High Road Capital Partners Hits 49% IRR on Latest Sale
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High Road Capital Partners Hits 49% IRR on Latest Sale

High Road Capital Partners has sold its portfolio company Accentus, a provider of medical transcription services, to Nuance Communications.  The sale of Accentus generated a 3.1x gross cash-on-cash return and a 49% gross IRR for High Road.  Partners Jeff Goodrich and Bill Hobbs and Principal Ben Schnakenberg led High Road’s investment in Accentus.

“In the three and a half years High Road owned Accentus, revenues and EBITDA increased by 400%,” said Bob Fitzsimmons, High Road’s Managing Partner. “Our investment strategy is to buy niche leaders and work with management to build bigger, more efficient, and qualitatively better businesses.  In partnership with Accentus’s outstanding management team, we were able to execute our value creation plan by expanding service offerings, completing four add-on acquisitions to build a presence in the US acute and ambulatory markets, and broadening technological capabilities.”

Accentus is a provider of medical transcription, document imaging, and remote coding technology and services to hospitals and physician groups in Canada and the United States.  The company is based in Ottawa, Ontario (www.accentusinc.com).

“With High Road’s support, we achieved significant growth in our medical transcription business in Canada while expanding into the United States,” said Steve Rogers, CEO of Accentus.  “Additionally, we made significant investments in our proprietary workflow management platform and in developing medical document imaging and remote coding services. These investments enabled us to broaden and deepen our client relationships.”

The sale of Accentus marks the second exit for the firm’s debut fund, High Road Capital Partners Fund I, LP.  The firm’s first exit was the sale of Milwaukee Gear Company to Regal Beloit Corporation for $80 million.  The sale generated a 2.6x gross cash-on-cash return and a 31.6% gross IRR for High Road. Milwaukee Gear manufactures custom precision gears and drives used in a variety of industrial applications.

Harris Williams & Co. advised High Road Capital Partners on the sale of Accentus.

High Road Capital Partners invests in manufacturing, service, or value-added distribution businesses with revenues of $10 million to $100 million and EBITDA’s of $3 million to $10 million. High Road was formed in 2007 and currently manages over $150 million of committed capital. The firm is based in New York (www.highroadcap.com).

© 2012 PEPD • Private Equity’s Leading News Magazine • 12-5-12

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