Varsity Closes Third Fund

Varsity Healthcare Partners has closed its latest fund, Varsity Healthcare Partners III LP, with total capital commitments of $417 million. The new fund hit its hard cap and was raised in just five months.

Varsity makes control investments of $20 million to $60 million in lower middle market healthcare services companies generating up to $15 million of EBITDA. The firm has specific interest in multi-site healthcare providers operating in fragmented healthcare subsectors. The firm was founded by David Alpern and Kenton Rosenberry and has offices in Los Angeles and Stamford.

In April 2019, the firm acquired Angels of Care, a Sherman, TX-based provider of home health services to children and young adults with complex medical conditions. The company was founded in 2000 and employs over 3,000 clinicians across 18 locations in Texas and Colorado.

Other current investments include Probo Medical, a reseller and repairer of ultrasound equipment (acquired in September 2018); Emergency Care Partners, a provider of emergency medicine and emergency department management services to hospitals across the Southeastern US (acquired in September 2018); Ideal Option, a provider of medication-assisted treatment and behavioral counseling services for individuals suffering from opioid use (acquired in September 2018); and Orthopedic Care Partners, a provider of  musculoskeletal care services through the Florida-based Orthopaedic Institute (acquired in November 2017).

The firm’s earlier fund, Varsity Healthcare Partners II LP, closed in December 2016 with $300 million of capital commitments.

UBS Securities was the placement agent for this fundraise and Kirkland & Ellis provided legal services.

© 2019 Private Equity Professional | August 28, 2019

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