Great Point Partners has completed a dividend recap of Health Systems International, according to a Dec. 27 statement. Great Point, a Greenwich, Conn.-based PE firm, did not disclose financial terms of the dividend recap. However, Great Point said that the transaction was an “attractive opportunity” for HSI’s shareholders, which include company management and GPP’s LPs. Indianapolis-based Health Systems provides outsourced medical cost management services for self-insured corporations and insurance companies.
Great Point Partners (“GPP”) announced that its GPP I portfolio company Health Systems International (“HSI”), has successfully completed a dividend recapitalization. This transaction was an attractive opportunity for HSI’s shareholders, which include HSI Management and GPP’s Limited Partners, to receive a significant return on their investment in the company. After taking into account the dividend recapitalization, HSI still possesses ample borrowing capacity and will continue to pursue attractive acquisition opportunities in 2013.
This recapitalization occurred only five months after GPP I’s successful sale of Caprion Proteomics for 3.4x invested capital.
About Health Systems International
HSI is one of America’s fastest growing health care companies and has been recognized as an Inc. 500 private company. HSI is a leading provider of outsourced medical cost management solutions for self-insured corporations and insurance companies and is backed by Great Point Partners, LLC, a private investment firm focused on health care companies. Since 1987, HSI has utilized proprietary technology and medical discount services to relieve clients’ administrative burdens and achieve the lowest possible cost of medical care.
About Great Point Partners
GPP, based in Greenwich, CT, is a leading health care investment firm with approximately $600 million of equity capital under management. The HSI investment was made from GPP I, a fully committed $156 million lower middle market buy-out fund. GPP is currently investing from GPP II, which is targeted at $200 million.
Great Point manages capital in public and private equity funds. Great Point Partners has provided growth equity, growth recapitalization, and management buyout financing to more than 100 health care companies. Both the private and public funds invest across all sectors of the health care industry including behavioral health, biologics manufacturing, life sciences, health care services, hospital outsourcing, information technology, medical devices, specialty pharmaceuticals, and workers compensation. The firm pursues a proactive and proprietary approach to sourcing investments. Reach Great Point at 203-971-3300. http://www.gppfunds.com
This document is intended solely to provide information regarding Great Point Partners’ potential financing capabilities for prospective portfolio companies.