Healthcare Private Equity Pioneers

An illustrious group of healthcare private equity pioneers discussed how healthcare investing has evolved from inception to current state and what the future holds. Moderated by Michael Lewis, business journalist, it featured insights from Senator Bill Frist, MD, founder of Frist Cressey Ventures; Annie Lamont, co-founder and Managing Partner of Oak HC/FT; Curtis Lane, founding partner of WindRose Health Investors; and Ira Coleman, Chairman of McDermott Will & Emery. Read on for discussion highlights.

Private Equity Pushes into Healthcare: 5 Latest Deals

There were more than 300 private equity deals in the healthcare industry in 2019, and the healthcare sector has continued to draw private equity investors in this year. Here are five private equity deals announced since Oct. 19, according to a list compiled by Becker’s CFO Report.

Amulet, Led by JLL Veterans, Raises Most of Second Healthcare Fund’s $500M Target

Fund II’s close may be helped along by Amulet’s recent agreement to sell Synteract to Syneos Health, which is expected to generate a more than 4x multiple and 40 percent gross IRR.

False Claims Act Risk to Private Equity Healthcare Investors

As many healthcare practitioners and attorneys can attest, private equity investment has become an increasingly prevalent feature of the healthcare industry. Recent developments in government enforcement and the attention paid to private equity investors in healthcare, however, raise significant enforcement risks for private equity firms interested in healthcare. Three recent False Claims Act (FCA) cases demonstrate the increasing risk faced by private equity firms involved in healthcare investment and guideposts for mitigating that risk.

Healthcare Investor Hopes for $300M

Ascend Partners, a healthcare-focused firm based in New York, has set a $300 million target for its debut private equity fund, according to an SEC filing.

Private Equity Pushes into Healthcare: 5 Latest Deals

There were more than 300 private equity deals in the healthcare industry in 2019, and the healthcare sector has continued to draw private equity investors in this year. Here are five private equity deals announced since Oct. 1, according to Becker’s Hospital CFO Report.

LLR Partners Closes Sixth Fund at $1.8B

LLR Partners, a lower middle market private equity firm, announces the final closing of LLR Equity Partners VI, L.P. (together with its affiliated investment funds, “LLR 6”) at $1.8 billion, inclusive of the General Partner’s commitment. LLR 6 continues the firm’s 21-year history of investing in and partnering with lower middle market growth companies. Similar to its predecessor, LLR 6 will focus on the technology and healthcare sectors, typically investing between $25 million and $100 million in companies.

Private Equity-Backed Dermatology Groups Got COVID-19 Small-Business Loans

The complex business structures of some private equity-backed dermatology groups allowed them to receive millions in COVID-19 funds intended for small businesses, federal disclosures reveal. Lawmakers and regulators structured the Paycheck Protection Program so that most private equity-owned businesses would not qualify. Only companies with 500 employees or fewer are eligible for the program, which offers loan forgiveness if the loans are spent on qualifying expenses. If a business is majority owned by a private equity firm, the employees of all the firm’s portfolio companies count toward its total employee tally, thus disqualifying many companies. However, a variety of factors have allowed some dermatology groups backed by private equity to receive millions in forgivable loans.

Leading Doctors Announce Creation of Allied OMS, a Novel Private Equity Vehicle for Oral Surgeons

A group of prominent oral surgeons along with executives who have significant experience in private equity have announced the creation of Allied OMS. Fort Worth Oral Surgery, Evergreen Oral Surgery, and DuneGlass Capital have jointly created Allied OMS, a Management Services Organization (MSO) serving premier Oral and Maxillofacial Surgery (OMS) practices throughout the US. The MSO allows doctors to focus on patient care while reducing the burdens and complexities of running the day-to-day business.

Houston PE Firm ZT Corporate Eyes Health Care, Auto Deals Amid Rebound in M&A

Fresh off of an acquisition of a local auto dealership, Houston-based private equity firm ZT Corporate is pursuing more deals, its chief executive said. A major vertical for ZT Corporate is health care. Through its subsidiaries Altus Healthcare System and Neighbors Health, the private equity firm operates a network of emergency clinics, surgery centers, hospice providers and more. In July, ZT Corporate announced that it would invest around $50 million in debt and equity into Irving, Texas-based Physicians Surgical Network Affiliates. PSN Affiliates provides specialized health care and surgical services through its Legent Health facilities. ZT Corporate has even more health care deals in mind, Taseer Badar, chairman and CEO of ZT Corporate, said.