Chicago Pacific Founders has closed its debut fund at its $325 million hard cap. Chicago Pacific was launched in 2014 and invests exclusively in healthcare services companies.
Chicago Pacific will invest up to $75 million of equity capital per opportunity in growth, minority recap and buyout transactions for cash flow positive businesses. The new fund was oversubscribed and received commitments from pensions, endowments, insurance companies as well as industry investors and entrepreneurs.
Chicago Pacific was founded by Managing Directors Mary Tolan, Lawrence Leisure, and Vance Vanier. Ms. Tolan is the former CEO of Accretive Health – a hospital and physicians billing process manager which she co-founded in 2003 – and former Group Chief Executive for the Resources Operating Group at Accenture (previously Andersen Consulting). Mr. Leisure is a healthcare operating executive and is the current Chairman of ADVI Reimbursement and Health Policy Advisory Services and a former senior advisor of venture capital firm Kleiner Perkins Caufield & Byers. Mr. Vanier is also a healthcare operating executive and doctor – he received his medical degree from the Johns Hopkins University School of Medicine.
“We believe that the positive response of our limited partners to this fundraising process signals their conviction in the strength of our investment thesis, the team we’ve assembled and our expertise in creating value and driving returns at our portfolio companies,” said Ms. Tolan.
Chicago Pacific has three portfolio companies in the barn already: CPF Living Communities, an operator of senior living communities (www.gracemanagement.com); Marquee Dental Partners, a provider of dental practice management services (www.marqueedentalpartners.com); and Recovery Ways, an operator of addiction recovery centers (www.recoveryways.com).
In tandem with the final closing of the fund, the firm has hired Krista Hatcher as a new partner. Ms. Hatcher will be responsible for identifying, sourcing, analyzing, structuring, financing, managing, and exiting investments.
Ms. Hatcher has over seventeen years of private equity investment experience in growth-oriented, middle-market companies. Most recently she was a managing director at Kayne Anderson Capital and earlier in her career she worked at CHS Capital, Longview Asset Management, and J.P. Morgan & Company. Ms. Hatcher has a BBA from the University of Michigan and her MBA in finance and accounting from the University of Chicago.
“Krista brings to Chicago Pacific her extensive leadership experience and a successful track record investing in the middle market,” said Ms. Tolan. “Her extensive private equity investing expertise and leadership will be extremely valuable and perfectly complements our deep operating experience and capabilities.”
Chicago Pacific Founders is headquartered in Chicago (www.cpfounders.com).
© 2016 Private Equity Professional • 7-29-16
