Private Equity Deal Spotlight | Weekly Update

Health care continues to drive private equity (“PE”) activity, creating opportunities for investors and traditional health care providers. Transactions in the health care space are especially complicated, layering health care regulatory and reimbursement considerations on top of a complex securities, antitrust, privacy and security framework.

Hall Render’s PE team of attorneys and advisors leverage the strength and depth of our bench to navigate and efficiently execute PE transactions. The summary below includes highlights of recent PE deals and legislative updates.

• Versant Diagnostics, backed by Iron Path Capital, announced the acquisition of Associated Pathologists of Joliet, Ltd., a specialty pathology practice located in Joliet, Illinois. Versant Diagnostics is an independent physician services company based in Illinois that hopes to expand its nationwide network of pathology practices as well as increase its presence throughout the Midwest. The acquisition is possible due to a financial commitment from Iron Path Capital, a PE firm founded in 2021 that invests in the health care and industrial sectors.
• Cascade Capital Group recently announced its acquisition of Cedar Sinai Park, a residential and community-based care provider to elders and adults with special needs located in Portland, Oregon. Cascade Capital Group is a privately held health care real estate investment and management company focused on maximizing the value of skilled nursing, rehabilitation and post-acute care facilities.
• Houlihan Capital, a Chicago-based investment bank, advised Health Coalition, Inc. in its partnership with Provider Network Holdings, a Waud Capital Partners portfolio company. Health Coalition partners with specialty pharmaceutical manufacturers to provide high-touch, value-added, distribution services to providers throughout the United States. The partnership is intended to allow each business to reach a broader network of practices spanning numerous specialties. Waud Capital Partners is a growth-oriented PE firm based in Chicago, Illinois.
• Amedisys, Inc. reportedly agreed to divest over 100 home health and hospice locations to an undisclosed PE buyer. The sale is intended to address antitrust regulators’ concerns regarding its pending acquisition by Optum, a subsidiary of UnitedHealth Group. Amedisys provides home health care, hospice and palliative care by operating over 500 clinics throughout the United States.
• Invidia Capital Management, a health care-focused investment firm founded by former Goldman Sachs Partner Jo Natauri, announced its launch following a strategic investment from GCM Grosvenor, a global alternative asset management solutions provider. Invidia Capital Management will focus on upper-middle market investment opportunities where cost containment, quality, access and innovation are positioned to address the most pressing global health care challenges.
• VMG Health’s 2024 Healthcare M&A Report indicates that orthopedic physician groups were among the specialties with higher merger and acquisition deal volume throughout 2023. In addition, internal medicine, ophthalmology, dental group and ASC transactions remained prominent throughout 2023.