New Mountain Capital LLC is in talks to buy Equian LLC from Great Point Partners, two sources said.
William Blair is advising on the sale, although no formal process has taken place, the sources said. Indianapolis-based Equian provides outsourced medical cost management solutions for self-insured corporations and insurance companies.
Equian produces about $20 million EBITDA. It is expected to sell for a high single-digit multiple, the sources said.
New York-based New Mountain, a generalist firm, is using its fourth fund to invest in Equian, a notice on the FTC site said. New Mountain Partners IV closed at $4.13 billion in 2014. Fund IV generated a 24.14 percent average IRR and 1.09x average multiple as of June 30, data provider Bison said.
The deal represents a nearly eight-year hold for Great Point. The Greenwich, Connecticut-based firm invested in the company in December 2007, when it was known as Health Systems International. In 2014, Health Systems changed its name to Equian.
Great Point, which focuses on healthcare, has two private equity funds. Great Point Partners I raised $156 million in 2006, while its second fund closed at $215 million in 2013. Performance data for Fund I was not available. Fund II, which is still in its J-curve, produced a negative 1.17 percent IRR and a 0.99x average multiple as of June 30, Bison said.
Executives for New Mountain, Great Point and William Blair could not be reached for comment.
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