Healthcare investment firm Patient Square Capital closed its debut fund – Patient Square Equity Partners – with $3.9 billion in capital, surpassing its $3bn target.

The fund is both the largest first-time private equity fund ever raised and the largest fund ever raised by a dedicated healthcare-focused private equity, growth equity or venture capital firm, according to the firm.

Launched by Jim Momtazee, who founded and led the healthcare group for private equity giant KKR, Patient Square has deployed approximately $3 billion in capital since June of 2021, including significant co-investment commitments. The Fund’s portfolio companies include Access Telecare, Apollo Therapeutics, Eargo, Enavate Sciences, Hanger Inc., Kriya Therapeutics, Radius Health, Resolve Biosciences, and Summit BHC.

Healthcare-focused private equity deals had an exceptional 2022, which was likely the second-highest year on record, according to a recent report from consulting firm Bain & Co. The report shows that transactions in the healthcare sector are expected to close between $90 billion and $100 billion, trailing only the $151 billion from 2021.

Including co-investments, the Menlo Park, CA-based firm manages approximately $5.9 billion in assets.

PJT Park Hill served as the exclusive placement agent, subject to certain exclusions; Kirkland & Ellis served as legal counsel.