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The Healthcare Investor

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

Veritas Capital and Evergreen Coast Capital to Acquire athenahealth for $5.7 Billion

Posted in Healthcare Services Investing

athenahealth, Veritas Capital and Evergreen Coast Capital have announced that an affiliate of Veritas and Evergreen will acquire athenahealth for approximately $5.7 billion in cash.

Following completion of the acquisition, Veritas and Evergreen are expected to combine athenahealth with Virence Health, the GE Healthcare value-based care assets that Veritas acquired earlier this year. The combined company is expected to operate under the athenahealth brand and be headquartered in Watertown, Mass.

The transaction is expected to close in the first quarter of 2019.

athenahealth, based in Watertown, is a provider of cloud-based services for medical practices and health systems.

Veritas, based in New York, is private equity firm with over $9.5 billion of assets under management. The firm invests in several sector, including healthcare.

Evergreen, based in Melo Park, Calif., is the private equity subsidiary of hedge fund Elliott Management Corp. Elliott, based in New York, had approximately $35 billion in assets under management as of July 1, 2018.

Women in Private Equity to Know: Ya Tung

Posted in Healthcare Services Investing

McGuireWoods has long been an avid supporter of the advancement of professional women. As part of our initiative seeking to expand the leadership of women in private equity, we are profiling women leaders in private equity throughout 2018. We are hopeful that this series will serve to inspire other women to pursue their careers in private equity in a way that best challenges and motivates them, which these impressive women have all done. This month, we are pleased to feature Ya Tung of GCM Grosvenor. Access her profile by clicking here.

To recommend a woman for a future interview, email Amber Walsh at awalsh@mcguirewoods.com.

Healthcare & Life Sciences Private Equity Deal Tracker: KKR Completes Acquisition of Envision

Posted in Healthcare Services Investing

KKR has announced it has completed its acquisition of Envision Healthcare Corp.

The deal, which was previously announced in June, is valued at $9.9 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 position.

Envision, based in Nashville, Tenn., is a provider of physician-led services and post-acute care, and ambulatory surgery services. As of June 30, 2018, Envision says it delivered physician services s to more than 1,800 clinical departments in healthcare facilities in 45 states and the District of Columbia.

As a result of the acquisition, Envision became a wholly owned subsidiary of funds affiliated with KKR and Envision’s common stock ceased trading on the New York Stock Exchange.

DW Healthcare Sells Reliant Rehabilitation to H.I.G. Capital

Posted in Healthcare Services Investing

DW Healthcare Partners (DWHP) has announced the sale of portfolio company Reliant Rehabilitation to an affiliate of H.I.G. Capital.

Reliant, based in Plano, Texas, is a provider of contract therapy services to post-acute facilities, serving more than 800 therapy sites in 40 states.

DWHP, with its U.S. office in Park City, Utah, is a PE firm focused exclusively on healthcare. Founded in 2002, DWHP targets investments in mid-to-late-stage companies.

H.I.G. Capital, based in Miami, is a PE and alternative assets investment firm. Founded in 1993, H.I.G. specializes in providing debt and equity capital to small- and mid-sized companies.

Women in Private Equity to Know: Caroline Ducas

Posted in Healthcare Services Investing

McGuireWoods has long been an avid supporter of the advancement of professional women. As part of our initiative seeking to expand the leadership of women in private equity, we are profiling women leaders in private equity throughout 2018. We are hopeful that this series will serve to inspire other women to pursue their careers in private equity in a way that best challenges and motivates them, which these impressive women have all done. This month, we are pleased to feature Caroline Ducas of Resolute Capital Partners. Access her profile by clicking here.

To recommend a woman for a future interview, email Amber Walsh at awalsh@mcguirewoods.com.

Tailwind Capital Closes Third Fund With $1.8 Billion

Posted in Healthcare Services Investing

Tailwind Capital has announced it has closed its third fund, Tailwind Capital Partners III, at $1.8 billion of commitments.

Tailwind indicated the funding will be used to continue the firm’s existing investment strategy.

Based in New York, Tailwind is a middle-market private equity firm focused on growth-oriented investments within healthcare and a few other sectors. The firm primarily targets companies with enterprise values up to $250 million. Current healthcare companies in its portfolio include Abode Healthcare (which was an investment from the new fund), Cumberland Consulting Group, Edenbridge Pharmaceuticals and National HME.

Healthcare & Life Sciences Private Equity Deal Tracker: Blue Ox Leads $52 Million Investment in Epic Sciences

Posted in Healthcare Services Investing

Blue Ox Healthcare Partners has announced it led a $52 million series E investment in Epic Sciences.

Epic Sciences, based in San Diego, is a developer of diagnostics designed to advance the treatment and management of cancer, including a predictive test the company says determines how cancer cells will respond to a therapy.

Blue Ox, based in New York, is private equity investment firm focused on providing capital to growth stage healthcare companies. Founded in 2009, the firm focuses on businesses in the middle market, specifically targeting those companies with commercial products and solutions in healthcare services, healthcare IT, and medical and life sciences technologies.

Participants in the financing round also included new investors Deerfield Management and Varian and existing investors Altos Capital Partners, Genomic Health, Domain Associates, VI Ventures, Alexandria Venture Investments and Sabby Management, according to a news release.

Proceeds are expected to be used to accelerate Epic’s clinical studies and execution of its growth plan.

Investor Interest in Oncology Continues with General Atlantic’s Majority Stake in Startup

Posted in Healthcare Services Investing

General Atlantic has invested $200 million in a startup focused on supporting the entire continuum of cancer care treatment, according to a press release and Wall Street Journal report.

The startup — OneOncology — is a combination of cancer-treatment practices Tennessee Oncology, West Cancer Center (also based in Tennessee) and New York Cancer & Blood Specialists. Healthcare technology and services company Flatiron Health, which focuses on oncology, will power OneOncology’s technology and data platform.

General Atlantic’s investment makes it the majority owner of the new company. General Atlantic, based in New York, is a private equity firm targeting investments in healthcare and other sectors.

Such significant private equity investments have remained stead in oncology, with other notable deals including Vestar Capital Partners’ 2008 acquisition of 21st Century Oncology, Welsh Carson’s 2004 acquisition of U.S. Oncology and, more recently, Pharos Capital’s 2018 acquisition of Horizon Oncology and subsequent launch of Verdi Oncology.

Healthcare & Life Sciences Private Equity Deal Tracker: Roundtable Healthcare Partners and Portfolio Company Acquire Bovie Medical’s Electrosurgical Business

Posted in Healthcare Services Investing

RoundTable Healthcare Partners has announced its portfolio company, Symmetry Surgical, completed the acquisition of Bovie Medical’s electrosurgical business.

The business of Bovie, based in Clearwater, Fla., develops and manufactures generators, electrodes, cauteries and accessories used in doctors’ offices, surgery centers and hospitals.

RoundTable is an operating-oriented firm focused exclusively on the healthcare industry. The company, based in Lake Forest, Ill., targets middle-market investments in medical devices, medical products and disposables, specialty pharmaceuticals, medication delivery systems, specialty distribution and complementary outsourced services.

Symmetry, based in Antioch, Tenn., is a marketer of reusable, reposable and single-use surgical instrumentation and specialty devices.

The acquisition of Bovie complements Symmetry’s existing Olsen energy portfolio and expands its line of single-use surgical products, according to a news release.

Note: Learn more about RoundTable and other leading PE firms that invest in healthcare here.

Women in Private Equity to Know: Katie Noggle

Posted in Healthcare Services Investing

McGuireWoods has long been an avid supporter of the advancement of professional women. As part of our initiative seeking to expand the leadership of women in private equity, we are profiling women leaders in private equity throughout 2018. We are hopeful that this series will serve to inspire other women to pursue their careers in private equity in a way that best challenges and motivates them, which these impressive women have all done. This month, we are pleased to feature Katie Noggle of Align Capital Partners. Access her profile by clicking here.

To recommend a woman for a future interview, email Amber Walsh at awalsh@mcguirewoods.com.

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