Sverica Capital Management has acquired a majority stake in RMS Healthcare Management, a provider of management services to Med First Immediate Care and Family Practice (Med First).
Med First provides primary care, urgent care and occupational medicine services through 13 clinics located across rural North Carolina and South Carolina. RMS is headquartered in Jacksonville, NC (www.thinkmedfirst.com).
Dr. Randy Schilsky, the founder and CEO of RMS, will remain involved in business development for Med First under Sverica ownership. “I am excited to partner with an experienced healthcare investor like Sverica Capital. Their track record working with growing healthcare companies was a major factor in my decision to select them as a partner.”
Sverica invests in service oriented businesses and light industrial manufacturers. The firm targets companies with enterprise values under $100 million and EBITDAs greater than $3 million. Sverica was founded in 1993 and has raised over $700 million of capital across four funds. The firm has offices in Boston and San Francisco (www.sverica.com).
Med First is a Patient-Centered Medical Home (PCMH) and participates in the North Carolina Medical Society’s Rural ACO initiative. According to the American College of Physicians, a PCMH is a care delivery model that coordinates a patient’s medical treatment through their primary care physician to ensure they receive the necessary care when and where they need it. The objective is to have a centralized setting that facilitates partnerships between individual patients and their personal physicians and, when appropriate, the patient’s family.
“Med First is one of only a small number of primary care practices that are both Patient Centered Medical Home certified and offer the convenience of an urgent care model,” said Gregg Osenkowski, a Vice President at Sverica Capital. “This combination is particularly relevant for rural markets where there is a chronic shortage of quality primary care services.”
This transaction marks Sverica’s second investment made from its fourth fund, Sverica Capital Partners Fund IV LP, which closed in March 2016 at its hard cap of $275 million.
St. Louis-based Cadiz Capital (www.cadizcapital.com), an investor in the energy, healthcare, information technology, and manufacturing sectors, co-invested alongside Sverica in the transaction.
© 2016 Private Equity Professional • 8-18-16
