Digital health investment activity: Transformation Capital and Datavant

Transformation Capital, a digital health venture and growth equity firm, has closed its fourth fund, Transformation Capital Fund IV, at an $850 million hard cap. The fundraise was oversubscribed, attracting both existing limited partners and new institutional investors.

In a separate development in the healthcare data sector, Datavant has agreed to a deal where funds managed by Neuberger Capital Solutions, Neuberger Private Markets, and KKR will acquire a significant minority stake in the company. New Mountain Capital, an investor since 2014, will maintain its controlling position. Datavant operates a large health data ecosystem that connects providers, payers, and life science companies, with data reaching approximately 90% of the U.S. population. The transaction is expected to close in the fourth quarter of 2026.