Back to school: SPACs and more SPACs; Avista, Enhanced and Webster combine pain management businesses; Peak Rock snaps up Paragon Healthcare

It's raining SPACS and Peak Rock acquires Paragon Healthcare.

Happy Thursday!

Whether you’re back to the office, or not (I’m guessing you’re not), lots of new healthcare deals are coming to market or picking back up after the Labor Day weekend, I’m hearing. That said, it feels like things never really slowed through the pandemic despite an everything remote environment.

SPACs: I’ve been tied up all week wrapping up a deep dive on special purpose acquisition companies. Healthcare, like tech – or electric vehicles, if that’s your thing – is one industry we’ve seen a lot of activity on this front. From a PE perspective, recall recent SPAC deals such as Hellman & Friedman’s MultiPlan, Bain Capital Life Sciences’ Cerevel and Warburg Pincus-backed SOD Telemed.

Here’s a sneak preview:
“Private equity is slow. You don’t know when you’re going to get your money back. It takes five years to invest, another five years for them to harvest. That’s a slow boat, and they pay a management fee on top of that for 10 years,” said Dan Hennessy, chairman & CEO of Hennessy Capital, a SPAC sponsor that has completed four such deals and is in the planning phases for its fifth vehicle.

A SPAC, on the other hand, embodies a time certain and a valuation certain outcome, Hennessy told me. “It’s an IPO in a box, and it works. Within 90 days we’ll have you public. That’s a really powerful statement for a company that has a good compelling public company road story.”
The entire SPAC process is 12 or 15 months or 24 months at the most. “That’s why investors love it.”

Stay tuned for my full report.

This just in: Avista Capital Partners’ National Spine & Pain Centers has joined forces with Prospira PainCare, a portfolio company of Enhanced Healthcare Partners and Webster Equity Partners, according to three sources familiar with the matter.

Check out my story for more detail.

Top Scoops
Austin private equity firm Peak Rock Capital has clinched a deal to buy Paragon Healthcare, a specialty infusion provider, I learned. Read my story to find out where value landed.

Matrix Capital Markets Group, an independent investment bank, has formed a new healthcare arm. Check out our brief.

That’s all for today. As always, don’t hesitate to shoot me a note with any feedback, tips or just to say hello. Email me here.