Revelstoke Capital Partners recently completed its process moving Upstream Rehabilitation out of its debut fund and into a newly created vehicle giving it more time to manage the business, the firm announced earlier this month.
Coller Capital was lead investor on the deal, according to a person with knowledge of the transaction. Total value of the deal is not clear, though sources previously told Buyouts Revelstoke needed up to $1 billion for the deal. Park Hill Group worked as secondary adviser on the deal.
Denver’s Revelstoke invested in the company in 2015. It’s an outpatient rehabilitation services provider that has grown over the years, including an add-on last year of Drayer Physical Therapy Institute. As part of the add-on, certain Drayer shareholders, including Goldman Sachs, rolled portions of their proceeds for minority ownership in Upstream.
Upstream grew to be bigger than the companies Revelstoke normally invests in, which is why bringing other investors into the deal helped dilute the firm’s exposure, sources previously told Buyouts.
The deal allowed investors in Revelstoke’s debut fund to cash out of their exposure to Upstream or roll their interests into the continuation vehicle.
Revelstoke was formed when KRG co-founder Mark King left in 2013 along with Simon Bachleda and former chief fundraiser Dale Meyer. The firm closed its debut fund in 2015 on $303 million. It recently closed its second fund on its $714 million cap.
King died in 2016. Revelstoke is now led by Bechleda, Meyer and Managing Partner Russell Cassella, according to the firm’s Form ADV.
Single-asset deals accounted for just under 10 percent of GP-led transaction volume in 2018, according to Evercore’s full-year secondary volume report. Evercore estimated total secondary volume at about $72 billion in 2018. GP-led deals represented about 28 percent of total 2018 volume, Evercore said.
Action Item: Check out Revelstoke’s Form ADV here: https://bit.ly/2YH2Eyu