AFR: Quadrant Growth Fund dealmaker invests in fast-growing medtech

This aritcle is from the Australian Financial Review. Click here for the original article.

Quadrant Private Equity’s Johnny Zhang has signed his first deal for his new employer.

Street Talk can reveal Zhang – who was lured across from Navis Capital Partners to the Sydney buyout firm by its chairman, Chris Hadley, in March last year – has agreed terms to invest in Evolution Surgical, a designer and manufacturer of spinal implants.

Quadrant is investing in the business through its $530 million Growth Fund 2 and will partner with Evolution chief executive Jack Lancaster and management. Evolution’s portfolio of products includes everything from spinal implants to biologics for patients with spinal tumours, deformity, trauma, or degenerative disc disease.

It is one of few such companies of scale in Australia – and right in Zhang’s wheelhouse. He spent more than a decade at Navis, an active player in Australian growth-style deals, and was instrumental in its 2018 investment into medical devices supplier Device Technologies.

At Evolution, Zhang plans to put Quadrant’s capital behind an accelerated expansion strategy that will look “to serve more surgeons in delivering great patient outcomes”.

“We’ll also continue to invest in innovative product development, with the aim of furthering Evolution Surgical’s position as a differentiated, local champion,” Zhang told Street Talk on Monday.

Quadrant has form in partnering, alongside founders and shareholders in the healthcare sector. Past investments include Icon Cancer Care, Qscan, Estia Health and Virtus Health, while the current portfolio houses Partnered Health, Southern Star Research, and Cancer Care Australia.

“We are excited about the expertise and resources the [Quadrant] team will bring to accelerate our growth and the ways we can help patients,” Evolution’s Lancaster said.

Quadrant was advised by Herbert Smith Freehills, Boston Consulting Group, KPMG, and Greenmount. Frank Law + Advisory, KTM Capital, and PKF tended to Evolution. Evolution Surgical will be the seventh investment in Quadrant Growth Fund 2.