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The Healthcare Investor

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

GI Partners Closes Fifth Fund With $2.7 Billion

Posted in Healthcare Services Investing

GI Partners has announced the closing of its fifth fund, Fund V.

It was oversubscribed at its hard cap of $2.7 billion, surpassing the target of $2.3 billion.

GI Partners, based in San Francisco, is a middle-market private equity firm active in several sectors, including healthcare.

The firm indicated it would use Fund V capital for control-oriented investments in North American middle-market businesses. Fund V will primarily target investments with enterprise values between $250 million and $1 billion in healthcare and other sectors.

Healthcare & Life Sciences Private Equity Deal Tracker: Silver Oak Acquires Caring People

Posted in Healthcare Services Investing

Silver Oak Services Partners has announced it will acquire Caring People.

Silver Oak, based in Evanston, Ill., is a lower middle-market private equity firm. It typically invests in healthcare, business and consumer services companies with EBITDA of $3 million to $20 million.

Caring People, based in New York, is a home care agency which offers companion care, live-in care and skilled nursing services to seniors.

Financial terms were not disclosed.

Healthcare & Life Sciences Private Equity Deal Tracker: NRD Capital Invests in FundRX

Posted in Healthcare Services Investing

NRD Capital Management has announced a growth capital investment in FundRx.

The investment was made through NRD’s affiliate NRD Healthcare Solutions.

NRD Capital Management, based in Atlanta, invests in small- to medium-sized franchisors. The firm seeks to make equity investments from $3 million up to $25 million.

FundRx, based in New York, is a venture capital platform that builds and invests in healthcare and life sciences startups. It has a portfolio of 15 companies.

Terms of the transaction were not disclosed.

Blue Wolf Capital Closes New Fund at $540 Million

Posted in Healthcare Services Investing

Blue Wolf Capital Partners has announced it has closed its fourth fund (Blue Wolf Capital Fund IV) with $540 million in total equity commitments.

Blue Wolf, based in New York, is a private equity firm that specializes in control investments in middle-market companies in several industries, including healthcare.

The healthcare companies in its portfolio are StateServ Holdings, Great Lakes Caring, ModernMD Urgent Care, Pharmaceutical Strategies Group and Healthcare Laundry Systems.

With the closing of its fourth fund, Blue Wolf Blue now manages over $1.2 billion in capital and capital commitments.

Healthcare & Life Sciences Private Equity Deal Tracker: PE-Backed Invo Healthcare Acquires Autism Home Support Services

Posted in Healthcare Services Investing

Invo Healthcare has announced it has acquired Autism Home Support Services.

Autism Home Support Services, based in Northbrook, Ill., is a provider of home- and center-based applied behavioral analysis therapy to children diagnosed with autism spectrum disorder.

Invo Healthcare, with offices in Pennsylvania and Florida, is a provider of behavioral health and therapeutic services to individuals with special needs and autism.

Invo is a portfolio company of The Wicks Group, The Jordan Company and Post Capital Partners.

Terms of the acquisition were not disclosed.

Healthcare & Life Sciences Private Equity Deal Tracker: Express Scripts to Acquire PE-Backed eviCore for $3.6 Billion

Posted in Healthcare Services Investing

Express Scripts will acquire eviCore healthcare for $3.6 billion from investors including General Atlantic, TA Associates and Ridgemont Equity Partners, according to a news release.

eviCore, headquartered in Bluffton, South Carolina, is a provider of medical benefits management solutions and manages medical benefits for 100 million people, according to the company.

Express Scripts, headquartered in St. Louis, is a provider of integrated pharmacy benefit management services. The company also distributes biopharmaceutical products and provides cost-management and patient-care services.

The transaction is expected to close in the fourth quarter of 2017.

Healthcare & Life Sciences Private Equity Deal Tracker: Primus Capital Invests in Healthcare Bluebook

Posted in Healthcare Services Investing

Primus Capital Funds has made an investment in Healthcare Bluebook, according to a news release.

Healthcare Bluebook, based in Nashville, is an independent provider of healthcare price and quality transparency solutions.

Primus Capital, with offices in Cleveland and Atlanta, is a growth-oriented private equity firm that invests in healthcare, software and technology-enabled services companies. Founded in 1984, Primus pursues buyouts, recapitalizations, secondary share purchases and expansion financings.

Terms of the transaction were not disclosed.

Healthcare & Life Sciences Private Equity Deal Tracker: Avista to Acquire Miraca Life Sciences

Posted in Life Sciences Investing

Avista Capital Partners will acquire Miraca Life Sciences from Miraca Holdings, according to a news release.

Miraca Life Sciences, based in Irving, Texas, is a national, independent anatomic pathology lab providing subspecialty anatomic pathology services in the fields of gastroenterology, dermatology, hematology, breast health and urology.

Avista, headquartered in New York, a private equity firm that makes middle-market control buyout investments in the healthcare sector. Founded in 2005, the company has approximately $6 billion under management.

Miraca Holdings is a Japan-based holding company in the healthcare sector.

Financial terms were not disclosed.

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.