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The Healthcare Investor

Insights on Issues & Trends that Impact Investments in Healthcare & Life Science Businesses

Healthcare & Life Sciences Private Equity Deal Tracker: Bain Capital-Backed Navicure Merges With ZirMed

Posted in Healthcare Services Investing

Navicure and ZirMed have announced the two companies are merging.

Navicure, based Duluth, Ga., is a provider of cloud-based medical claims management and patient payment solutions. Bain Capital Private Equity acquired a majority stake in Navicure in 2016.

ZirMed, based in Louisville, Ky., provides an end-to-end platform of cloud-based financial performance management solutions.

During the transition, the companies will operate under both brands.

Terms of the merger were not disclosed.

NRD Capital Management’s Strategy and Focus: Q&A With Susan Beth

Posted in Healthcare Services Investing

Susan Beth is chief operating officer of NRD Capital Management, an Atlanta-based private equity firm.

Q: How would you describe NRD’s investment focus?

Susan Beth: NRD Capital is focused on investing in multi-location, franchise concepts with superior products/services and compelling unit economics across several business sectors. At our core, we are a fund that values opportunity. As such, we look for investments that allow us to create new and expanded opportunity for both our investors and the business owners/entrepreneurs — whether this is their first career endeavor or their second or third act.

In fact, we believe the opportunity that franchising presents is so strong, we have set a mission to help put 1,000 passionate entrepreneurs into business.

Q: What strategies do you use to identify companies worth possibly investing in?

SB: The majority of the companies we consider as potential investments come to us through our network of longstanding personal and professional relationships. From current and past business partners to investment bankers, the relationships we have built over the years serve as valuable resources in helping to identify the next great opportunity for NRD and our investors.

In addition to referrals we receive, our own experiences as consumers often drive our business interests toward potential investments. The businesses we and our families visit as well as the products we need and use — these daily interactions spark interest in learning more about opportunities to work with companies and brands that we believe in and can help to grow.

Q: With the closing of your new fund, NRD Partners II, in July, you indicated a plan to invest in healthcare franchising. Why pursue healthcare investments?

SB: To date, franchising has seen limited applications in healthcare. But as healthcare continues to be a growing sector of the economy, it presents a significant opportunity for franchising.

Expanding franchising to healthcare will lead to improved access and delivery of care, reaching beyond traditional limits of scale. Further, expanding healthcare in this manner will reduce costs to consumers while, at the same time, creating new opportunities for employment. These opportunities will result in flexible delivery models that will also permit job flexibility and improved work life balance.

Q: Do you have any plans to target specific sectors within healthcare for possible investments?

SB: Our commitment to remaining opportunistic and flexible includes not limiting our interests to any specific sectors. As such, our focus is less on the healthcare category and more on the franchise model itself. The concepts of highest interest to us are those that are scalable and can be efficiently replicated into multi-location businesses.

Q: When considering investments in healthcare companies, what qualities do you look for?

SB: We are interested in investing in concepts that are appealing to the public, enhance our portfolio and have the ability to be replicated. Changes in healthcare legislation will continue to impact healthcare at every level, including which services and concepts work as franchise models. We are incredibly excited to be a part of this growing opportunity in healthcare.

Healthcare & Life Sciences Private Equity Deal Tracker: Levine Leichtman Acquires Capsa Healthcare

Posted in Healthcare Services Investing

Levine Leichtman Capital Partners (LLCP) has announced its acquisition of Capsa Healthcare.

Capsa, based in Portland, Ore., is provider of mobile workstations, medication management products and pharmacy automation solutions.

LLCP is a Los Angeles-based private equity firm founded in 1984. It makes structured equity investments in middle market companies in the United States and Europe. LLCP invests in healthcare and several other industries.

Terms of the acquisition were not disclosed.

Healthcare & Life Sciences Private Equity Deal Tracker: Pouschine Cook Acquires Southern Dental Alliance

Posted in Healthcare Services Investing

Pouschine Cook Capital Management has announced its acquisition of Southern Dental Alliance.

Southern Dental Alliance (SDA), based in Kennesaw, Ga., is a dental services organization providing business support services to affiliated dental practices in micropolitan areas across the Southeastern United States. At the time of the acquisition, SDA had 32 practices located in Georgia, Tennessee and South Carolina.

Pouschine Cook, based in New York, is a private equity firm that invests in private, middle- market companies. The company focuses on healthcare services and business products and services.

The acquisition was made in partnership with other parties. Financial terms were not disclosed.

Healthcare & Life Sciences Private Equity Deal Tracker: Cagan McAfee and Myles Sherman Acquire Minimally Invasive Devices

Posted in Healthcare Services Investing

Cagan McAfee Capital Partners and Myles Sherman have jointly acquired of Minimally Invasive Devices (MID), according to a news release.

MID, which has changed its name to FloShield, is based in Columbus, Ohio. It develops laparoscopic visualization systems, including FloShield Air and FloShield Plus.

Cagan McAfee, based in Cupertino, Calif., is a private investment firm focused on providing expansion stage venture capital and growth capital. It invests in several sectors, including healthcare.

Myles Sherman is an investor/operator based out of Austin, Texas.

Financial terms were not disclosed.

Healthcare & Life Sciences Private Equity Deal Tracker: Ares Management PE Group Invests $1.45 Billion in DuPage Medical Group

Posted in Healthcare Services Investing

DuPage Medical Group has closed a strategic partnership with funds managed by the private equity group of Ares Management, according to a press release.

The $1.45 billion transaction closed August 15.

DuPage Medical Group, based in Downers Grove, Ill., is an independent, multi-specialty physician group with more than 600 physicians in over 80 suburban Chicago locations.

Ares Management, with more than more than 15 offices in the United States, Europe, Asia and Australia, is a publicly traded (NYSE:ARES), global alternative asset manager. Its PE group had approximately $26 billion of assets under management as of June 30.

Under the terms of the transaction, DMG’s physician group remains 100% physician owned and directed. DMG retains a significant ownership stake in the practice management company. Ares acquired the stake in DMG Practice Management Solutions owned by Summit Partners, which made a $250 million investment last year.

The press release indicated that the investment by Ares will support growth initiatives across the entire organization, including DMG Practice Management Solutions and DMG subsidiary Boncura Health Solutions.

This investment exemplifies continued private equity interest in physician practice management models generally and multispecialty clinics more specifically.

Healthcare & Life Sciences Private Equity Deal Tracker: KKR to Acquire Covenant Surgical Partners

Posted in Healthcare Services Investing

KKR will acquire Covenant Surgical Partners from several firms which share ownership of the company, according to a press release.

Kohlberg Kravis Roberts (KKR) & Co., based in New York, considers investments in all industries, including healthcare. The firm is publicly traded under the ticker symbol KKR. It prefers to invest in a range of debt and public equity investing and may co-invest, seeking a controlling ownership of a company or a strategic minority positions.

Covenant Surgical Partners, headquartered in Nashville, Tenn., is an acquirer and operator of ambulatory surgery centers and physician practices. The company has 37 facilities in 17 states.

Covenant Surgical Partners is owned by DFW Capital Partners, Iroquois Capital Group, PineBridge Investments and other shareholders.

Financial details of the transaction were not disclosed.

Bow River Capital Partners Closes $262 Million Private Equity Fund

Posted in Healthcare Services Investing

Bow River Capital Partners has announced it has closed its fourth buyout fund at $262 million.

The firm said it will use the “2017 Fund” to invest in lower-middle-market companies in healthcare and other sectors.

Bow River, based in Denver, targets investments in the U.S. Rocky Mountains, Midwest, Southwest and Canada. PE investment criteria include companies with $10 million to $75 million in revenue and EBITDA of $3 million to $10 million in several industries, including healthcare services.

Healthcare & Life Sciences Private Equity Deal Tracker: Baird Invests in Prescient Healthcare Group

Posted in Healthcare Services Investing

Baird Capital has announced it has acquired an interest in Prescient Healthcare Group.

Baird Capital, based in Chicago, is the direct investment arm of Robert W. Baird & Co. It makes private equity, venture capital and growth equity investments in healthcare and other targeted sectors.

Prescient, with U.S. offices in New York and San Francisco, is a product strategy consultancy firm to the biopharmaceutical industry.

Financial terms were not disclosed.

Healthcare & Life Sciences Private Equity Deal Tracker: KKR Portfolio Company to Acquire WebMD for $2.8 Billion

Posted in Healthcare Services Investing

KKR has announced its portfolio company, Internet Brands, will acquire WebMD Health Corp. The transaction is valued at approximately $2.8 billion.

Kohlberg Kravis Roberts (KKR) & Co., based in New York, considers investments in all industries, including healthcare. The firm is publicly traded under the ticker symbol KKR. It prefers to invest in a range of debt and public equity investing and may co-invest, seeking a controlling ownership of a company or a strategic minority positions.

WebMD Health Corp., based in New York, is a provider of health information services. The WebMD Health Network includes WebMD.com, Medscape.com, MedicineNet.com and other sites and apps. The firm is publicly traded under the ticker symbol WBMD.

Internet Brands, based in El Segundo, Calif., is an online media and software services organization focused on health and other industries. The firm is a portfolio company of KKR and Temasek.

The acquisition is expected to close during the fourth quarter of 2017.