David Katz, co-head of GTCR’s healthcare investing group, has left the firm, according to a source with knowledge of the situation.
Katz joined GTCR in 2006 after serving as a managing director at Chicago buyout shop Frontenac Company. It is unclear what he plans to do next. A GTCR spokeswoman said the firm doesn’t comment about personnel issues. We were unable to reach Katz for comment.
According to an archived version of GTCR’s web site, Katz served as a director of APS Healthcare, ATI Physical Therapy Inc, Capella Healthcare, Correctional Healthcare Companies, Curo Health Services and Universal American Corporation.
Katz was sued, along with GTCR, last year in U.S. District Court in Delaware by healthcare benefits provider Universal American Corp. The company claimed it had been misled during the due diligence phase of its 2012 purchase of APS Healthcare from GTCR, according to court documents.
It is not clear if the lawsuit has anything to do with Katz’s departure. GTCR has filed a motion to dismiss the case, and a hearing has been schedule for May.
“This is a case about buyer’s remorse,” GTCR said in court documents in support of its motion to dismiss. Universal American Corp’s “fraud and breach of contract claims are belied by the fact that it entered into this transaction with its eyes wide open and armed with a team of sophisticated advisors who probed all aspects of APS’s business in an extensive due diligence process.”
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