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Need To Sell?

In late 2005, GCP Capital Partners, then known as Greenhill Capital Partners, teamed up with LLR Partners to invest in Healthcare Finance Group, a specialty finance company that serves the health care industry.

Terms of the deal were not disclosed, though Capital IQ lists the investment amount at $32.5 million. The investment was intended to “accelerate growth and expand the company’s product offering,” according to a press release announcing the deal. Almost seven years later, the company remains in both firms’ portfolios.

Based in New York, Healthcare Finance Group provides revolving credit facilities, term loans and other debt financing options to health care providers.

The company appears to have faced some challenges since the financial crisis in 2008 as investors in esoteric debt instruments have become more cautious. Earlier this year, Healthcare Finance Group abandoned a year-long plan to become an annual issuer of asset-backed securities, which would have revived a securitization program the company had sidelined since 2006. Citing challenges in the securitization market, the company instead decided to develop another financing option called variable funding certificates, which James Gelwicks, head of securitization at the company, said can be priced tighter than the term securitization market, according to a May 11 report in Total Securitization and Credit Investment.

It’s unclear how the company is performing in GCP Capital and LLR Partners’ portfolios, and executives at both firms did not return requests seeking comment. But a successful exit of the company couldn’t have hurt their respective fundraising campaigns.

New York-based GCP Capital in January quietly closed its third fund with $300 million commitments, $400 million short of the $700 million its executives had hoped to raise.

Philadelphia-based LLR Partners, meanwhile, is expected to begin raising its fourth fund later this year, sister Web site peHub reported in June, noting that the firm had been considering coming to market last December. Its third fund, which collected $800 million in commitments and was 52 percent invested as of last September, had by that point generated a -1.73 percent internal rate of return, according to the Pennsylvania Public School Employees’ Retirement System, peHub said.