InnovaCare Health, (“InnovaCare” or “the Company”), a regional leader in integrated and value-based healthcare services, today announced the signing of a definitive agreement for a majority investment from Bain Capital Private Equity. The new partnership will accelerate the Company’s growth and enable InnovaCare to scale its innovative, physician-led model to enter key markets nationwide. Financial terms of the private investment were not disclosed.
InnovaCare will continue to operate under the leadership of President and CEO Dr. Richard Shinto, CFO Doug Malton and the current management team, who will retain significant ownership in the business. Summit Partners, which has been an investor in InnovaCare since 2019, will also retain equity ownership in the Company.
A leader in transforming care delivery, InnovaCare combines physician-led care models with cutting-edge technology and a focus on personalized, coordinated care to manage and improve the health of patient populations. InnovaCare’s integrated primary care provider network treats more than 250,000 patients annually, and the Company also supports physicians who collectively serve more than 27,000 Medicare Advantage members.
“We believe we are playing an important role in defining a new standard of excellence in healthcare and have the potential to do so at scale across the country,” said Shinto. “We are excited Bain Capital Private Equity is joining Summit Partners as our trusted partners who share our mission to deliver compassionate, high-quality and innovative care. Our ‘meet the doctors where they are’ approach resonates well with local providers because it gives them the roadmap and technology to support high quality outcomes while leaving the patient care decisions where they belong – with the physician. Our model recognizes that every market and practice has unique dynamics, calling for a tailored approach to care delivery.”
“Rick and his talented team have done an impressive job building InnovaCare into a leader at the forefront of improving healthcare delivery and have a proven track record of coordinating care and positively impacting the lives of patients, physicians and communities through innovative, value-based care,” said Chris Gordon, a Managing Director at Bain Capital Private Equity. “Enabling, supporting and partnering with physicians in the transition from fee-for-service to value-based care is one of the most quality-enhancing trends in healthcare today, and we believe InnovaCare is well-positioned to accelerate this transformation,” added Andrew Kaplan, a Principal at Bain Capital Private Equity. “We look forward to deploying our resources and experience to support the management team as they build a national platform that will increase patient access to high-quality, affordable care.”
Bain Capital has deep experience investing to support the growth of leading healthcare companies, including Aveanna Healthcare, Beacon Health Options, Cerevel Therapeutics, Grupo Notre Dame Intermedica, HCA Healthcare, IQVIA, QuVa Pharmaceuticals, Surgery Partners, U.S. Renal Care, Waystar and Zelis, among others.
“Over the past few years, InnovaCare has meaningfully scaled into a regional leader as a partner of choice for physicians and payors focused on providing members with high-quality care,” said Malton. “We believe InnovaCare is poised for continued success and national expansion, and we are excited to continue our partnership with Rick and his team and welcome Bain Capital to help accelerate the Company’s next chapter of growth,” added Darren Black, a Managing Director at Summit Partners.
The transaction is expected to close in the fourth quarter of 2021 and is subject to customary closing conditions, including requisite regulatory approvals. Committed financing for the transaction is being led by Benefit Street Partners LLC.
J.P. Morgan Securities LLC is serving as exclusive financial advisor, Kirkland & Ellis LLP as legal counsel, and PwC as accounting advisor to InnovaCare and Summit Partners. Ropes & Gray LLP is serving as legal counsel, and KPMG as accounting advisor to Bain Capital Private Equity.
About InnovaCare Health
InnovaCare Health improves the lives of patients and physicians through innovative solutions for value-based healthcare. Throughout its 20+ year history, InnovaCare Health has owned, operated and managed an integrated portfolio of leading medical groups, health plans, medical service organizations, clinical networks and more. For more information, please visit innovacarehealth.com or follow us on Facebook and LinkedIn.
About Bain Capital Private Equity
Bain Capital Private Equity (http://www.baincapitalprivateequity.com) has partnered closely with management teams to provide the strategic resources that build great companies and help them thrive since its founding in 1984. Bain Capital Private Equity’s global team of more than 275 investment professionals creates value for its portfolio companies through its global platform and depth of expertise in key vertical industries including healthcare. The firm has offices on four continents and has made primary or add-on investments in more than 1,000 companies since its inception. Among these investments has been partnering with many dynamic healthcare companies dedicated to quality, access, innovation and improved patient outcomes (to learn more please visit https://www.baincapital.com/healthcare/). In addition to private equity, Bain Capital invests across asset classes including credit, public equity, venture capital and real estate, managing approximately $150 billion in total and leveraging the firm’s shared platform to capture opportunities in strategic areas of focus.
About Summit Partners
Founded in 1984, Summit Partners is a global alternative investment firm that is currently managing more than $42 billion in capital dedicated to growth equity, fixed income and public equity opportunities. Summit invests across growth sectors of the economy and has invested in more than 500 companies in technology, healthcare and other growth industries. These companies have completed more than 175 public equity offerings, and more than 200 have been acquired through strategic mergers and sales. Summit maintains offices in North America and Europe and invests in companies around the world. For more information, please see www.summitpartners.com or follow on LinkedIn.
For Summit Partners