Advent International, the global private equity firm, has sold its interest in Long Term Care Group, a US provider of outsourced services to the long-term care insurance industry, to Genstar Capital.
Connecticut-based CCP Equity Partners (formerly Conning Capital Partners) also sold its share in Long Term Care Group in the transaction, the terms of which were not disclosed. CCP focuses specifically on healthcare services and financial services in North America. Credit Suisse and Pepper Hamilton advised.
Founded in 1996 through the acquisition of United Health’s Long Term Care Group, the business was acquired by Advent and CCP in April 2004 in a US$130m transaction. The original deal involved US$75m in equity financing, of which Advent provided US$46m, CCP US$23m and management US$6m, with senior debt from Merrill Lynch Capital and subordinated debt from Northwestern Mutual.
Since then, the private equity firms have bolstered Long Term Care Group’s management, including CEO Bruce Baude and CEO Jeffrey Siobeck, and acquired and integrated Nation’s Carelink.
Advent’s previous experience in the business services sector includes the UK’s Equiniti; Dutch payroll processing provider RAET; Indian back-office support business CAMS; and National Bankruptcy Services of the US.
The global private equity firm’s track record in healthcare and life sciences includes UK specialist care provider Craegmoor Healthcare, bought from LGV Capital in July of this year; and Bucharest-based generic pharmaceuticals manufacturer LaborMed Pharma in March. In January, Advent sold American Radiology Services to CML Healthcare Income Fund in a US$151m buyout.
California-based Genstar Capital has investments in PR International, a clinic research organisation; MidCap Financial, a lender to middle-market healthcare businesses; 21st Services, a provider of information for the life settlement industry; Catalent Pharma Solutions, a contract manufacturing service provider for the pharmaceutical industry; and Harlan Laboratories, a pre-clinical products and services business for the pharma, biotechnology, agrochemical, industrial chemical and food industries.