Chicago-headquartered mid-market private equity HCP & Company has acquired a majority interest in Polaris Hospital Company. Polaris, founded in 2007 and based in Brentwood, Tennessee, acquires, develops and operates hospitals and offers behavioural health and physical medicine/rehabilitation services. The investment in Polaris marks HCP’s fourth investment from its second fund and its first in the healthcare sector.
HCP & Company (HCP), a middle-market private equity firm headquartered in Chicago, announced that it acquired a majority interest in Polaris Hospital Company, LLC (Polaris). Polaris, founded in 2007 and based in Brentwood, Tennessee, acquires, develops and operates hospitals, offering behavioral health and physical medicine/rehabilitation services.
The investment in Polaris marks HCP’s fourth investment from its second fund and its first in the healthcare sector. “HCP has been searching for a platform to capitalize on the increasing demand for behavioral health services and the lack of facilities to supply the needed care. HCP is excited to partner with the Polaris team and we are pleased with their expertise in the development and operation of hospitals,” said Victor Maruri, Managing Partner of HCP. “Polaris represents a unique opportunity to invest in a healthcare platform well positioned to provide quality care to patients, including the large and growing geriatric population.”
HCP’s investment provides growth capital for the development of a hospital in Murfreesboro, Tennessee and to fund growth in new markets. In conjunction with HCP’s investment Mr. Mark R. Russell, a respected healthcare executive, joined Dr. Charles R. Treadway, co-founder of Psychiatric Solutions, Inc., as an industry expert on Polaris’ board of directors.
“Polaris’ management team has demonstrated their expertise in fostering diverse healthcare services with strong clinical outcomes at TrustPoint Hospital in Lubbock, Texas. HCP is pleased to have the opportunity to fund Polaris’ next strategic expansion in the attractive Murfreesboro market,” commented Jason Shafer, Vice President of HCP. “We look forward to continuing to partner with the Polaris team to further grow the Company and provide high quality care to those in need.”
Kevin Lee, Founder and Chief Executive Officer of Polaris and investor alongside HCP in the transaction, noted, “We are pleased to have HCP as our partner. Their expertise in assisting growth companies to reach full potential, coupled with their understanding of our unique strategy, positions Polaris to acquire and develop facilities in markets that need our services.”
About HCP & Company
HCP & Company is a private equity firm specializing in growth equity and buyout investments in companies with attractive growth prospects and revenues from $10 million to $100 million. HCP seeks to generate sustainable, long-term value for its partners through sector-specific (business services, consumer products, education and healthcare services) and/or demographic driven investment strategies. The firm has approximately $215 million in assets under management.
About Polaris Hospital Company, LLC
Polaris Hospital Company acquires, develops and operates physical medicine/rehabilitation hospitals and behavioral health hospitals in cooperation with acute care hospitals. The Polaris team is focused on delivering high quality services while providing an attractive environment for patients and staff. The Company operates TrustPoint Hospital in Lubbock, Texas and has a similar hospital in construction in Murfreesboro, Tennessee.