Arboretum Ventures beats target for for sixth fund

The fund's investors include the State of Michigan Retirement Systems, which committed $35m, and the City of Ann Arbor Employees’ Retirement System, which put up $6m.

Arboretum Ventures, a Midwest healthcare investor, has closed its sixth fund at $268 million, beating its target by $18 million.

The firm, based in Ann Arbor, Michigan, began fundraising in July 2022 with a target of $250 million, according to an SEC filing. Arboretum previously closed on $252 million for Fund V in May 2019.

Jan Garfinkle, Arboretum Ventures

“We are grateful for the continued support of our investors, especially in such a challenging fundraising climate,” Garfinkle said in a statement. “Our network of health system partners and industry advisors will help shape our investment strategy by providing insights to key strategic healthcare priorities.”

Investors include major health systems, payors, pension funds, endowments and family offices, according to the firm, which now has $1 billion in total capital under management. While Aboretum did not disclose the names of LPs, Venture Capital Journal research shows that the State of Michigan Retirement Systems committed $35 million to Fund VI, the same amount it put into Fund V, and the City of Ann Arbor Employees’ Retirement System committed $6 million, or $2 million less than its Fund V commitment.

It isn’t clear if other Fund V investors re-upped for the new fund. Those LPs include fund of funds manager Renaissance Venture Capital, the Herbert H and Grace A Dow Foundation and the Leona M and Harry B Helmsley Charitible Trust.

VCJ was unable to obtain performance data for Aboretum’s previous funds.

Fund VI will be managed by a senior team including managing partners Jan Garfinkle, Dr. Tom Shehab, Partner Dan Kidle, COO Paul McCreadie and CFO Marcy Marshall.