Welsh, Carson, Anderson & Stowe (WCAS) has held a final close of WCAS XIII LP (WCAS XIII). The new fund was oversubscribed and closed at its hard cap of $4.3 billion and exceeded its $3.5 billion target.
The new fund was well received by existing limited partners as WCAS XIII’s re-up rate from WCAS XII investors was over 95% and the six largest investors in WCAS XIII increased their commitments from WCAS XII by 25%. New investors contributed over $700 million of capital. Capital commitments from limited partners totaled $4 billion with WCAS general partners and other affiliated entities committing the balance of the capital.
“We are gratified to have received such strong support from our limited partners for WCAS XIII,” said Anthony de Nicola, WCAS president and managing partner of WCAS. “This new fund will pursue our long-established strategy of investing in two of the fastest-growing industries in the US, technology and healthcare. We continue to see excellent opportunities for our talented investment professionals and highly experienced operating partners to acquire and actively support outstanding management teams in building their extraordinary companies.”
Contributing to this successful fundraise was the performance of the firm’s earlier fund, WCAS XII, a $3.3 billion 2015 vintage year fund. Through March 31, 2019, WCAS XII generated a net internal rate of return of 27% making it a top-quartile fund according to the latest data from Cambridge Associates. Since 2013, the WCAS partnerships have invested $5 billion of capital and distributed $14 billion.
WCAS is focused exclusively on investments in technology (with specific subsector interest in payment technology, software and data analytics, financial technology, IT infrastructure, mobility, and security & compliance) and healthcare (with specific subsector interest in healthcare providers, specialty facilities, payor services, and healthcare information technology). Since its founding in 1979, the firm has raised over $27 billion of committed capital and has invested in over 85 healthcare and 100 technology companies.
Recent investments by WCAS include: Atlanta-based Kindred at Home, the largest home health, hospice and personal care operator in the US (acquired in 2018 in partnership with Humana and TPG Capital); Orem, UT-based Avetta, a provider of cloud-based contractor risk management and compliance software to enterprise clients (2018); Yardley, PA-based MMIT, a provider of
specialized market data and analytics to pharmaceutical and managed care companies (acquired in 2018); Des Moines, IA-based Intoxalock, a provider of vehicle-based ignition interlock devices (2017); Denver-based InnovAge, a provider of senior care programs and services (acquired in 2016); and Boise, ID-based Clearwater Analytics, a data and SaaS provider serving the investment portfolio accounting, reporting and analytics market (2016).
“As the firm celebrates its 40-year anniversary, we are grateful for the strong relationships we have cultivated within the limited partner community as well as with our management teams. These relationships are the foundation of the firm’s culture and are critical to WCAS’s enduring success in building businesses,” said Scott Mackesy, a managing partner at WCAS.
Welsh, Carson, Anderson & Stowe is based in New York (www.welshcarson.com).
© 2019 Private Equity Professional | July 30, 2019