Stake Purchase • Healthcare Services

Metalmark Capital and The Blackstone Group Invest In Vanguard Health Systems

On June 1, 1998, private equity firms Metalmark Capital and The Blackstone Group invested in healthcare services company Vanguard Health Systems

Investment Context
  • This is Metalmark Capital’s 2nd and The Blackstone Group’s 1st transaction in the Healthcare Services sector.
  • This is Metalmark Capital’s 20th and The Blackstone Group’s 26th transaction in the United States.
  • This is Metalmark Capital’s 2nd and The Blackstone Group’s 3rd transaction in Tennessee.
Investment Fate
  • Vanguard Health Systems was sold to a publicly-traded strategic buyer in 2013 for 4.3B USD.

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Investment Summary

Date June 1, 1998
Target Vanguard Health Systems
Sector Healthcare Services
Investor(s) Metalmark Capital
The Blackstone Group
Deal Type Stake Purchase

Target Company

Vanguard Health Systems

Nashville, Tennessee, United States
Vanguard Health Systems, Inc. owns and operates acute care hospitals and complementary facilities. Since 1998, the company has acquired or developed 16 acute care hospitals with a total of 3,784 beds. In addition, the company owns a Medicaid health plan serving 94,600 members and a capitated health plan serving 47,600 members.
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Investors Overview 2

Investor

Metalmark Capital

New York, New York, United States

Category Private Equity Firm
Founded 2004
PE ASSETS 8.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Metalmark Capital is an independent private equity group focused on large company transactions in a wide range of industries. Metalmark is a hands-on investment firm looking to build long-term value in its portfolio companies. Broad areas of interest include natural resources/energy, healthcare services, industrials, food, transportation, and financial services. Metalmark was established in 2004 by the former principals of Morgan Stanley Capital Partners to manage the Metalmark Capital and Morgan Stanley Capital Partners funds. Metalmark is based in New York City.


Deal Context for Investor #
Overall 21 of 60
Sector: Healthcare Services 2 of 5
Type: Stake Purchase 16 of 20
State: Tennessee 2 of 3
Country: United States 20 of 56
Year: 1998 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
1998-01-01 Jefferson Smurfit

Saint Louis, Missouri, United States

Jefferson Smurfit Corporation is one of the nation's largest integrated producers of paperboard, packaging products and newsprint. In 1998, Jefferson Smurfit Corporation and Stone Container Corporation merged to form Smurfit-Stone Container Corporation, [Nasdaq: SSCC] a leading producer of integrated producer of containerboard, corrugated containers and packaging products.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
1999-01-01 Amerin

Chicago, Illinois, United States

Amerin provides private mortgage insurance coverage to mortgage bankers, savings institutions, commercial banks and other lenders.

Sell -
Investor

The Blackstone Group

New York, New York, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1987
PE ASSETS 394.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

The Blackstone Group is a global alternative investment management firm. The Firm's investment activities span real estate, secondary investments, hedge funds, credit, infrastructure, and private equity. Blackstone's private equity group targets opportunities globally including buyout acquisitions of established companies, development projects, growth equity financings, and industry consolidations. Sectors of interest include automotive, healthcare, chemicals, industrial, commercial property, lodging, communications, media/publishing, consumer & retail, packaging, consumer products, pharmaceuticals, energy, technology, entertainment, telecommunications, financial services, theme parks, food & beverage, and transportation. Blackstone's private equity real estate group looks for opportunities across North/South America, Asia, Australia/New Zealand, and Europe. The real estate group will consider both equity and debt investments. Areas of interest include healthcare, hotel, industrial, office, residential, and retail. The Blackstone Group was formed in 1987 and is based in New York, New York.


Deal Context for Investor #
Overall 30 of 365
Sector: Healthcare Services 1 of 6
Type: Stake Purchase 17 of 50
State: Tennessee 3 of 9
Country: United States 26 of 231
Year: 1998 5 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
1998-04-01 Intermedia Partners Of Tennessee Lp

Knoxville, Tennessee, United States

Intermedia Partners Of Tennessee Lp is one of the ten largest cable multiple system operators.

Buy $932M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
1998-07-01 Republic Services

Phoenix, Arizona, United States

Republic Services is a provider of non-hazardous solid waste collection services for commercial, industrial, municipal and residential customers across the US and Puerto Rico. Republic Services owns or operates transfer stations, active solid waste landfills and recycling centers. The Company also operates landfill gas and renewable energy projects. Republic Services was formed in 1996 and is based in Phoenix, Arizona.

Sell -