Innovation Institute in La Palma will raise $150 million to invest in early-stage healthcare companies. It bought TriStar Health Partners LLC in Nashville to be the fund investment manager.
Institute Chief Executive Joe Randolph said his group will provide seed money and that the fund aims to raise about $65 million toward the overall total by the end of the year.
Innovation Institute is a for-profit limited liability company owned by five nonprofit health systems that have each invested at least $10 million in the group, which operates three divisions:
A lab-incubator in Newport Beach that does research with physicians and clinicians
A stable of about a dozen companies it’s bought that deliver services to healthcare providers
A fund to invest in early-stage healthcare companies
The TriStar acquisition provides management for the third element.
TriStar principals have helped create and grow about two dozen healthcare companies over the past 15 years, starting with projects at Vanderbilt University and its medical center, both in Nashville.
