Hg and TA invest in Sovos, New venture StoneBridge sets out on a mission to revive troubled hospitals, Clearlake single-asset process moves quickly through market

Oaktree invests $500 million into StoneBridge, a new holding company that will buy distressed acute care hospitals and Hg and TA Associates back tax software provider Sovos.

Happy Friday!

New firm alert, sort of?

Joshua Nemzoff, co-founder of M&A consultancy Nemzoff & Co, is CEO of StoneBridge Healthcare, which is set to rescue cash-strapped hospitals, writes Sarah Pringle on PE Hub.

StoneBridge is capitalized with $500 million from Oaktree Capital, plus commitments from Medical Properties Trust, a healthcare-focused real estate investment trust, and debt and equity sources, Sarah writes.

StoneBridge will act as a holding company with each hospital it buys operating as a standalone subsidiary. It plans to differentiate by targeting distressed acute care hospitals in suburban and urban markets that need saving, versus smaller, rural hospital networks, Nemzoff told Sarah.

Read the full story here on PE Hub.

Top Scoops
Hg and TA Associates have invested in tax software provider Sovos. Hg is leading a majority investment in the firm, while TA is joining as a significant minority investor. Hg first invested in Sovos in 2016. Read more here.

Clearlake Capital is running a single-asset process for more time to manage its portfolio company Ivanti that has moved quickly through the market and could wrap up in September, I wrote on Buyouts. This is another example of a GP finding a way for more time to build out a growing asset while delivering proceeds back to investors in older funds who want to cash out.

Interestingly, Ivanti was just the subject of a regular M&A process in which TA Associates took a minority stake in the company, joining Clearlake. The M&A process helped set the valuation for the secondary deal, which presents an interesting dynamic to the secondary process. Usually, secondary deals are priced off valuations arrived at after one or more third-party sourced fair value assessments.

Read more here.

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