Trilantic North America announced it will make a growth investment in SOFIE Biosciences. 

SOFIE, founded in 2008 and based in Dulles, Virginia, is a radiopharmacy and contract development and manufacturing organization.

Trilantic Capital Management (Trilantic North America), founded in 2009 and based in New York, is a growth-focused middle market private equity firm that pursues control and significant minority investments in North America. The firm’s primary investment focuses are the business services and consumer sectors. 

Terms of the investment were not disclosed.

FFL Partners has announced an investment in Apex Infusion.

Apex, founded in 2006 and based in Signal Hill, California, is a provider of ambulatory infusion therapy services.

FFL, based in San Francisco, invests in middle market companies within healthcare and business services. Founded in 1997, the firm generally commits $50 million to $200 million to individual transactions and purses control and minority stake transactions.

Terms of the investment were not disclosed.

Tenex Capital Management has acquired Behavioral Innovations (BI) from Shore Capital Partners, according to a news release.

BI, founded in 2000 and based in Dallas, is provider of center-based applied behavior analysis therapy to early intervention children with autism spectrum disorder and other related developmental disabilities. BI operates nearly 80 centers across Texas, Oklahoma and Colorado.

Tenex, founded in 1999 and based in New York, is a private equity firm that invests in middle market companies within healthcare and a few other industries. The firm seeks majority investments in companies with EBITDA between $3 million and $40 million.

Shore Capital Partners, based in Chicago, pursues healthcare investments in the lower middle market. Founded in 2009, the firm pursues control equity investments in the healthcare services, products and distribution markets through a range of investment amounts. Within healthcare, Shore seeks to invest in the provider services and non-reimbursement industries.

Terms of the transaction were not disclosed.

Council Capital has announced an investment in Allegiant Managed Care.

Allegiant, founded in 1992 and based in Pittsburgh, Pennsylvania, provides vocational and nurse case management services to insurance carriers and third-party administrators across 20 states east of the Mississippi. 

Council Capital, based in Nashville, Tennessee, focuses exclusively on lower middle market healthcare companies. Founded in 2000, the firm pursues majority and minority investments in companies with revenues generally between $5 million and $50 million.

Terms of the investment were not disclosed.

Private equity investment in the medical environment is nothing new. But what investment considerations and challenges are specific to pediatric practices?

In this episode of The Corner Series, McGuireWoods’ Geoff Cockrell is joined by Tucker Moore and Chris O’Dekirk of Concierge Capital Advisory to discuss trends and issues related to private equity involvement in pediatric practices. Tucker and Chris discuss how the retail-heavy aspects of pediatrics can be attractive to investors, how consolidation can increase the quality of care provided, and how incentive programs may mean pediatric offices have higher revenue.

By Megan Italiano

Successful integration is key in order to maintain value in healthcare investments, according to experts who spoke on a panel at the 20th Annual Healthcare and Life Sciences Private Equity & Finance Conference in Chicago on May 8th and 9th.  Because healthcare service businesses are driven by people, a clear, communicated integration plan is essential to establishing trust amongst providers and making providers feel supported post-transaction.

Experts included Andrew Clark, Managing Partner at Leavitt Equity Partners; Dan Iantomo, Managing Partner and Chief Information Officer at Clear Harbor Advisors; Erik Miller, President and General Manager at MedHQ; Ann Sariego, Market President at SCA Health; and Emily Hak, Managing Director of Private Capital Markets at Insperity.

Here are four key points from their discussion:

  1. Integration begins with diligence.  In order to have a successful integration of a healthcare business following a transaction’s closing, an investor must understand its target and develop a unique plan specific to that target’s needs and expectations.  Investors should utilize the diligence process to gain a better understanding of a practice’s historic compliance policies, physician compensation, billing and coding practices, and other pre-closing operations.  Do not just leave diligence to the attorneys, who may not be part of your integration planning.  Conducting thorough due diligence on a healthcare business and understanding its historical operations prior to a closing will streamline the integration process post-closing.
  • Ensure post-closing expectations are aligned.  During the deal process, it is imperative to align the deal teams with the buyer’s integration teams to ensure a seller’s providers and employees are hearing consistent expectations for operations post-closing.  It can create an immediate lack of trust among providers and employees if the deal teams they were working with pre-closing provide them unrealistic or problematic information for post-closing integration and operations.
  • Planning and flexibility are equally important.  Investors should consider the successes and failures of post-closing integration from prior acquisitions in order to develop an integration plan in subsequent deals.  While the plan should implement repeatable processes and standardization, where possible, the plan must also be flexible enough to allow for the many unique circumstances of each target.  Integration teams should ensure that they understand and follow the developed integration plans, but should also be able to pivot or change course as necessary or as favorable for post-closing operations.  
  • Establish a Regular Cadence of Communication.  Healthcare acquisitions often result in major changes post-closing for the target company, and with change comes a great deal of uncertainty.  To minimize uncertainty and increase trust, integration teams should focus on frequent clear communications.  Integration teams should consider establishing physician advisory boards, town hall meetings, or other methods of encouraging frequent communication in order to develop regular communication with providers, employees or other individuals involved in the business.  Beginning these conversations during deal negotiations may assist in building trust by introducing the wider team.

The HCPE Conference continues to deliver as one of the best networking conferences of its kind for those investing in healthcare companies or healthcare companies receiving capital from private equity and finance.  The deep-dive, extensive discussions into various sectors (as well as the industry and deal-making generally) generated thought-provoking discussions across the board.  Click here for additional insights from those discussions and the 20th HCPE Conference as a whole.  Thanks to everyone who attended the 20th HCPE Conference — McGuireWoods looks forward to continuing the dialogue.

TA Associates has made a growth investment in Solarity, according to a news release.

Solarity, based in St. Louis, Missouri, is a provider of clinical data processing solutions for acute and ambulatory healthcare providers.

TA, founded in 1968 and based in Boston, considers a range of investment types, from minority to majority investments. The firm invests in healthcare and several other sectors.

Terms of the investment were not disclosed.

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 Sarah Whitney of Align Capital Partners. Access her profile.

To recommend a woman for a future interview, email WPEF@mcguirewoods.com.

GTCR will acquire Surmodics for approximately $627 million and then take the company private, according to a news release.

Surmodics (Nasdaq: SRDX), founded in 1979 and based in Eden Prairie, Minnesota, is a provider of medical device and in vitro diagnostic technologies.

GTCR, based in Chicago, pursues a wide range of investments in several industries, including healthcare. Founded in 1980, the firm prefers to make more substantial investments from a dollars perspective.

The acquisition is expected to close in the second half of 2024.

While the dental practice market is one of the most mature healthcare markets, it also is highly fragmented. That fragmentation means opportunities vary at every valuation level.

In this episode of The Corner Series, McGuireWoods’ Geoff Cockrell is joined by Kevin Cumbus, founding partner and president at TUSK Practice Sales. Tune in as Geoff and Kevin delve into the current dental market from an investment and practice sale perspective, including where strategic buyers are focused, where the buyer market opens up, as well as some of the pressures faced by dental practices. They also address the impact of the FTC’s recent non-compete rule on the healthcare market, and tools to maximize equity alignment at every level.