Although investment in the orthopedic sector is not new, private equity investment interest in this specialty area continues to grow. In fact, orthopedics has become one of the leading sectors for private equity investing, just behind cardiology.

In this episode of The Corner Series, McGuireWoods partner Geoff Cockrell speaks with Scott Davis, managing director at Provident Healthcare Partners, one of the leading investment banks providing M&A advisory services, strategic planning and capital formation to owners and operators of healthcare services businesses. Geoff and Scott focus their discussion on the highly active and evolving orthopedics sector.

Tune in to hear Scott share his insights into the state of the orthopedic industry and the leading drivers that make it so appealing to investors.

H.I.G. Capital has agreed to acquire the spine business of ZimVie (Nasdaq: ZIMV) for $375 million, according to a news release.

H.I.G. will acquire Zimvie’s spine, motion preservation and EBI bone healing technologies.

ZimVie was formed less than two years ago when Zimmer Biomet spun out its dental and spine segments. Following the sale, ZimVie will focus solely on its dental business.

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

The transaction is expected to close in the first half of 2024.

Some private equity groups buy assets just to pull them apart and sell them in pieces, but that is the exception, not the norm. In fact, private equity has done a lot to build and improve businesses, especially small and medium-sized ones.

In this episode of The Corner Series, McGuireWoods partner Geoff Cockrell speaks with Edward Crawford, co-founder and co-CEO of Coltala, a Dallas-Fort Worth-based venture capital and private equity firm that employs a “mission” investment style. Geoff and Edward discuss Coltala’s unique investment style, the ethos that drives the firm’s investment strategy and the misconception about private equity.

Tune in to learn more about Coltala’s partnership culture, the mission and margin investment strategy that serves as a filter to screen out certain companies, the test used to evaluate potential deals, and why Edward has walked away from opportunities that otherwise looked great financially.

Gryphon Investors has announced it has sold Potter Global Technologies to investment funds managed by KKR.

Potter, based in St. Louis, Mo., is global provider of fire safety and emergency communication products. Started in 1898, Potter serves customers in healthcare and several other markets.

Gryphon, based in San Francisco, focuses on middle market companies in healthcare and other industries. Founded in 1997, the firm pursues control equity investments and prefers to make more substantial investments from a dollars perspective. Within healthcare, Gryphon targets the provider services, hospital/major facilities and non-reimbursement industries.

KKR is a global investment firm.

Terms of the transaction were not disclosed.

Gemspring Capital has announced it has sold Valant Medical Solutions to an affiliate of Resurgens Technology Partners.

Valant, founded in 2005 and based in Seattle, is provider of SaaS-based electronic health record and practice management software for behavioral health providers.

Gemspring, based in Westport, Conn., is a middle market private equity firm that invests in healthcare services and several other sectors. Founded in 2015, the firm targets companies with up to $500 million in revenue.

Resurgens, based in Atlanta, is private equity firm focused on investing in North American and select European lower middle market businesses with a focus on enterprise software. 

Terms of the transaction were not disclosed.

As the fee-for-service model in U.S. healthcare grows increasingly unpopular, shifting to a value-based care paradigm can move the healthcare system toward better outcomes, lower costs, better patient access and experiences — and greater investment opportunities.

In this episode of The Corner Series, McGuireWoods’ Geoff Cockrell is joined by Andrew Clark, managing partner at Leavitt Equity Partners, to discuss investment opportunities in value-based care. Tune in to hear Geoff and Andrew explore the evolution of value-based care and how it will continue to shape the healthcare industry. They discuss the different sectors that lend themselves to value-based care investment, including primary care, chronic care, episodic care and women’s care.

They also address the disruptive potential of non-healthcare participants, payer and provider convergence, and the role of artificial intelligence in driving efficiency and improving patient care.

New State Capital Partners has announced it has acquired Agility Recovery Services.

Agility, based in Atlanta, is a provider of business continuity and disaster recovery services for healthcare organizations and customers in other sectors. Founded in 1989, Agility’s subscription-based services include access to backup power, temporary office space, network connectivity, and backup technology and equipment.

New State, based in Larchmont, N.Y., invests in middle market companies. Founded in 2013, the firm typically invests $10 million to $100 million in equity in companies with EBITDA from $8 million to $40 million. 

Terms of the acquisition were not disclosed.

By Jeffrey D. Brooker, J.D. Costa, Jon W. Finger, Richard S. Grant and Gregory P. Hawver

McGuireWoods’ Independent Sponsor Conference in Dallas drew more than 1,500 independent sponsors and capital providers from 47 states and the District of Columbia and eight countries. Attendees gathered to network, learn and share insights.

Read on for key takeaways from the conference regarding industry trends and best practices for sourcing, structuring, financing and executing independent sponsor transactions.