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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: Warburg Pincus and Great Hill Partners Invest in Quantum Health

Posted in Healthcare Services Investing

Warburg Pincus and Great Hill Partners have completed a growth investment in Quantum Health, according to a news release.

Quantum Health, based in Columns, Ohio, is a consumer healthcare navigation and care coordination company. Founded in 1999, the company states that its Real-Time Intercept model is designed to identify opportunities for early intervention in an employee’s healthcare journey.

Warburg Pincus, based in New York, is a global private equity firm focused on growth investing. Founded in 1966, the firm takes a long-term perspective and invests in businesses at all stages of development within healthcare and several other sectors.

Great Hill Partners, based in Boston, seeks to invest in middle market companies in several sectors, including healthcare technology. Founded in 1998, the firm typically invests $25 million to $200 million in equity in each investment, targeting companies with an enterprise value of $25 million to $500 million.

Great Hill previously invested in Quantum Health in 2017 and is the company’s current majority shareholder. The firm retains a significant stake in Quantum Health following the growth investment.

The news release indicates that the investment would go toward accelerating Quantum Health’s investment in its technology platform and service delivery capabilities.

Terms of the transaction were not disclosed.

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A View From the Top: Lauren Sclesky of VersiCare Group

Posted in Healthcare Services Investing

Please see below for the latest 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 Lauren Sclesky of VersiCare Group. To recommend a leader for a future interview, email Holly Buckley at hbuckley@mcguirewoods.com.

Q: What advice would you give to a founder CEO when evaluating potential partners?

Lauren Sclesky: Invest the time to evaluate whether you share the same vision and your core values and principles are mutually aligned. The foundation of an organization is built on core principles. Identifying a partner that has similar core principals is a precursor to building a healthy and thriving organization.

Business challenges are inevitable. A cohesive partnership will foster collaboration and trust in times of uncertainty and result in stronger outcomes. Included in this are the open conversations I would ensure you have about strategic goals, including liquidity expectations.

Q: What was the best advice you ever received about running a business successfully and who did it come from?

LS: The best advice I received about running a business was from my mentor and former partner. Early in my career, he suggested I join a leadership and peer advisory group with other business leaders and engage with a business coach to help improve performance and execution. I have been involved with several groups throughout my career and gained tremendous value from other leaders as we often faced similar challenges in our roles. I received candid advice and perspective that helped me identify and address my blind spots and supported my development as a business leader in an evolving organization. An abundance of the wisdom and business practices I use in my role today came from peer advisory groups.

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

LS: At VersiCare, we are passionate about our culture. It is what sets us apart from our competition. Our discussions with potential targets start with us conveying our core purpose of “helping people succeed.” It is truly at the heart of everything we do.

VersiCare is a value-driven organization that has provided care for more than 20 years. This message is communicated throughout our discussions that tie back to our execution and vision strategy that focuses on accountability, alignment and results, with an emphasis on people. Our core ideologies and organizational culture are prevalent in many discussions, and our actions are aligned with our values throughout the diligence process.

It is equally important for us to identify strategic partnerships that have a foundation similar to our organizational values. To that point, we have stepped away from potential targets that, while having a strong business model, did not align with our organizational culture.

Q: What plans do you have to further grow your business internally and what will be necessary to implement these plans?

LS: VersiCare has positive brand momentum and continues to build a best-in-class platform despite challenges associated with COVID-19. We have engaged with various prospects and plan to complete several new partnerships in 2020. At the same time, we have onboarded several new team members despite working in a largely remote environment.

VersiCare’s strategic plan is to be a top provider of home- and community-based care in the central and southern United States through acquisitions and strategic partnerships. An essential strategic component is to find like-minded companies that share our vision. We can provide a unique and tailored solution to smaller agencies that have hit a growth peak and need capital and infrastructure to build their business.

VersiCare leads growth and expansion with our aforementioned core purpose of helping people succeed. We are recognized as one of Detroit’s “Best and Brightest Companies to Work For” over the past 12 years. Preserving the foundation of VersiCare’s culture is top of mind as we build out our footprint. We place significant value on company culture and believe it is an instrumental factor in the success of the organization.

Our key initiatives are focused on building an evolving infrastructure and scaling systems and resources to support growth. As our infrastructure has scaled, we are better positioned to offer existing clients new and expanded service offerings while providing best-in-class options for our employees.

Furthermore, the leadership team has developed an integration team to ensure seamless transitions with a tailored playbook that has a standard onboarding process that includes the roles and responsibilities for all functions. We approach each integration with communication and transparency, leading with a company kickoff meeting to infuse excitement and engage the team in the transition and the opportunities ahead.

We believe that by making sound investments in the VersiCare platform today, we are positioned to execute our organic and inorganic growth plans for years to come.

About Lauren Sclesky

Lauren Sclesky joined what is now  in 1996 as a staffing consultant and held multiple positions within the company, including branch manager, operations manager, vice president of operations and chief operations officer. Sclesky was named CEO in 2008. She created VersiCare Group through a management-led buyout of its predecessor company.

Prior to VersiCare, Sclesky built a best-in-class platform by developing strategies that supported long-term and short-term goals, assembling a cohesive team and positioning the company to raise outside capital. Since the creation of VersiCare Group, she has led a multistate expansion, expansion of her executive team, de novo growth, payor growth, a spin-out of a non-key division and inorganic growth.

Sclesky is a member of the Macomb County Provider Alliance (MCPA) and sits on its board as secretary. The goal of MCPA is to improve conditions as they relate to providing support to persons with disabilities. Sclesky is a continuous advocate for consumers’ rights and maintains an integral role and responsibility in promoting the significant duty that caregivers assume in the success of the community mental health system. Her advocacy includes educating the Michigan Department of Health and Human Services and local legislators on the financial supports needed to deliver successful programs and outcomes.

Sclesky enjoys and excels at coaching and training initiatives for new employees and customers on various human resource and professional business topics, including effective interviewing, emotional intelligence and conflict management. She earned an associate’s degree in advertising and a B.S. in business management, both from Northwood University.

To contact Lauren Sclesky, email lsclesky@versicaregroup.com.

Women in PE to Know: Beth Rahn

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 Beth Rahn of McNally Capital. 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: DW Healthcare Partners Invests in CareXM

Posted in Healthcare Services Investing

DW Healthcare Partners (DWHP) has announced it has invested in CareXM.

CareXM, based in Lehi, Utah, is a provider of virtual care and patient engagement solutions for post-acute and non-acute healthcare providers.

DWHP, with its U.S. office in Park City, Utah, is a healthcare-focused private equity firm. Founded in 2002, the firm prefers to make shareholder liquidity, management buyout and growth capital investments in mid-to-late-stage companies.

Terms of the investment were not disclosed.

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Healthcare & Life Sciences Private Equity Deal Tracker: Varsity Healthcare Partners Invests in Partners First Cardiology

Posted in Healthcare Services Investing

Varsity Healthcare Partners (VHP) has announced it has completed a growth equity investment in Partners First Cardiology.

Partners First Cardiology, based in Austin, Texas, is a cardiology and cardiovascular physician practice management company.

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.

Terms of the investment were not disclosed.

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Healthcare & Life Sciences Private Equity Deal Tracker: H.I.G. Capital to Acquire St. Croix Hospice

Posted in Healthcare Services Investing

H.I.G. Capital has announced it will acquire St. Croix Hospice.

St. Croix, based in Oakdale, Minn., is a provider of hospice services across the midwestern United States. Founded in 2008, the company delivers hospice and a broader network of concurrent comfort and support services tailored to patients’ and their family’s individual needs and circumstances.

H.I.G., based in Miami, is a global private equity and alternative assets investment. Founded in 1993, the firm pursues a wide range of investments in healthcare and many other industries. H.I.G. has flexibility on investment size, including interest in pre-EBITDA businesses. Within healthcare, H.I.G. targets companies in the provider services, hospital/major facilities and life sciences/pharmaceutical industries.

Terms of the acquisition were not disclosed.

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Petrichor Closes Fund With $410 Million

Posted in Healthcare Services Investing

Petrichor Healthcare Capital Management has announced it has closed Petrichor Opportunities Fund I.

The firm reported that the new fund was oversubscribed with $410 million in commitments.

Petrichor, based in New York, is a healthcare-focused private equity firm that makes structured investments. Founded in 2017, the firm invests in private and public companies primarily in biopharmaceuticals, medical technology and diagnostics that are seeking growth capital.

Investment sizes range from $10 million to $50 million, with Petrichor able to commit larger amounts through limited partner co-investments.

Healthcare & Life Sciences Private Equity Deal Tracker: Frazier Healthcare Partners Acquires Accuity Delivery Systems

Posted in Healthcare Services Investing

Frazier Healthcare Partners has announced it has acquired Accuity Delivery Systems.

Accuity, based in New York, is a provider of technology-enabled revenue integrity and clinical documentation improvement services for hospitals and health systems.

Frazier Healthcare Partners, based in Seattle, is a provider of private equity capital to healthcare companies. The firm, founded in 1991, prefers to make more substantial investments from a dollars perspective and pursues a wide range of investment types, including company creation and venture capital to buyouts of profitable lower-middle market companies.

Terms of the acquisition were not disclosed.

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Healthcare & Life Sciences Private Equity Deal Tracker: Linden Capital Partners Makes Majority Investment in Vital Care

Posted in Healthcare Services Investing

Linden Capital Partners has announced it has made a majority investment in Vital Care.

Vital Care, based in Meridian, Miss., is a pharmacy franchise business for home infusion services. Founded in 1986, the company has more than 60 franchised pharmacies across two dozen states.

Linden Capital Partners, based in Chicago, is a private equity firm focused exclusively on the healthcare industry. Founded in 2004, the firm pursues acquisition opportunities across the healthcare industry, including services, products and distribution companies, and prefers to make more substantial investments from a dollars perspective.

Terms of the investment were not disclosed.

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Healthcare & Life Sciences Private Equity Deal Tracker: Lion Equity Acquires T-Y Group and Harbor Linen

Posted in Healthcare Services Investing

Lion Equity Partners has announced its affiliate, Lion Equity Holdings II, has acquired T-Y Group and Harbor Linen (TY-Harbor) from Bed Bath & Beyond.

TY-Harbor, with offices in Miami and Marlton, N.J., distributes linens, terry, amenities, case goods and apparel to businesses in the healthcare and global hospitality industries. On its website, TY-Harbor identifies Harbor Linen as the “healthcare side” of the company, noting it offers patient apparel, incontinence pads, bedding, cubicle curtains, clothing protectors and more.

Lion Equity, based in Denver, is a private equity firm focused on acquiring middle market companies across a variety of industries, including healthcare. The firm pursues corporate carve-outs and special situations as well as businesses experiencing financial, operational or industry-driven challenges with revenues between $20 and $150 million. Typical transaction values are up to $50 million.

The terms of Lion Equity’s acquisition of TY-Harbor were not disclosed.

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