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The Healthcare Investor

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

Up-and-Coming Women in PE to Know: Molly Williams Martin

Posted in Healthcare Services Investing

McGuireWoods is undertaking a yearlong effort to profile up-and-coming women leaders in private equity. This profile series complements our existing Women Leaders in Private Equity profile series, which will continue throughout 2019. For this profile, we are pleased to feature Molly Williams Martin, a vice president with Silver Oak Services Partners. Access her profile.

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

A View From the Top: Scotte Hudsmith of Smile Doctors

Posted in Healthcare Services Investing

Please see below for the second installment of our interview series, A View From the Top. This series features interviews with C-suite leadership of private equity-backed portfolio companies. This installment features Scotte Hudsmith, CEO of Smile Doctors.  The first installment, featuring Bill Southwick of QualDerm is available here. To recommend a leader for a future interview, email Holly Buckley at hbuckley@mcguirewoods.com.

As a reminder, our 17th annual Healthcare and Life Sciences Private Equity and Finance Conference is February 19 and 20 in Chicago. The save the date is available here. Please contact us for more information or to indicate an interest in participating on a panel.

Q: How closely are you involved with the business development/prospecting aspect of your platform?

Scotte Hudsmith: I am heavily involved in the business development process. Partially because I am passionate about growing but mostly because of our foundation and need for people to “fit” in our culture and for our culture to be a fit for those affiliating with us.

Smile Doctors is an organization that is driven by both organic and affiliation growth. We have built its foundation based on adding team members who have the right fit, skills and talent to succeed in our world. Our business development team does an excellent job of finding doctors who are the right fit to affiliate with us. We know that those affiliating with us possess the skills and talent as they have already built successful practices. I visit many of these doctors pre-affiliation to explain Smile Doctors’ success and the “why” behind our focus on fit and how this focus helps us create long-term value for our stakeholders.

Q: What do you believe is the most important personality trait in a business development leader?

SH: Tenacity followed by patience as a close second. Our business development team works with doctors who have spent many years of their life completing very expensive educations. Then they start or buy a practice and build an awesome reputation in their respective markets. Our business development team has to be able to walk through all of the reputation fears that may come from their peers or communities, explain the financial differences of our model versus the one they built and help them navigate the pre- and post-affiliation change cycles.

Q: How do you ensure the platform’s organizational culture is appropriately conveyed to potential targets?

SH: We live our culture every day, and each member of our team knows it so well that conveying it happens naturally. It is contagious. We like to say it is something that is caught, not taught.

Q: What is the toughest lesson you have learned with respect to business development?

SH: It is impossible to get into someone’s mind in a diligence process if they have alternative motives. You can find diligence information in the data and pick up on other behaviors along the way. However, if someone is telling you one thing and planning on another, it’s tough to uncover. An example is a doctor saying, “I want to stay and be a part of the team,” but they really are planning to check out and retire early and see you as the best exit. That is hard to uncover. We have had a few of these events and it’s tough on everyone, especially their former and post-affiliation team. We now have some ways to uncover these behaviors thanks to a great advisor.

Q: Can you share an inspiring business development success story?

SH: We have had a few doctors who were burned out and ready to retire when they affiliated with us. But once they joined our team, realized there is an easier way to practice with businesspeople handling the business side and discovered that they get to do what they love on the clinical side, it is a life-changing experience. Many of these individuals have now signed long-term employment agreements with the practices we support and have become some of the patients’ favorites. I was recently told by one doctor that they have changed more lives in their last few years affiliating with us than they ever did as a private practice owner because they have the time to really engage at a patient and team level.

About Scotte Hudsmith

Scotte Hudsmith serves as the chief executive officer (CEO) of Smile Doctors. He oversees the executive leadership team working to expand the company’s orthodontics experience across the United States. Since Hudsmith joined in 2014, Smile Doctors has grown from two Austin-area locations to nearly 200 locations in 16 states.

Hudsmith has more than 25 years of corporate leadership experience, including executive roles in finance, operations, business development and sales and marketing. He specializes in developing and implementing growth strategies in healthcare companies that are private equity-backed and has extensive experience coordinating mergers and acquisitions. Prior to joining Smile Doctors, he was CEO of Parental Health, a company he founded in 2009. He also previously served as executive vice president of finance and business development for Passport Health Communications, (now part of Experian Health).

In addition to his work at Smile Doctors, Hudsmith serves on the board and executive committee of the Association of Dental Support Organizations.

To contact Scotte Hudsmith, email scotte.hudsmith@smiledoctors.com.

Varsity Healthcare Partners Closes Third Fund With $417 Million

Posted in Healthcare Services Investing

Varsity Healthcare Partners (VHP) has announced the closing of its third private equity fund, VHP III, at $417 million.

VHP, with offices in Los Angeles and Stamford, Conn., is a lower-middle-market private equity firm focused on healthcare services. Founded in 2014, VHP aims to commit equity investments ranging from $20 million to $60 million.

With the closing of its third fund, total capital raised by VHP is approximately $816 million.

Up-and-Coming Women in PE to Know: Renny Sie

Posted in Healthcare Services Investing

McGuireWoods is undertaking a yearlong effort to profile up-and-coming women leaders in private equity. This profile series complements our existing Women Leaders in Private Equity profile series, which will continue throughout 2019. For this profile, we are pleased to feature Renny Sie, a vice president of business development and investor relations at Boyne Capital. Access her profile.

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

Healthcare & Life Sciences Private Equity Deal Tracker: Council Capital Sells Stake in EspriGas

Posted in Healthcare Services Investing

Council Capital has announced it has sold its stake in EspriGas to an entity affiliated with Kaltroco.

EspriGas, based in Atlanta, is a medical and industrial gas company.

Council Capital, based in Nashville, Tenn., is a healthcare-focused private equity firm. Council seems to make control and minority investments in lower-middle-market companies with enterprise values between $10 million and $50 million.

Kaltroco is a private investment company with operations in United States and Europe.

Terms of the transaction were not disclosed.

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Healthcare & Life Sciences Private Equity Deal Tracker: CapStreet Recaps Surgical Notes

Posted in Healthcare Services Investing

The CapStreet Group has announced it has completed a majority recapitalization of Surgical Notes.

Surgical Notes, headquartered in Dallas, is a healthcare technology company that develops and provides revenue cycle products and services for the ambulatory surgery center industry.

CapStreet, based in Houston, is private equity firm that invests in owner-managed, lower-middle-market companies. The firm seeks investments in the value-added distribution, industrial services and manufacturing, and business-to-business service sectors.

Terms of the recapitalization were not disclosed.

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Up-and-Coming Women in PE to Know: Meahgan O’Grady

Posted in Healthcare Services Investing

McGuireWoods is undertaking a yearlong effort to profile up-and-coming women leaders in private equity. This profile series complements our existing Women Leaders in Private Equity profile series, which will continue throughout 2019. For this profile, we are pleased to feature Meahgan O’Grady, head of origination at Long Point Capital. Access her profile.

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

Women in PE to Know: Anne Marie DeMent

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 continuing our series of profiling women leaders in private equity. 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. We are pleased to feature Anne Marie DeMent of Excelsior Energy Capital. Access her profile by clicking here.

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

DW Healthcare Partners Closes Fifth Fund at $610 Million

Posted in Healthcare Services Investing

DW Healthcare Partners has announced it has closed its fifth fund with $610 million in commitments.

DW Healthcare Partners, with its U.S. office in Park City, Utah, is a private equity firm focused exclusively on healthcare. Founded in 2002, DW Healthcare Partners primarily pursues control investments in North American, middle-market companies.

The firm noted that its newest fund — DW Healthcare Partners V (Fund V) — was oversubscribed.

The fund brings DW Healthcare Partners’ total capital under management to more than $1.4 billion.

Up-and-Coming Women in PE to Know: Emily Castle

Posted in Healthcare Services Investing

McGuireWoods is undertaking a yearlong effort to profile up-and-coming women leaders in private equity. This profile series complements our existing Women Leaders in Private Equity profile series, which will continue throughout 2019. For this profile, we are pleased to feature Emily Castle, an associate at Audax Private Equity. Access her profile.

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

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