Firm: Welsh, Carson, Anderson & Stowe
Fund: WCAS XI LP
Target: $3.5 billion
Amount Raised: $3.7 billion
The firm finished 95 percent of the effort in the fourth quarter of 2008 but had left the pool open until the end of May to accommodate a few stragglers, the source said. Originally, Welsh, Carson, Anderson & Stowe had discussed seeking between $4 billion and $5 billion for the pool with investors, according to the source.
The firm didn’t respond to a request for comment.
Limited partners include
New York-based Welsh, Carson, Anderson & Stowe, which was founded in 1979, invests in the health care and information/business services sectors. Typically a control investor, the firm engages in a number of different types of transactions, including growth equity deals, buy-and-build transactions with smaller platform acquisitions, large public-to-private acquisitions and corporate carve-outs.
The predecessor fund,
Describing itself as “deal size agnostic,” Welsh, Carson, Anderson & Stowe has a history of pacing itself, having invested between $1 billion and $1.3 billion annually in each of the last six years. The firm is also very active in using add-on acquisitions to bulk up portfolio companies. WCAS X’s portfolio companies have already completed 25 add-on deals, according to the firm’s Web site.
WCAS XI is already being put to work. Its first investment was the July 2007 acquisition of a majority stake in PayCom, an Oklahoma City-based provider of online payroll services, in a deal worth $56 million. The only other transaction occurred in February 2009 when the firm bought a majority stake in GeoDigm Corp., a Chanhassen, Minn., maker of dental bridge, crown and implant products. The GeoDigm deal included an initial equity component of $40.3 million with the firm committing to provide a total of $100 million to support the company’s acquisition program.
Welsh, Carson, Anderson & Stowe is also currently investing from