CVC joins Carlyle as investor in CFGI; Q&A with Rachel Arnold, Co-head of Vista’s Endeavor Fund; PT dealmaking flurry on the horizon

CVC invests in CFGI while physical therapy companies prep for sales.


PT assets galore: It’s a land grab in physical and occupational therapy right now, with industry tailwinds driving companies large and small to explore sales as valuations and buyer interest remains robust.

Lindsay Goldberg is prepping a sale of PT Solutions, having engaged TripleTree for sell-side financial advice; Elsewhere, Waud Capital Partners’ Ivy Rehab is expected to come to market later this year via Harris Williams, as is PennantPark-backed Pivot Health Solutions, which recently hired Jefferies for advice, sources familiar with the three situations said. Other smaller deals are in the making, too.

Big picture? There’s some minor reimbursement noise, however, assets have shown there are multiple ways to grow. Demographic trends are favorable with an aging population and there are musculoskeletal issues abound; strong tailwinds around orthopedic and elective procedures persist; and the future consolidation opportunity remains vast, sources said.
Meanwhile, clinical diversification is being rewarded, one source said. “When you look at the more successful platforms, they’re not just doing outpatient PT.”

This person pointed to Revelstoke Partners’ Upstream Rehabilitation, which creates stronger networks through specialized management services such as ‘preferred therapy providers,’ which connects its providers to health plans and benefit administrators. Another example is Partners Group’s Confluent Health, whose value-added services include continuing education, professional development and mentorships for its therapists.

Read my full report on PE Hub.

Q&A: Vista Equity Partners’ Rachel Arnold sat down virtually with PE Hub to talk about the firm’s strategy and ways the PE industry can bring in and retain diverse talent. Earlier this year, she was promoted to senior managing director and co-head of the Endeavor Fund at Vista. Here’s a quick preview:

What is your advice to young females starting out in the private equity industry?

My advice often to new entrants, regardless of gender, is to really understand and find what you love about working in private equity, evaluate why you’re doing this and how it contributes to meaningful outcomes and find that alignment of values with the organization and your teammates. For females specifically, I think seek out role models and mentors to help you navigate your career.

In general, diversity – beyond responsibility and being the right thing to do – is intrinsically linked to returns. Our shared success can only be enhanced by embracing the differences that everyone brings to the table.

For me, one takeaway is really that this notion of building an inclusive path to leadership isn’t optional. As asset managers, we must embrace the value of talented experience and rely upon achievements and demonstrable results versus the perceived and often biased requirements that I would say are frankly dated at this point.

Read the full interview on PE Hub.

Big one: CVC Capital is joining hands with Carlyle for a second time this year.
CVC has agreed to acquire a stake in CFGI in a deal valuing the non-audit accounting advisory firm at approximately $1.85 billion. Carlyle, which first invested in the company in March 2018, will remain invested, as will co-founders and co-CEOs Nick Nardone and Shane Caiazzo.

CFGI, headquartered in Boston, services the Office of the CFO as an independent advisor to assist with complex accounting and process improvement needs — be financial planning or risk management. Its clients span industries ranging from healthcare and technology to financial services and energy and manufacturing.

“We originally became aware of CFGI as a customer of their services and were quickly impressed with their capabilities and business model,” said Daniel Brand, senior managing director and US Co-Head of Business Services at CVC, in a press release.

The duo partnered earlier this year on MedRisk, which manages the physical therapy claims process and coordinates care for injured workers. CVC in March joined Carlyle as an investor, acquiring a little more than 50 percent economic ownership in the deal, PE Hub wrote. The structure was not what was originally contemplated, but CVC was ultimately more keen on a deal in which there was buy-in from Carlyle and management, CVC Partner Fazle Husain told PE Hub at the time.

Read more about CFGI on PE Hub.

That’s it for me! Have a great day, and as always, hit me up at with your feedback, tips or just to say hello!