring revenue and significant growth potential. The Fund will support RN Express's organic growth and pursue a roll-up strategy across urgent care centers, skilled nursing facilities, pharmacies, and hospices. Troy Reed, President and Chief Executive Officer of VeraNorth Capital, said RN Express is the ideal partner to anchor the firm's healthcare-focused strategy.
The Fund's structure departs from conventional private equity vehicles. It is open-ended with quarterly NAV-based redemptions, a one-year hard lock-up followed by a six-year soft lock-up, and a 20% annual redemption gate per Limited Partner. Performance-based carry is 20% of net NAV appreciation, subject to each investor's high-water mark, with no preferred return or catch-up. Reed said the evergreen structure is designed to deliver risk-adjusted returns and consistent liquidity for Limited Partners while enabling long-term partnerships and add-on acquisitions.
The release does not disclose the Fund's target size, the purchase price for RN Express, or specific performance figures. The announcement is a firm-issued press release, so the characterizations of the strategy and structure are the company's own.
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