News
Leadership Newsletter
Healthcare
Fall 2019
GTCR Firm Update
Since the firm’s inception in 1980, GTCR has partnered with management teams to build and transform growth businesses, investing over $15 billion in more than 200 companies. In October 2017, we closed GTCR Fund XII, the firm’s largest fund to date, with $5.25 billion of limited partner capital commitments. To date, GTCR Fund XII has invested in nine platform companies; three of these companies are within the healthcare industry. GTCR Fund XII follows GTCR Fund XI, which we closed in 2014 with $3.85 billion of limited partner capital commitments. GTCR Fund XI invested in 17 platform companies, including 10 within the healthcare industry.
Healthcare Group Update
We believe that GTCR’s nearly 60 healthcare platform investments in our history have made us one of the leading private equity investors in the sector.
Over the last several years, the GTCR Healthcare team has remained very active. Since 2010, we’ve made 21 new platform investments and completed over 70 add-on acquisitions, for a total of over 90 healthcare transactions with a combined purchase price of over $13 billion. We have also realized several of these investments, selling nine healthcare portfolio companies over the past five years for a combined enterprise value of over $8 billion.
In 2019, we announced a management partnership, completed a platform acquisition and four add-on acquisitions and executed three realizations. In March, GTCR announced a management partnership with life sciences veteran Gregory Lucier to form Corza Health with the goal of acquiring assets to build a market-leading healthcare business with a focus on the broader life sciences and medical technology sectors.
In November, GTCR acquired Cole-Parmer Instrument Company, once again partnering with CEO Bernd Brust. Cole-Parmer is a leading global manufacturer of precision laboratory instrumentation and related consumables to a diverse range of customers across the life sciences, healthcare, environmental, industrial and other research-oriented end-markets. GTCR had made a previous investment in Cole-Parmer in 2014.
In addition to our focus on identifying new platform investments, we also continued to invest in our existing healthcare portfolio companies throughout 2019. Resonetics, Regatta Medical’s platform investment in the medical device contract manufacturing sector, added complementary capabilities to its portfolio with the add-on acquisitions of Caribou Technologies and Tru Tech Systems. Both of these acquired businesses are specialty contract manufacturing companies serving a similar set of interventional medical device customers to Resonetics. Our specialty pharmaceuticals portfolio company TerSera Therapeutics acquired an additional pipeline product, which recently received FDA approval. Following the approval, TerSera plans to launch the product in the oncology and auto-immune space in early 2020. Finally, Transaction Data Systems, our investment in the pharmacy management software and transaction processing industry, acquired Pharm Assess, a provider of profitability enhancement and compliance management tools sold to independent pharmacies.
Our activity in 2019 also included three realizations by Sotera Health. Supported by the company’s strong business performance, GTCR completed two debt-financed dividend recapitalizations in August and December, as well as a dividend distribution in September.
Portfolio Company Snapshot
Healthcare Core Verticals and Representative Investments**
Portfolio Company Profiles
2019 Capital Markets Activity
Healthcare Team Member Update
Healthcare Team Contact Information
Constantine (Dean) Mihas
Managing Director
(312) 382-2204 cmihas@gtcr.comSean Cunningham
Managing Director
(312) 382-2260 sean.cunningham@gtcr.comBen Daverman
Managing Director
(312) 382-2069 ben.daverman@gtcr.comJohn Kos
Principal
(312) 382-2229 john.kos@gtcr.comHunter Craig
Vice President
(312) 382-2263 hunter.craig@gtcr.comRadu Cret
Vice President
(312) 382-2253 radu.cret@gtcr.comLuke Marker
Vice President
(312) 382-2156 luke.marker@gtcr.comChris Smith
Vice President
(312) 382-2163 chris.smith@gtcr.comGeoffrey Tresley
Vice President
(312) 382-2151 geoffrey.tresley@gtcr.com
Appendix: Healthcare Investments Since 2000
- Actient Pharmaceuticals
- Albany Molecular Research, Inc.
- ATI Physical Therapy
- Capella Healthcare
- Ceba-Tech Specialty Solutions
- Cedar Gate Technologies
- Cole-Parmer
- Cord Blood Registry
- Correct Care Solutions
- Crealta Pharmaceuticals
- Curascript
- Curo Health Services
- Devicor Medical Products / Mammotome
- GeneraMedix Pharmaceuticals
- Graceway Pharmaceuticals (Fund VIII)
- Graceway Pharmaceuticals (Fund IX)
- GreatCall
- Health!Quest Partners
- HealthSpring
- LabPortal
- Managed Healthcare Associates
- Maravai LifeSciences
- Morton Grove Pharmaceuticals
- Ovation Pharmaceuticals
- Regatta Medical
- Riverchase Dermatology
- Transaction Data Systems
- Sotera Health (f/k/a Sterigenics)
- Sterigenics (Fund IX)
- TerSera Therapeutics
- Universal American (f/k/a APS Healthcare)
- XIFIN
This newsletter is for informational purposes only. This newsletter is not an offer to sell or a solicitation of an offer to buy an interest in any private fund sponsored by GTCR LLC (“GTCR”) or any of its affiliates, and was not prepared for existing or potential investors in such funds. This newsletter may not be relied upon in any manner as legal, tax or investment advice, and is not to be used for any investment purpose whatsoever. GTCR assumes no responsibility or liability for, and expressly disclaims any obligation or undertaking to update, the information contained in this newsletter. Please visit www.gtcr.com for a complete list of all active and prior GTCR portfolio companies, including portfolio companies by industry sector. See our Terms of Use for important additional information.
* This information represents the approximate number of platform acquisitions and add-on acquisitions, and the aggregate purchase price associated with such acquisitions, completed by GTCR’s Healthcare group since 2010, as of November 30, 2019. The actual amounts may exceed the amounts set forth above and, with respect to purchase price, include the amount paid by all investors in the applicable GTCR portfolio company. This information reflects investments that were made across multiple funds during different economic cycles. If a portfolio company has been categorized in more than one industry group by GTCR, it may be separately included in the number of platform acquisitions and add-on acquisitions, and the aggregate purchase price associated with such acquisitions, completed by each group. This information does not reflect or relate to fund or portfolio company performance in any manner whatsoever, and is provided solely to illustrate recent activity with respect to Healthcare portfolio companies.