H.I.G. Capital has completed the sale of its portfolio company MagnaCare Holdings to Goldman Sachs, Pamplona Capital Management, and members of the company’s management team.
MagnaCare is a provider of third party administrator (TPA) health plan services to companies in the New York and New Jersey region. The company maintains a provider network of approximately 95,000 contracted physicians, hospitals and other healthcare providers. MagnaCare provides services to approximately 850,000 members and manages approximately $1.5 billion of annual health care expenses. The company is based in New York (www.magnacare.com).
After acquiring MagnaCare in 2010, H.I.G. invested resources in the company to augment its infrastructure and expand its service offering into the workers compensation and commercial markets. These efforts resulted in significant revenue and EBITDA growth during H.I.G.’s ownership.
“H.I.G. has been an outstanding and committed partner to the MagnaCare management team. Together, we established a clear strategic vision and made significant investments to build out and strengthen our provider network, enhance our corporate infrastructure, and introduce a wide range of new products and services to develop a comprehensive solution for the self-insured market,” said Joseph Berardo Jr., CEO and President of MagnaCare.
H.I.G. Capital specializes in providing capital to small and medium-sized companies and invests in management-led buyouts and recapitalizations of manufacturing or service businesses. H.I.G. Capital has more than $13 billion of capital under management. The firm was founded in 1993 and is based in Miami with additional offices in Atlanta, Boston, Chicago, Dallas, New York, San Francisco, London, Hamburg, Madrid, Paris, and Rio de Janeiro (www.higcapital.com).
“We have been very fortunate to be able to partner with Joe Berardo and the executive team at MagnaCare. They have successfully executed on a number of strategic initiatives and significantly grown the business over the course of our ownership,” said Tenno Tsai, Managing Director of H.I.G. “MagnaCare has been a successful investment for management, H.I.G. and our investors.”
Goldman Sachs is an investment banking, securities and investment management firm. The firm is headquartered in New York (www.gs.com).
Pamplona Capital Management is an investment manager that provides an alternative investment platform across private equity, fund of hedge funds and single manager hedge fund investments. Pamplona manages over $6 billion in assets for a variety of clients including public pension funds, international wealth managers, multinational corporations, family offices and funds of hedge funds. Pamplona is currently managing its third private equity fund, Pamplona Capital Partners III, which was raised in 2011 and has committed capital of $2.7 billion. The firm was founded in 2005 and is based in London and New York (www.pamplonafunds.com).
© 2014 PEPD • Private Equity’s Leading News Magazine • 1-21-14
