Pharos Capital Group announced it has acquired Behavior Care Specialists.

Behavior Care Specialists, based in Sioux Falls, S.D., is an outpatient treatment provider of autism spectrum disorder services in four states: South Dakota, Iowa, Minnesota and Wyoming.

Pharos Capital, with offices in Dallas and Nashville, considers a variety of investments in lower- and middle-market companies primarily in healthcare and business services.

The acquisition was completed through Pharos Capital’s Family Treatment Network platform, which manage the firm’s investments in special schools, psychiatric residential treatment centers and community-based programs for children, adolescents and their families.

Terms of the transaction were not disclosed.

Registration is now open for the McGuireWoods & RSM US 15th Annual Healthcare and Life Sciences Private Equity and Finance Conference, which will take place February 21–22. The conference is once again being held at The Ritz-Carlton in Chicago.

Over the last few years, we’ve had more than 500 attendees, most of which are private equity sponsors, healthcare and life sciences operators, lenders and some vendors. Additional information and the registration form is available at our conference website at www.healthcareprivateequity.com.

This year, we have sponsorships from:

If readers are interested in attending, please contact Amber Walsh at awalsh@mcguirewoods.com for a registration discount.

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 kicking off a year-long effort 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 kick off the series with Lorine Pendleton of TIGER 21 and Portfolia Funds. Access her profile by clicking here.

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

LightBay Capital has announced it has raised $615 for its inaugural private equity fund.

The fund, LightBay Investment Partners LP, exceeded its target of $450 million.

LightBay, based in Los Angeles, is led by cofounders Nav Rahemtulla and Adam Stein, original members of Ares Management’s private equity group. The firm takes a flexible capital approach to investing in middle-market companies.

LightBay targets investments between $25 million and $150 million in the healthcare, consumer and business services sectors.

NovaQuest Capital Management has agreed to acquire Viamet Pharmaceuticals, according to a news release.

Viamet, based in Durham, N.C., is a biopharmaceutical company focused on the discovery, development and commercialization of antifungal agents based on its proprietary metalloenzyme medicinal chemistry platform.

NovaQuest Capital Management, based in Raleigh, N.C., is private equity and venture capital firm focused on investing in life sciences and healthcare through its NovaQuest Biopharma and NovaQuest Private Equity platforms. NovaQuest Private Equity targets companies in the middle market.

Financial terms were not disclosed.

In 2016, overall national health spending increased 4.3% following 5.8% growth in 2015, according to a study by the Office of the Actuary at CMS published as a Web First by Health Affairs.

Following the ACA coverage expansion and significant retail prescription drug spending growth in 2014 and 2015, health care spending growth decelerated in 2016. The report concludes that the 2016 expenditure slowdown was broadly based as growth for all major payers (private health insurance, Medicare and Medicaid) and goods and services categories (hospitals, physician and clinical services, and retail prescription drugs) slowed in 2016. During 2014 and 2015, the health spending share of the economy increased by 0.5 percentage points from 17.2% in 2013 to 17.7% in 2015.

The increases in the health spending share of the economy in 2014 and 2015 were largely due to coverage expansion that contributed to 8.7 million individuals’ gaining private health insurance coverage and 10.2 million gaining Medicaid coverage over the period and to significant growth in retail prescription drug spending. Health care spending grew 1.5 percentage points faster than the overall economy in 2016, resulting in a 0.2 percentage-point increase in the health spending share of the economy – from 17.7% in 2015 to 17.9% in 2016.

Since the publication of the list below, we have seen more PE investors turn toward healthcare investments, new healthcare-focused funds form and healthcare PE deal activity continue at a staggering pace. Thus, we have decided to launch the Leading Private Equity Investors in Healthcare website. Please check it out!

In 2016, we published a four-part series (access part one, part two, part three and part four) highlighting some of the more active private equity investors in the healthcare and life science space. Throughout 2017, we continued to see even more PE investors turn toward healthcare investments, new healthcare-focused funds form, and healthcare PE deal activity continue at an aggressive pace. Thus, we’ve decided that publishing an unexpected Part V to the series was necessary, and we anticipate an additional Part VI to be published in early 2018. These investors are primarily funds that focus largely on growth-stage, buyout and platform funding transactions, and the sheer number of investors is a real testament to investors’ views of healthcare as a solid investment play. Note: The investors discussed in this Part V and in prior and subsequent parts of this series are listed in no particular order. To recommend a firm to be profiled in a future column or request a change to a profile, please email awalsh@mcguirewoods.com or fill out the form here.

Amerigo Capital — Founded in 2015, Amerigo seeks to make control investments in lower middle-market companies. The firm, based in Irvine, Calif., targets companies with EBITDA from $2 million to $20 million across a variety of industries, including biotech, pharmaceutical and healthcare IT. More information about Amerigo is available at www.amerigocap.com.

Industrial Innovation Partners ­­— Industrial Innovation Partners focuses on acquiring and growing small- to middle-market companies. The firm, based in Northbrook, Ill., targets companies in several sectors, including healthcare. In its portfolio is Deerfield Dermatology Associates, a provider of dermatological medical and cosmetic services. More information about Industrial Innovation Partners ­­is available at www.iipequity.com.

New State Capital Partners — Founded in 2013, New State invests in middle-market companies with EBITDA from $8 million to $25 million. The firm, based in Larchmont, N.Y., typically invests $10 million to $45 million in equity in companies serving healthcare and other industries. Companies in its portfolio include United Medical Systems, a provider of mobile medical services to hospitals, surgery centers and offices; New Vista Behavioral Health, which offers subacute-detox, residential, partial hospitalization, intensive outpatient and outpatient treatment services in several California facilities; and Capitol Pain Institute, a provider of pain management services to the greater Austin, Texas, area. More information about New State is available at www.newstatecp.com.

Warburg Pincus — Founded in 1966, Warburg Pincus is focused on growth investing. The firm, based in New York, takes a long-term perspective and invests in businesses at all stages of development within healthcare and several other sectors. Recent healthcare investments include CityMD, an urgent care provider with locations in the greater New York metropolitan area and Seattle; Alignment Healthcare, a health delivery company focused on seniors; and Intelligent Medical Objects, a developer of a medical terminology solution for the management of medical vocabularies and software applications at healthcare organizations. More information about Warburg Pincus is available at www.warburgpincus.com.

ABS Capital Partners — Founded in 1990, ABS invests in late-stage growth companies. Based in Baltimore, the firm targets companies in healthcare as well as business and tech-enabled services. Companies in its current portfolio include LabConnect, a provider of central laboratory and support services to biopharmaceutical, medical device and contract research organizations; ConnectYourCare, a consumer-directed healthcare account administrator; and Bravo Wellness, a corporate wellness provider. More information about ABS is available at www.abscapital.com.

Rockwood Equity Partners — Founded in 1999, Rockwood invests in lower middle-market companies with revenues typically between $10 million and $75 million or $2 million to $7 million EBITDA. Based in Cleveland, the firm targets companies in healthcare and a few other sectors. Within healthcare, the firm prefers control investments through buyouts, recapitalizations and partnership investments. Companies in its current portfolio include Altimate Medical, a manufacturer of standing solutions to support therapy for adults and children with disabilities, and Medical Positioning, a manufacturer of specialty beds and tables for diagnostic imaging procedures in cardiology, radiology, mammography and interventional procedures. More information about Rockwood is available at www.rockwoodequity.com.

DW Healthcare Partners — Founded in 2002, DW Healthcare prefers to make shareholder liquidity, management buyout and growth capital investments in mid-to-late-stage companies. With its U.S. office in Park City, Utah, the firm is focused exclusively on the healthcare industry. Companies in its current portfolio include Z-Medica, a manufacturer and marketer of hemostatic products; Champion Manufacturing, a manufacturer of patient seating solutions for a variety of healthcare environments; and PRIME Education, a provider of continuing medical education for the interprofessional healthcare team. More information about DW Healthcare is available at www.dwhp.com.

Harvest Partners — Founded in 1981, Harvest focuses on management buyouts and recapitalizations of middle-market companies. Based in New York, the firm targets companies in healthcare and a few other industries. Companies in its current portfolio include Advanced Dermatology & Cosmetic Surgery, a dermatology practice with more than 150 locations across; Dental Care Alliance, a dental support organization with a network of about 250 practices; and EyeCare Services Partners, a vertically integrated ophthalmologic services platform with more than 50 locations. More information about Harvest is available at www.harvestpartners.com.

Varsity Healthcare Partners — Founded in 2012, Varsity Healthcare seeks primarily control investments — growth equity to buyout/recapitalization — in lower middle-market companies. The firm, with offices in Los Angeles and Stamford, Conn., focuses exclusively on healthcare services, principally providers, payors and outsourced services, with an emphasis on multi-site providers, including physician practice management. Varsity Healthcare typically invests $10 million to $60 million, going larger with co-investment partners. The companies in its current portfolio are Family Care Partners, a consolidator of primary care and ancillary diagnostic patient services, and The Orthopaedic Institute, a private practice group of specialty physicians providing musculoskeletal care. More information about Varsity Healthcare is available at www.varsityhealthcarepartners.com.

Great Point Partners — Founded in 2003, Great Point invests from $7 million to $25 million, exceeding $40 million when co-investing. Based in Greenwich, Conn., the firm invests exclusively in healthcare companies in the United States, Canada and Western Europe. Companies in its portfolio include Clinical Supplies Management, a provider of clinical trial drug packaging, labeling and logistics solutions; VitaLink Research, a clinical trial research site business focused on performing Phase II–IV clinical trials for pharmaceutical companies and contract research organizations; and United Claim Solutions, a payment integrity solutions company for third-party administrators, self-insured groups, labor and trust organizations, stop-loss carriers and health plans. More information about Great Point is available at www.gppfunds.com.

River Cities Capital Funds — Founded in 1994, River Cities provides growth-stage equity financing, targeting companies generating $5 million and more in revenue. Based in Cincinnati, Ohio, the firm seeks to invest in healthcare and IT companies, with typical initial investments of $5 million to $15 million. Companies in its portfolio include OrthAlign, a medical device company that provides surgical navigation products for orthopedic procedures; TissueTech, a biotechnology company developing regenerative amniotic tissue-based products for use in the ophthalmology, optometry, musculoskeletal and wound care markets; and Veran Medical Technologies, which develops minimally invasive therapies for interventional oncology procedures. More information about River Cities is available at www.rccf.com.

Baird Capital — Founded in 1980, Baird Capital is the direct investment arm of Robert W. Baird & Co. Based in Chicago, the firm makes private equity, venture capital and growth equity investments in healthcare and other targeted sectors. Healthcare companies in Baird’s current portfolio include Alpha Source, a provider of solutions for medical equipment maintenance and service, medical device battery manufacturing and medical equipment parts distribution; Prescient Healthcare Group, a product strategy consultancy to the global biopharmaceutical industry; New Vitality, a direct marketer of supplements and personal care products. More information about Baird Capital is available at www.bairdcapital.com.

Cortec Group — Founded in 1985, Cortec seeks to invest in middle-market companies with revenues from $40 million to $300 million and EBITDA of $7 million to $35-plus million. Based in New York, the firm invests in healthcare and several other sectors. Companies in its current portfolio include Harmar, a designer and manufacturer of mobility and accessibility solutions for individuals who use power wheelchairs/scooters or are otherwise mobility impaired; EVP EyeCare, which operates 11 ophthalmology clinics and five ambulatory surgery centers exclusively focused on the treatment of ophthalmic conditions; and Center for Vein Restoration, a manager of medical clinics providing treatment for varicose and spider veins. More information about Cortec is available at www.cortecgroup.com.

DFW Capital Partners — Founded in 1983, DFW focuses on making control investments in lower middle-market companies with revenue of $20 million to $100 million and EBITDA of $3 million to $10 million. Based in Teaneck, N.J., the firm invests in healthcare and a few other sectors. Companies in its portfolio include Children’s Dental Health Associates, a dental service organization providing management and support to pediatric dentists; Evolution Research Group, a provider of clinical research site services for special patient populations; and Saol Therapeutics, a specialty pharmaceutical company focused on rare diseases. More information about DFW is available at www.dfwcapital.com.

Revelstoke Capital Partners — Revelstoke is a private equity firm focused on building companies in the healthcare and related business services sectors. Revelstoke partners with entrepreneurs and management teams to execute on an organic and acquisition growth strategy. Revelstoke has approximately $1 billion of regulatory assets under management. Since the firm’s inception in mid-2013, it has completed 35 acquisitions, which includes 10 platform companies and 25 add-on acquisitions. Companies in its portfolio include Fast Pace, a regional manager of urgent care clinics, and Crossroads Treatment Centers, a regional provider of substance abuse treatment services through its outpatient treatment clinics in the southeastern United States. More information about Revelstoke is available at www.revelstokecp.com.

Levine Leichtman Capital Partners — Founded in 1984, Levine Leichtman makes structured equity investments in middle-market companies located primarily in the United States. Based in Beverly Hills, Calif., the firm invests in healthcare and several other industries. Companies in its portfolio include Capsa Healthcare, a provider of mobile workstations, medication management products, and pharmacy automation solutions; Genova Diagnostics, a specialty clinical laboratory; and Caring Brands, a franchisor of home healthcare services under three global brands, including Interim Healthcare in the United States. More information about Levine Leichtman is available at www.llcp.com.

TA Associates has announced a strategic growth investment in Healix.

Healix, based in Sugar Land, Texas, is a provider of infusion therapy management services and compounded intravenous pharmaceuticals for physician practices and hospitals.

TA Associates, a global PE firm based in Boston, invests in healthcare and several other sectors. With North American companies, TA seeks to make investments ranging from $50 million to $500 million in growing, profitable companies.

Financial terms of the transaction were not disclosed.

KKR has announced the closing of a new $1.45 billion fund, the KKR Health Care Strategic Growth Fund.

As its name suggests, the fund is dedicated to healthcare growth equity investment opportunities, specifically within the Americas.

KKR stated that the fund will seek to make investments of up to $100 million, focusing on themes such as clinical/technological innovation, cost containment and consolidation of therapeutic offerings or care providers.

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 positions.

GI Partners has announced the closing of its fifth fund, Fund V.

It was oversubscribed at its hard cap of $2.7 billion, surpassing the target of $2.3 billion.

GI Partners, based in San Francisco, is a middle-market private equity firm active in several sectors, including healthcare.

The firm indicated it would use Fund V capital for control-oriented investments in North American middle-market businesses. Fund V will primarily target investments with enterprise values between $250 million and $1 billion in healthcare and other sectors.