BPOC was early to identify and invest in healthcare staffing; take the Private Funds Leaders Study

Good morning, dealmakers. MK Flynn here, with today’s Wire.

This morning, I’m keeping an eye on how the U.S. and European Union’s sanctions against Russia in retaliation for what President Biden called Russia’s “unprovoked and unjustified attack on Ukraine,” will affect the global economy in general and the private equity industry in particular.

As my colleagues at Responsible Investor reported earlier in the week, AkademikerPension, one of Denmark’s largest funds, announced it is placing Russia in “investment quarantine” and will make no new investments in Russian sovereign debt or in the bonds and shares of companies where the Russian state owns more than 50 percent. I’d love to hear your thoughts on how the events unfolding in Europe will affect the PE industry. Feel free to email me at mk.flynn@peimedia.com

Onto news that’s closer to home. PE Hub’s series on healthcare-focused private equity firms continues today. If you’re a PE firm investing in healthcare and want to be considered for the series, shoot an email over to Aaron at aaron.w@peimedia.com

Healthcare staffing shortages. Today, we’re featuring insights from Greg Moerschel, managing partner at Beecken Petty O’Keefe & Company. Moerschel, who joined BPOC in 1997, outlined the firm’s approach to healthcare investing.

“We are not afraid to be slightly off-cycle with our investment strategy,” Moerschel told Aaron. “We write white papers that anticipate the next sector opportunity or change in market sentiment.”

The firm’s prescient approach to healthcare staffing is a good example. “We wrote a white paper eight years ago theorizing that we would be in a very challenging clinical staffing environment. That sector was historically viewed as somewhat cyclical to the economy, but we had a different view. We thought it would be a 20-year investment opportunity because of shrinking supply (retirements and aging of providers) and growing demand. We try to get ahead of trends.”

In November, the Chicago PE firm invested in Medical Solutions, a provider of staffing services for travel nurses.

Read Aaron’s story for more.

Value-based care. BPOC was involved in a healthcare deal announced just this morning. Denver-based Revelstoke Capital Partners made a significant growth investment in ClareMedica Health Partners, a provider of value-based primary care serving Medicare Advantage members in Florida. ClareMedica will continue to be led by CEO Roberto Palenzuela and the current management team, who will retain significant ownership in the business. BPOC, which has been an investor in ClareMedica since 2019, will also retain equity ownership. Russell Cassella, managing partner at Revelstoke, said, “Our investment in ClareMedica reflects Revelstoke’s avid support of the industry’s transition from fee-for-service to value-based healthcare, resulting in a greater emphasis on improving patient outcomes. ClareMedica’s commitment to providing high-quality care has made it a partner of choice for physicians and payors throughout Florida. With our experience in physician practice management and value-based care, we look forward to helping management build a broader regional platform that will increase access to high-quality care.”

What’s on your mind? Let us know by taking the Private Funds Leaders Study 2022, produced by Private Funds CFO and Private Debt Investor. From strategic decisions (what’s the outlook for fundraising post-covid?) to ESG issues (how are environmental concerns changing the operating environment?) and outsourcing (what functions do LPs want managers to outsource?), the leadership team of the modern private equity firm is grappling with some thorny issues. We’re looking for senior executives from private equity firms and private debt funds to participate in our annual sentiment study of private fund leaders. The results will be published as special reports. The survey will take only about 10 minutes of your time, and your submission is entirely confidential. Participants will receive a complimentary copy of the reports. The deadline is March 1. Click here to take the survey.

That’s all for now.

Until tomorrow,

MK