Main Street Capital has fully exited its investment in NCP Investment Holdings (National Cardiovascular Partners), a healthcare services company, with the closing of the sale of the company to Fresenius Medical Care.
National Cardiovascular Partners (NCP) is an operator of free-standing outpatient cardiac and vascular procedure labs. The centers are joint venture partnerships between NCP and a group of physicians and hospitals that perform diagnostic and therapeutic procedures at the site. The company is based in Houston (www.ncplp.com).
Main Street made its initial investment in NCP in 2004 to support growth initiatives, with Main Street’s investment consisting of a first lien, secured debt investment with an equity warrant participation. Main Street’s debt investment in NCP was fully repaid during the second quarter of 2012, and a majority of its equity interest in NCP was purchased by Bain Venture Partners in the fourth quarter of 2012.
With the close of the sale of NCP to Fresenius Medical Care (www.fmcna.com), Main Street realized a gain of approximately $8.6 million. On a cumulative basis since Main Street made its initial investment in NCP in 2004, Main Street realized an internal rate of return of 30.9% and received 4.7 times its money invested.
Main Street Capital provides long-term debt and equity capital to middle market and lower middle market companies in diverse industry sectors that generally have annual revenues ranging from $10 million to $150 million. Main Street provides “one stop” financing alternatives within its lower middle market portfolio. The firm is based in Houston, TX (www.mainstcapital.com).
2014 PEPD • Private Equity’s Leading News Magazine • 10-28-14