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Shore Forms SCP Autism Services

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florida autism center nf1Shore Capital Partners has formed SCP Autism Services and acquired Florida Autism Center in partnership with Chrystin Bullock, who founded the company in 2005.

Florida Autism Center (FAC) provides treatment services to children diagnosed with Autism Spectrum Disorder (ASD). In addition, the company offers a private school program to students with ASD as an alternative to a public school setting. The company is one of the largest providers of autism services in Florida and has five centers located in central and northern Florida.  FAC is headquartered in Tallahassee (www.floridaautismcenter.info).

Chrystin Bullock nf1Chrystin Bullock is a Board Certified Behavior Analyst and has been providing autism therapy services since 2005.  “In seeking a partner for growth, it was important to select an organization that shared my commitment to clinical excellence. In Shore Capital we’ve found a partner with a track record of success and a deep understanding of the challenges in the autism therapy market,” said Ms. Bullock.

Shore Capital Partners invests in lower middle market healthcare related companies that have $5 million to $50 million of revenue and $1 million to $5 million of EBITDA. Shore targets equity commitments of $10 million to $15 million per platform.  Healthcare sectors of particular interest include behavioral health; healthcare staffing; infusion therapy; laboratory products & distribution; laboratory services; outpatient rehab therapy; urgent care; veterinary services; pharmaceutical services and contract research.  Shore was founded in 2009 and is based in Chicago (www.shorecp.com).

“We could not be more excited to partner with Chrystin and her team of clinicians and operators. We look forward to building a leading organization in Florida, while continuing to provide the highest quality clinical care to the autism community,” said John Hennegan, a partner at Shore Capital.

Shore plans to expand FAC through new facility openings, while maintaining a therapist-driven culture with a clear focus on clinical care.  In addition, Shore will be active in centralizing the finance, accounting, human resources, and IT functions of FAC so that therapists are able to spend more time providing care to children on the autism spectrum.  As part of this transaction, FAC has hired Ralph Nelson as Chief Financial Officer and Marta Sullivan as Vice President of Human Resources. The company will be adding a Chief Executive Officer in the coming months.

This investment represents the fourth platform investment out of Shore Capital Partners Fund I, LP, a $112.5 million fund raised in May 2014.

© 2015 PEPD • Private Equity’s Leading News Magazine • 9-9-15

TA Invests in Fertility Treatment Network

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CCRM nf2TA Associates has completed a growth equity investment in CCRM, a provider of fertility treatment services.

“Partnering with TA Associates is critical to our plan to expand our footprint in North America and around the world,” said Jon Pardew, CCRM’s President and Chief Executive Officer.  “With TA’s support, we will continue to broaden our network of fertility laboratories. In addition, the highly fragmented US IVF market, with approximately 500 clinics, presents possible future add-on opportunities for CCRM.”

CCRM operates a network of fertility clinics providing a variety of treatments from basic infertility care to advanced in vitro fertilization (IVF).  The CCRM network includes the Colorado Center for Reproductive Medicine, founded in 1987 by Dr. William Schoolcraft, as well as other partnerships and locations in California, Colorado, Minnesota, Texas and Toronto. The company is headquartered south of Denver in Lone Tree, CO (www.ccrmivf.com).

Jennifer Mulloy nf1“CCRM has proven excellence in pregnancy success rates,” said Jennifer Mulloy, a Managing Director at TA Associates who will join the CCRM Board of Directors. “We believe this success is due to high quality physician partners, extensive research and development efforts, and the company’s resulting best practices in the laboratory.”

TA makes buyouts and minority recapitalizations of profitable growth companies in the technology, financial services, business services, healthcare and consumer industries. Since founding in 1968, TA has invested in over 450 companies and has raised more than $18 billion in capital. The firm has offices in Boston, Menlo Park, London, Mumbai and Hong Kong (www.ta.com).

Ethan Liebermann nf1According to Ethan Liebermann, a Senior Vice President at TA Associates, trends in the fertility treatment sector supports TA investment. “Marketdata Enterprises estimates annual expenditures related to fertility treatment in the United States at $4 billion, and the Centers for Disease Control estimates that approximately 12% of women of reproductive age in the United States, or five to six million, engage in infertility-related medical appointments each year,” said Mr. Liebermann. “These figures reflect the marked trend over the last several decades of women seeking to have children later in life. We are confident that given these industry dynamics, and CCRM’s superior clinical outcomes, the company will see continued growth.”

© 2015 PEPD • Private Equity’s Leading News Magazine • 8-4-15

Brazos Closes Sale of Healthcare Solutions

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healthcare solutions nf1Brazos Private Equity Partners has completed the sale of its portfolio company Healthcare Solutions to Catamaran Corporation in an all cash transaction valued at $405 million.  Brazos first invested in Healthcare Solutions in 2006.

Healthcare Solutions provides medical cost management services to over 800 customers in the workers’ compensation and auto liability markets. The company’s services include pharmacy benefit management, specialty healthcare services, PPO networks, medical bill review, case management and Medicare set-aside services. Customers of the company include insurance carriers, third-party administrators, self-insured and governmental entities. Healthcare Solutions is headquartered northeast of Atlanta in Duluth, GA (www.healthcaresolutions.com).

jeff fronterhouse nf1“We are very pleased to complete this successful investment in Healthcare Solutions. Together with the leadership team at Healthcare Solutions, we have accomplished our goal of building the company into a market leader.  Healthcare Solutions has a very exciting future ahead and we wish everyone associated with the business continued success as they move forward as a part of Catamaran,” said Jeff Fronterhouse, Co-Chief Executive Officer and Co-Founding Partner of Brazos.

Since entering into the agreement to acquire Healthcare Solutions, publicly traded Catamaran Corporation (NASDAQ: CTRX) entered into an agreement on March 30 to be acquired by UnitedHealth Group in an all-cash transaction worth nearly $13 billion.

Brazos makes equity investments of $25 million to $100 million in middle-market companies with enterprise values from $50 million to $500 million. Sectors of interest include consumer, healthcare, commercial & industrial, and business services. Brazos has approximately $1.4 billion of equity capital under management and is based in Dallas (www.brazospartners.com).

Harris Williams & Co. and J.P. Morgan Securities served as financial advisors to Healthcare Solutions.

© 2015 PEPD • Private Equity’s Leading News Magazine • 4-10-15

Mansa Capital Acquires Accreon

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accreon nf1Mansa Capital Management has acquired Accreon, a healthcare technology and services company.  Mansa’s $5.5 million investment in Accreon will enable the company to accelerate its growth in the United States and will build on its position as a market leader in Canada.

Accreon is a healthcare technology and business services firm that integrates and manages health information. The company serves healthcare provider organizations, government entities, medical device companies and electronic medical records (EMR) vendors.  Accreon is headquartered in Boston and has Canadian offices in Fredericton, NB; Charlottetown, PEI; and Toronto, ON (www.Accreon.com).

Mansa Capital invested $5.5 million in Accreon along with the company’s new management team and original founders to finance the acquisition. The closing of the transaction also triggers the succession of Eric Demers to the position of President and CEO; Martin Ferguson, SVP of Delivery; and Michael Lavigne, SVP of Sales and Marketing.

Joining the Accreon Board of Directors will be Jason Torres, Mansa Capital Partner and Chief Operating Officer; Dr. William Winkenwerder Jr.; and Tom Burlin, who will serve as the company’s new Chairman of the Board.  Mr. Burlin was previously the COO of Affiliated Computer Services, a Fortune 500 company, and Dr. Winkenwerder was most recently the CEO of Highmark Health, one of the country’s largest diversified health insurance companies.

jason torres nf1“The Affordable Care Act has created an abundance of opportunity for healthcare technology companies such as Accreon, which is ripe for increased industry leadership in Canada as well as rapid expansion in the US market,” said Mr. Torres, who led the transaction for Mansa.

Mansa Capital invests in companies active in the health care services and health care technology sectors that have enterprise values up to $150 million.  Mansa focuses on companies as they prepare for expansion, acquisition, privatization or IPO. The firm is headquartered in Boston with additional offices in New York, Miami and Dallas (www.MansaCapital.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 4-8-15

Flexpoint Ford Invests in Summit Behavioral

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summit BHC NF1Summit Behavioral Healthcare, a provider of addiction treatment and behavioral health services, has received an investment from Flexpoint Ford.

Summit Behavioral owns and operates three free-standing addiction treatment centers: Great Oaks Recovery Center, a 32-bed residential treatment center serving the greater Houston market; Valley Recovery Center of California, a 48-bed addictions treatment center based in Sacramento; and Victory Addiction Recovery Center, a 22-bed addictions treatment center based in Lafayette, LA.  Summit Behavioral was founded by Trey Carter, Karen Prince and Chuck Edwards in June 2013 and is headquartered in Atlanta (www.summitbhc.com).

Perry Ballard nf1“CEO Trey Carter and the team at Summit have demonstrated a proven track record of delivering outstanding results for their clients, employees and partners.  We believe behavioral health and substance abuse treatment is a large unmet need in today’s healthcare landscape, and we are thrilled to partner with a team of this caliber.  We look forward to supporting the Summit team with significant additional capital to allow them to grow the company,” said Perry Ballard, Managing Director at Flexpoint Ford.

Flexpoint Ford invests from $10 million to $100 million in companies operating in the healthcare and financial services sectors. Flexpoint Ford currently has $1 billion in capital under management. The firm is based in Chicago with an additional office in New York (www.flexpointford.com).

“We are excited to partner with Flexpoint,” said Trey Carter, Summit’s CEO and founder.  “Most importantly, Flexpoint shares our mission of providing the highest-quality care for clients.  We look forward to working closely with the Flexpoint team, and we are eager to invest additional capital to accelerate the growth of our company.”

© 2015 PEPD • Private Equity’s Leading News Magazine • 3-12-15

Harbour Point Invests in Oak Street Health

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oak street health nf1Harbour Point Capital and Quantum Strategic Partners, a fund managed by the Soros family office, have made a growth capital investment in Oak Street Health, an operator of primary care centers focused on seniors with Medicare.

juneja nf1“Oak Street Health’s primary care model is at the nexus of population health, value-based care and rising consumerism – the three most important secular trends in health care,” said Robert Juneja, co-founder and Managing Director of New York-based Harbour Point Capital.

Today, Oak Street Health operates seven primary care centers in the Chicago metropolitan area, serving about 5,000 adults.  Its primary care centers feature clinicians who specialize in the care of older adults; convenient locations; transportation to and from appointments for eligible patients; same-day appointments; bilingual staff; community rooms that host daily educational and social events; and at most locations, on-site pharmacy and dental services. The company was founded in 2012 and focuses exclusively on seniors with Medicare.  Oak Street Health is headquartered in Chicago (www.oakstreethealth.com).

Oak Street Health plans to use the capital from Harbour Point and Quantum to fund expansion in the Chicago area and other Midwest markets.  “We are excited to expand and bring improved care to the older adults in our communities. There are thousands more seniors in Chicago and in other parts of the Midwest who do not have access to primary care targeted to their needs,” said Mike Pykosz, co-founder and Chief Executive Officer of Oak Street Health.

Harbour Point Capital was formed by Robert Juneja and Bret Bowerman, both former investment professionals with Irving Place Capital, in January of 2015.  Harbour Point invests from $10 million to $50 million of equity capital in companies that operate in the healthcare sector with a specific interest in companies active in accessible primary care, outpatient services, consumer-centered services and outsourced clinical services.  Harbour Point is headquartered in New York City and initially plans to fund investments on a transaction-by-transaction basis (www.harbourpointcapital.com).

Quantum Strategic Partners (QSP) invests in long duration investments such as capital-intensive start-ups, project development and growth equity transactions. The investment advisor to QSP is Soros Fund Management, a private investment management firm that serves as the principal investment advisor to a number of private investment funds that are managed exclusively for Soros family clients. QSP is headquartered in New York.

© 2015 PEPD • Private Equity’s Leading News Magazine • 3-9-15

Revelstoke Exits Accelecare Wound Centers

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accelercare nf1Revelstoke Capital Partners has sold its portfolio company Accelecare Wound Centers to Healogics, a portfolio company of Clayton, Dubilier & Rice.

Accelecare is the second largest provider of wound care services in the United States. The company operates 114 wound centers in outpatient hospital settings across 38 states. The company also operates a division that employs wound care physicians in skilled nursing homes and other long-term care settings. Accelecare is headquartered near Seattle in Bellevue, WA (www.accelecare.com).

“We are very pleased with the pace of Accelecare’s growth since we completed our investment in December 2013. Management’s focus on expanding the company’s footprint while increasing operational efficiencies created an attractive asset in the growing wound care market,” said Mark King, CEO, Managing Partner and Co-Founder of Revelstoke.

Revelstoke invests from $10 million to $250 million in companies that have at least $5 million of EBITDA.  Sectors of interest include healthcare services and products; transportation and logistics; specialty distribution; energy and energy services; building products; business and outsourced services; marketing services; financial services; industrial services; and medical technology. The firm is headquartered in Denver (www.revelstokecp.com).

Healogics, acquired by Clayton, Dubilier & Rice in May 2014, is the nation’s largest provider of advanced wound care services. Healogics and its affiliated companies manage nearly 600 wound care centers and saw more than 234,000 patients in 2014.  Healogics is headquartered in Jacksonville (www.healogics.com).

jeff nelson nf1“Accelecare has an exceptional market position and brand reputation in the wound care industry. We see incredible value in this acquisition, through which the combined business will benefit from increased operational scale enabling us to reach and heal more patients with chronic wounds,” said Jeff Nelson, CEO of Healogics.

Accelecare was represented by RBC Capital Markets and Fenwick and West.  Debevoise and Plimpton represented Healogics in the transaction.

© 2015 PEPD • Private Equity’s Leading News Magazine • 3-4-15

H.I.G. Completes Buy of Symbion from Crestview

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symbion2 nf2Surgery Partners, a portfolio company of H.I.G. Capital, has completed its previously announced acquisition of Crestview Partners’ portfolio company Symbion Holdings for $792 million.

Symbion, acquired by Crestview in April 2007, is an operator of 56 short-stay ambulatory surgery centers and surgical hospitals located in 24 states. The company is headquartered in Nashville (www.symbion.com).

Surgery Partners, a portfolio company of H.I.G. Capital since January 2010, is an owner and operator of ambulatory surgery centers.  The company was founded in 2004 and has established a national platform of ASCs, with surgical expertise in orthopedics, ophthalmology, pain management, gastrointestinal, ENT and general surgery. Surgery Partners is headquartered in Chicago (www.surgery-partners.com).

According to H.I.G., the combination of Symbion and Surgery Partners creates the second largest independent ambulatory surgery center (ASC) operator in the US and will generate over $900 million in annual revenues.  The combined company will operate facilities in 26 states and will provide clinical services from over 2,400 physicians to over 500,000 patients annually. In addition to surgical services, the businesses operate numerous outpatient ancillary lines of care, including anesthesia, diagnostic testing, radiation oncology, pharmacy, urgent care, and physician services.

Chris Lailata nf1“We look forward to building upon the momentum of Surgery Partners as it continues to transform the ASC industry,” said Chris Laitala, Managing Director of H.I.G. “We are excited to support the combined business, including our new partners at Symbion, in continuing to construct a best-in-class, cost-effective, national integrated care model for surgical specialists.”

As part of the transaction, Surgery Partners entered into a new $1.4 billion senior secured credit facility to finance the cash portion of the purchase price and to repay borrowings under Surgery Partners’ and Symbion’s existing credit facilities.  Jefferies acted as financial advisor to Surgery Partners and provided committed debt financing for the transaction. Morgan Stanley & Co. acted as financial advisor to Symbion.

H.I.G. Capital specializes in providing capital to small and medium-sized companies and invests in management-led buyouts and recapitalizations of manufacturing or service businesses. H.I.G. Capital has more than $17 billion of capital under management. The firm was founded in 1993 and is based in Miami with additional offices in Atlanta, Boston, Chicago, Dallas, New York, San Francisco, London, Hamburg, Madrid, Milan, Paris, and Rio de Janeiro (www.higcapital.com).

Crestview Partners invests from $100 million to $250 million in companies with enterprise values up to $3 billion. Sectors of specific interest include media, financial services, healthcare and energy. The firm will invest in other industries where its relationship network and senior operating capabilities provide an advantage. The firm was founded in 2004 and is based in New York (www.crestview.com).

2014 PEPD • Private Equity’s Leading News Magazine • 11-4-14

New Mountain Acquires HealthPort

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Healthport nf1HealthPort, a provider of secure access to confidential medical information for healthcare organizations and insurance payors, has entered into an agreement to be acquired by New Mountain Capital.  The transaction is expected to close in the fourth quarter of 2014.

HealthPort processes over 20 million medical record requests each year on behalf of over 15,000 healthcare facilities, including over one-third of all hospitals nationwide. The company also offers audit management tools to health care providers, and is also a provider of information for insurance company payors and commercial health plans. HealthPort is headquartered in Alpharetta, GA (www.healthport.com).

“New Mountain is the ideal partner for HealthPort given its long track record of ‘building great businesses’, and we will now have more resources than ever to achieve our growth and strategic objectives,” said Mike Labedz, HealthPort’s CEO. “We look forward to working with New Mountain.”

New Mountain Capital currently manages private and public equity funds with over $15 billion of assets under management. The firm is an industry generalist but has specific expertise in education, health care, software, business services, logistics, specialty chemicals, federal services, media, consumer products, financial services and insurance, environmental services, infrastructure and energy.  Last month, New Mountain held a final close of its fourth private equity fund, New Mountain Partners IV, LP, with $4.1 billion of capital commitments. The fund, which had a target of $3.0 billion, was oversubscribed at its hard cap of $4.0 billion of limited partner commitments.  New Mountain was founded in 1999 and is headquartered in New York (www.newmountaincapital.com).

“HealthPort is the highly regarded leader in a very important and growing sector of medical information management, and we look forward to working with the HealthPort team to build the company for its next phase of growth,” said Matt Holt, Managing Director of New Mountain. “Over its long history, HealthPort has been committed to the success of its customers. We intend to work closely with HealthPort’s management to accelerate growth investments and strategic development, and to make the company an even more valued partner to its customer base.”

Credit Suisse and TripleTree acted as financial advisors to New Mountain.

2014 PEPD • Private Equity’s Leading News Magazine • 11-3-14

Welsh, Carson, Anderson & Stowe Exits Matrix Medical

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matrix medical nf1Welsh, Carson, Anderson & Stowe has completed the sale of its portfolio company, Matrix Medical Network, to the Providence Service Corporation (Nasdaq: PRSC) for a purchase price of $400 million, including $360 million in cash and shares of Providence common stock with a value at closing of $40 million.

The Welsh, Carson, Anderson & Stowe (WCAS) equity investment in Matrix Medical generated a total gain $213 million, representing a 3.1 times investment multiple and a 46% internal rate of return.

Matrix Medical provides risk-adjustment medical assessment services to Medicare Advantage health plans.  The company utilizes a captive provider network of over 600 nurse practitioners to provide onsite medical evaluations and document member diagnoses in 33 states. Matrix Medical is based in Scottsdale, AZ (www.matrixforme.com).

WCAS acquired Matrix Medical in September 2011. During the course of WCAS’ ownership, the company focused on several operating initiatives: (i) increasing production capacity to meet growing customer demand, (ii) implementing management team metrics and a dashboard to drive visibility, process improvements and accountability, (iii) continuing to drive operational improvements and (iv) developing a long-term strategic plan to diversify the company’s service offering. As a result of these efforts, Matrix Medical has generated three-year revenue and Adjusted EBITDA compound annual growth rates of over 45% and 75%, respectively.

randy dobbs nf1Under WCAS’s ownership, Matrix was led by CEO, Randy Dobbs, a repeat WCAS CEO and former WCAS Senior Industry Executive. WCAS and Mr. Dobbs hired over 20 senior managers, who previously worked at a WCAS portfolio company. In addition, several key members of the management team were recruited from large healthcare companies.

“I have enjoyed working with WCAS to build Matrix Medical over the last several years,” said Mr. Dobbs.  “We are proud of the operational growth that Matrix Medical achieved and believe that the company is well positioned as a market leader.”

WCAS is focused exclusively on investments in information/business services, and healthcare.  Since its founding in 1979, WCAS has organized 15 limited partnerships with total capital of over $20 billion.  WCAS has been capitalizing on the attractive exit environment this year, completing four portfolio company sales (GlobalCollect, Solstas Lab Partners, Peak 10 and Matrix Medical) and two initial public offerings of Paycom Software (NYSE: PAYC) and K2M Group Holdings (Nasdaq: KTWO). Including pending transactions, WCAS has generated distributions to investors of $5.5 billion since the beginning of 2013. This has resulted in WCAS’s investors receiving $5.42 of distributions for every $1 of capital called.  The firm is currently investing through its latest fund, Welsh, Carson, Anderson & Stowe XI, LP, and is based in New York (www.welshcarson.com).

2014 PEPD • Private Equity’s Leading News Magazine • 10-30-14

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