June 16, 2016
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Archives for June 16, 2016

1315 Capital Closes First Fund

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1315 nf11315 Capital, an investor in specialty pharmaceutical, medical technology, and healthcare services companies, has held a final closing of its inaugural fund with $200 million of capital commitments. Investors in the new fund include the usual tally of high net worth individuals, endowments, foundations, state and corporate pension funds, and family offices.

Adele oliva nf1“We are very pleased with the positive reception to 1315 Capital’s team and investment model,” said Adele Oliva, a co-founder and partner. “Consolidation within healthcare has provided opportunities for innovation, particularly in niche markets, and we are committed to working with exceptional management teams to fill needs in the healthcare market and build value for our investors.”

In addition to its corporate finance expertise, 1315 Capital uses a hands-on operating model. Three operating teams at the firm have experience with specialty pharmaceuticals, medical technologies and healthcare services (cost containment and digital health) companies. The operating teams are composed of two executives – who have worked together at multiple companies – that support the firm’s investment team and portfolio companies in order to create shareholder value.

Michael Koby nf1“Our unique operating partner model leverages not only the CEO, but also the Chairman, COO, and CFO relationships, allowing us to provide a more complete set of skills to help navigate diligence, drive decisions, and achieve premium exits,” said Michael Koby, a co-founder and partner.

1315 Capital invests from $10 million to $20 million of capital in healthcare companies that have the potential to scale to $100 million of revenue – creating a company that is attractive for acquisition or has the ability to access the public markets. 1315 Capital was founded by Ms. Oliva and Mr. Koby and is headquartered in Philadelphia (www.1315capital.com).

© 2016 Private Equity Professional • 6-16-16

North Castle Sells Doctor’s Best

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doctors best nf22North Castle Partners has sold Doctor’s Best, a distributor of branded nutritional supplements, to publicly traded Xiamen Kingdomway Group. North Castle acquired Doctor’s Best in January 2014.

Doctor’s Best is a marketer and distributor of branded nutritional supplements, with more than 300 products sold through the Internet and brick-and-mortar retail.  The company is led by CEO Gale Bensussen and is headquartered in Irvine, CA (www.drbvitamins.com).

chip baird nf1“Our investment in Doctor’s Best illustrates North Castle’s ability, as a focused fund, to leverage knowledge, network and expertise to provide a company with growth opportunities and set a path for ongoing success,” said Chip Baird, CEO and Founder of North Castle Partners.

North Castle makes control investments in consumer-driven product and service companies located in North America with enterprise values ranging from $50 million to $500 million.  Sectors of interest include beauty and personal care; consumer health; fitness, recreation and sports; home and leisure; and nutrition.  North Castle is headquartered in Greenwich, CT (www.northcastlepartners.com).

Alison Minter nf1“With nearly two decades of experience in the healthy, active and sustainable living market, our extensive network of relationships in this industry, coupled with our experience in and knowledge of the category, provided insights that we believe helped Doctor’s Best develop into a strategically important part of Kingdomway’s future,” said Alison Minter, Managing Director of North Castle Partners.

kingdomway nf1Xiamen Kingdomway Group is a nutrition company that sells its products through retail stores in Singapore, sales outlets throughout Southeast Asia, a joint venture in Japan and wholly owned subsidiaries in the United States, including Vit-Best Nutrition. The company was founded in 1997 and is traded on the Shanghai Stock Exchange (SHE: 002626). The group has 1,500 employees and is headquartered in Xiamen, China (www.kingdomway.com).

© 2016 Private Equity Professional • 6-16-16

Arlington Capital Adds-on to Ontario

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columbia nf5Ontario Systems, a portfolio company of Arlington Capital Partners, has acquired Columbia Ultimate Business Systems. Arlington Capital acquired Ontario Systems in September 2015.

Columbia is a provider of software used by outsourced revenue cycle management (RCM) and accounts receivable management (ARM) companies. Customers include collections agencies, debt buyers, banks, finance companies, retailers, and state and local governments. The company has more than 150 employees and is based in Vancouver, WA (www.columbiaultimate.com).

ontario systems nf1Ontario Systems is a provider of RCM software and services to healthcare providers, outsourced RCM and accounts receivable management firms, and government clients.  Ontario Systems’ customers include three of the top six health systems in the US and eight of the ten largest RCM and ARM firms. Ontario Systems is led by Ron Fauquher, President and CEO, and is headquartered northeast of Indianapolis in Muncie, IN (www.ontariosystems.com).

Matt Altman nf1“The combination of Ontario and Columbia creates a clear market leader in healthcare RCM and ARM software,” said Matt Altman, a Managing Partner at Arlington. “Building upon relative strengths in the healthcare and government markets, Ontario and Columbia together will be ideally positioned to further strengthen its product offerings across an array of end-markets.”

acp nf1Arlington Capital Partners has $1.5 billion of committed capital and invests in buyouts and recapitalizations of companies valued from $50 million to $500 million. Sectors of interest include government services and technology, aerospace & defense, healthcare, and business services & software.  The firm is based in Chevy Chase, MD (www.arlingtoncap.com).

© 2016 Private Equity Professional • 6-15-16

RoundTable Hits 5x on Sale

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RAH nf3RoundTable Healthcare Partners has completed the sale of the topical pharmaceutical business of its portfolio company Renaissance Acquisition Holdings to pharmaceutical company Mylan NV for $950 million in cash plus up to an additional $50 million in contingent payments.

“Renaissance is another example of RoundTable partnering with owner/founders to accelerate revenue and earnings growth in order to create a strategically valuable platform company,” said Lester Knight, Founding Partner of RoundTable.  “This transaction marks the first portfolio company sale from RoundTable’s $600 million Fund III, generating a return of more than five times invested equity capital for our investors.”

dpt nf1The topical division of Renaissance develops, manufactures, markets and sells branded and generic topical pharmaceutical products.  RoundTable founded Renaissance in 2010 when it acquired two contract manufacturing and development companies – Confab Laboratories based in Montreal, and DPT Laboratories based in San Antonio. Renaissance will continue to own and operate its sterile-focused specialty pharmaceutical business with development and manufacturing facilities in Lakewood, NJ (www.dptlabs.com) (www.confab.com).

As part of this transaction, Renaissance will continue to own and operate its sterile-focused specialty pharmaceutical business with development and manufacturing facilities in Lakewood, NJ.

roundtable nf1RoundTable Healthcare Partners is an operating-oriented private equity firm focused exclusively on the healthcare industry.  RoundTable has raised $2.75 billion in committed capital, including four equity funds totaling $2.15 billion and three subordinated debt funds totaling $600 million. The firm was founded in 2001 and is headquartered north of Chicago in Lake Forest, IL (www.roundtablehp.com).

Pierre Frechette nf1“On behalf of RoundTable and our investors, I would like to thank the outstanding management team and dedicated employees of Renaissance for creating a leading specialty pharmaceutical company,” said Pierre Frechette, Senior Operating Partner at RoundTable and the Chairman of the Board of Renaissance.  “We believe Mylan is an excellent strategic partner for this business, its employees and customers going forward.”

Mylan (NASDAQ:MYL) is a generic and specialty pharmaceuticals company headquartered north of London in Hatfield, UK (www.mylan.com).

Deutsche Bank (www.db.com) was the financial advisor to Renaissance.  Sidley Austin (www.sidley.com) acted as lead legal counsel to RoundTable.

© 2016 Private Equity Professional • 6-16-16

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