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.

• FFL Partners announced the acquisition of a majority stake in Medicus IT, a managed information technology and cybersecurity services provider to more than 6,500 health care practitioners across 30 states. The transaction is intended to allow Medicus IT to better serve ambulatory outpatient care facilities and community health centers through mCare, Medicus IT’s managed service solution designed to address specific information technology, cybersecurity and compliance needs. FFL Partners is a San Francisco, California-based PE firm with investments in the healthcare and technology-enabled services sectors.
• GTCR announced its plan to acquire Caravel Autism Health, which is backed by Frazier Healthcare Partners. Caravel Autism Health is an autism services provider that uses proprietary software to diagnose and treat young children on the autism spectrum. Following the transaction, GTCR will have a portfolio company providing autism services in 50 locations across the Midwest and Washington. GTCR is a PE firm based in Chicago with investments in the financial services, health care, technology, media and telecommunications and business services sectors. Frazier Healthcare Partners is a Seattle, Washington-based PE firm with investments in middle-market health care businesses.
• Med-Metrix, LLC, a technology-enabled, revenue cycle management solutions provider backed by A&M Capital Partners, recently acquired Health Receivable Specialists, Inc. (“HRSI”). HRSI is headquartered in Philadelphia and specializes in revenue cycle management and patient access through a comprehensive suite of technology-enabled eligibility management services. Following the acquisition, Med-Metrix seeks to expand its end-to-end revenue cycle management offerings through the addition of HRSI’s Medicaid eligibility services. A&M Capital Partners is the investment strategy division of Alvarez and Marsal Capital, a PE investment firm with a footprint in the government services, financial services and health care industries.
• Community Visions and Community Concepts were acquired by Beacon Specialized Living. Virginia-based Community Visions provides residential and day support programs to support individuals with disabilities, while Community Concepts is a community action agency and non-profit organization supporting communities in Maine. The transaction is intended to further Beacon Specialized Living’s goal of providing person-centered care across the U.S. The Vistria Group, which backs Beacon Specialized Living, is a private investment firm with offices in Chicago, Dallas and New York City with investments in the health care, knowledge and learning solutions, financial services and housing industries.
• LifeLoop, a software platform for senior living communities backed by Vista Equity Partners and Chicago Pacific Founders, announced its purchase of Washington, D.C.-based Linked Senior. Linked Senior offers a comprehensive software platform for senior resident engagement. Following the transaction, LifeLoop will add 50,000 residents and 600 communities to its existing platform across the U.S. and Canada. Vista Equity Partners, based in Austin, Texas, is a leading global investment firm with more than $73B in assets under management investing exclusively in enterprise software, data and technology-enabled organizations across PE, permanent capital, credit and public equity strategies. Based in Chicago and San Francisco, Chicago Pacific Founders is a leading strategic PE firm focused on investing in growth companies within value-based care, health care services, AI and tech-enabled services, and caring for aging populations.