Investment Summary

Hersh Family Investments, Pacific Onset Capital, Marion Equity Partners, Yukon Partners and Eagle Private Capital Exits Avadyne Health

On April 18, 2016, private equity firm WindRose Health Investors invested in healthcare services company Avadyne Health from Hersh Family Investments, Pacific Onset Capital, Marion Equity Partners, Yukon Partners and Eagle Private Capital

Investment Highlights
  • This is WindRose Health Investors’ 14th transaction in the Healthcare Services sector.
  • This is WindRose Health Investors’ 21st transaction in the United States.
  • This is WindRose Health Investors’ 1st transaction in Illinois.
Investment Fate
  • Avadyne Health was sold to a strategic buyer in 2021.

Investment Summary

Date 2016-04-18
Target Avadyne Health
Sector Healthcare Services
Investor(s) WindRose Health Investors
Sellers(s) Hersh Family Investments
Pacific Onset Capital
Marion Equity Partners
Yukon Partners
Eagle Private Capital
Deal Type Recapitalization
Advisor(s) Houlihan Lokey (Financial)
McDermott Will & Emery (Legal)

Target

Avadyne Health

Moline, Illinois, United States
Avadyne Health is a provider of revenue cycle management services to a wide range of healthcare providers across the nation. Avadyne Health was founded in 1971 and is based in Moline, Illinois.

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Investor(S) 1

Investor

WindRose Health Investors

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 2000
PE ASSETS 2.5B USD
Size Large
Type Sector Focused
DESCRIPTION

MTS Health Investors LLC is a specialist private investment firm focused on opportunities in the services sectors of the healthcare industry. Specific areas of interest include managed care/health insurance, healthcare providers, distributors of medical/products and providers of outsourced services. MTS also invests in low-technology medical product manufacturers. MTS makes equity investments in US based companies valued between $25 and $300 million. Prospective transaction types include buyouts, divestitures, recapitalizations, take-privates, acquisition financings, and growth financings. MTS Health Investors was formed in 2000 and is based in New York City.


DEAL STATS #
Overall 21 of 39
Sector: Healthcare Services M&A 14 of 20
Type: Recapitalization M&A Deals 4 of 17
State: Illinois M&A 1 of 1
Country: United States M&A 21 of 39
Year: 2016 M&A 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2016-01-08 Shearwater Health

Nashville, Tennessee, United States

Shearwater Health is a provider of offshore clinical resources serving healthcare companies. Its clinical process outsourcing offering provides intelligent, patient-centered solutions that lower costs and improve outcomes for healthcare payers, providers, and service companies. Shearwater Health was founded in 1973 and is based in Nashville, Tennessee.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2017-03-10 Trumpet Behavioral Health

Lakewood, Colorado, United States

Trumpet Behavioral Health is a provider of behavioral health services, specializing in the treatment of children, adolescents, and adults with Autism Spectrum Disorder (“ASD”) and developmental disabilities, using the principles of Applied Behavior Analysis (“ABA”). Trumpet’s ABA therapy is delivered by therapists under the supervision of Board Certified Behavior Analysts. The Company currently has over 950 team members, providing therapy in over 25 locations across 8 states. Trumpet Behavioral Health was founded in 2008 and is based in Lakewood, Colorado.

Buy -

Seller(S) 5

SELLER

Hersh Family Investments

Irving, Texas, United States

Investor Investor Investor Investor


Category Family Office
Founded 2004
PE ASSETS 100M USD
Size Small
Type Sector Agnostic
DESCRIPTION

NLM Capital is a private investment firm focused on acquiring mid-sized businesses in the water resources/infrastructure services, education, healthcare, and real estate sectors. NLM seeks profitable businesses with experienced management and strong market positions with growth prospects. NLM's looks to commit $3 to $30 million of equity per deal, with a total target transaction size of $15 to $150 million. NLM will not invest in businesses with limited revenues or that are engaged in direct retail, restaurants, or oil/natural gas. NLM was formed in 2004 and is based in Irving, Texas.


DEAL STATS #
Overall 3 of 4
Sector: Healthcare Services M&A 1 of 1
Type: Recapitalization M&A Deals 1 of 1
State: Illinois M&A 1 of 1
Country: United States M&A 3 of 4
Year: 2016 M&A 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2012-11-07 Sapling Learning

Austin, Texas, United States

Sapling is a provider of online learning platforms and integrated digital solutions for the Science, Technology, Engineering, and Mathematics (“STEM”) marketplace. Sapling provides online homework and assessment solutions to both the higher education and high school markets.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2017-08-09 Team Envy

Dallas, Texas, United States

Team Envy owner and operator of global esports franchise Team Envy, the Dallas Fuel team in the Overwatch League, the Dallas Empire team in the Call of Duty League, and a founding member of Flashpoint, a professional tournament series for competitive CS: GO. Team Envy was founded in 2007 and is based in Dallas, Texas.

Buy -
SELLER

Pacific Onset Capital

Beverly Hills, California, United States

Category Private Equity Firm
Founded 2004
Size Small
Type Sector Agnostic
DESCRIPTION

Pacific Onset Capital is a private investment group focused on acquiring a smaller service-based business. Pacific Onset looks for companies with annual revenues between $5 and $50 million with consistent cash flow and identifiable growth opportunities. Areas of interest include business and commercial services, financial and insurance services, legal support services, healthcare support services, media, and publishing. Pacific Onset Capital is located in Beverly Hills, California.


DEAL STATS #
Overall 1 of 1
Sector: Healthcare Services M&A 1 of 1
Type: Recapitalization M&A Deals 1 of 1
State: Illinois M&A 1 of 1
Country: United States M&A 1 of 1
Year: 2016 M&A 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2006-01-10 Avadyne Health

Moline, Illinois, United States

Avadyne Health is a provider of revenue cycle management services to a wide range of healthcare providers across the nation. Avadyne Health was founded in 1971 and is based in Moline, Illinois.

Buy -
SELLER

Marion Equity Partners

Boston, Massachusetts, United States

Category Private Equity Firm
PE ASSETS 300M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Marion Equity Partners LLC (MEP) is a private equity firm that acquires growing businesses across a wide range of industries and geographies. MEP looks to invest $500,000 to $2 million per transaction. The Firm targets companies in healthcare, medical products, outsourcing, business services, recycling and financial services. Marion Equity Partners LLC is based in Boston, Massachusetts.


DEAL STATS #
Overall 4 of 5
Sector: Healthcare Services M&A 2 of 2
Type: Recapitalization M&A Deals 1 of 1
State: Illinois M&A 1 of 1
Country: United States M&A 3 of 4
Year: 2016 M&A 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-02-04 VRI

Franklin, Ohio, United States

VRI is a provider of telehealth monitoring, monitored medication dispensing and adherence solutions, and medical alert systems, serving over 100,000 actively monitored clients across the country. VRI was founded in 1989 and is based in Franklin, Ohio.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2017-07-20 HemaSource

Salt Lake City, Utah, United States

HemaSource is a technology-enabled distributor of medical products to the plasma collection industry. HemaSource utilizes a proprietary cloud-based inventory management and business intelligence software solution to help its customers gain supply chain efficiencies and decrease their plasma collection costs. HemaSource was founded in 1998 and is based in Salt Lake City, Utah.

Sell -
SELLER

Yukon Partners

Minneapolis, Minnesota, United States

Investor Investor Investor Investor Investor


Category Mezzanine Finance Firm
Founded 2008
PE ASSETS 640M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Yukon Partners is a mezzanine finance firm that works with private equity sponsors to fund a variety of investment situations. Yukon looks to invest $10 to $40 million to support buyouts, recapitalizations, take privates, and refinancings. Sectors of interest include automotive, building products, business services, consumer products, food/beverages, healthcare products/services, industrial manufacturing, niche manufacturing, and transportation/logistics. Prospective companies generally have revenues of $30 to $500 million and are profitable with EBITDA of $5 to $50 million. Yukon Partners was formed in 2008 and is based in Minneapolis, Minnesota.


DEAL STATS #
Overall 4 of 29
Sector: Healthcare Services M&A 2 of 3
Type: Recapitalization M&A Deals 1 of 1
State: Illinois M&A 1 of 1
Country: United States M&A 4 of 28
Year: 2016 M&A 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2016-03-29 Binswanger Glass

Memphis, Tennessee, United States

Binswanger Glass provides residential and commercial glass installation, repair, and replacement services across the United States. The Company offers products and services such as curtain walls, storefronts, shower enclosures, custom mirrors, and window repair for projects ranging from small residential jobs to large-scale commercial glazing. Binswanger Glass was founded in 1872 and is headquartered in Memphis, Tennessee.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2016-06-06 United Language Group

Minneapolis, Minnesota, United States

United Language Group is a provider of translation, localization and other language-related business services to customers across a diverse array of end markets, including life sciences, manufacturing, legal/financial, IT, and hospitality. United Language Group was founded in 2015 and is based in Minneapolis, Minnesota.

Buy -
SELLER

Eagle Private Capital

St. Louis, Missouri, United States

Investor Investor Investor Investor Investor


Category Mezzanine Finance Firm
PE ASSETS 1.0B USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Eagle Private Capital (EPC) makes private equity and mezzanine investments in middle-market companies. The Firm typically invests $4 to $15 million per investment. EPC looks to partner with management or other private equity investors to provide growth or change of control capital. EPC is based in St. Louis, Missouri.


DEAL STATS #
Overall 28 of 50
Sector: Healthcare Services M&A 6 of 6
Type: Recapitalization M&A Deals 2 of 4
State: Illinois M&A 4 of 4
Country: United States M&A 28 of 50
Year: 2016 M&A 3 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2016-02-16 Certica Solutions

Wakefield, Massachusetts, United States

Certica Solutions, Inc. provides an education technology platform, content and data solutions that enable K-12 educators and administrators to improve instructional and organizational performance. Certica partners with a diverse network of education technology companies, publishers and assessment providers; and delivers solutions directly to over 500 school districts, charter schools and educational service agencies. Certica Solutions was founded in 2000 and is based in Wakefield, Massachusetts.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2016-05-05 TrueNet Communications

Jacksonville, Florida, United States

TrueNet Communications, Inc. is a provider of communications network infrastructure services specializing in delivering consulting, engineering, installation and technical services to the Broadband, Wireless and Wireline Carrier, Energy and Utility, and corporate and government markets. TrueNet is extremely well positioned to capitalize on the demand for broadband infrastructure driven by the ever increasing need for bandwidth

Sell -