The private equity (PE) deals that have attracted the most attention in the device industry have been the major transactions that have occurred primarily in orthopedics—deals like the acquisitions of Biomet Inc., Encore Medical Corp., and Tornier NV. [See Deal][See Deal][See Deal]There are also signs of increased interest on the part of PE investors in later-stage device start-ups; one recent example is Evalve Inc.’s recently closed $60 million Series D round. [See Deal] Also see "Evalve, Mitralign Deals: Heart Valves Draw New Device Investors" - In Vivo, 1 December, 2007. While many PE investors appear to be focusing on the high and low ends of the device investment spectrum, Chicago-based Water Street Healthcare Partners is a firm carving its niche out of middle-market opportunities.
A new name to many, Water Street has more experience than one might assume for a firm founded in 2005....