Kinderhook Industries has led a $500 million investment in Physician Partners, a primary care physician group and managed service organization in Florida. Guggenheim Securities, LLC served as financial advisor to Physician Partners on the transaction.
New York, NY – Kinderhook Industries, LLC (“Kinderhook”) announced today that Kinderhook has led a $500 million investment into Physician Partners, LLC (“Physician Partners” or the “Company”), a leading value-based primary care physician group and managed service organization serving over 137,000 members through a network of over 545 physicians throughout Florida. The transaction represents Kinderhook’s 51st healthcare-related transaction. Financial terms of the transaction were not disclosed.
“Since founding Physician Partners, we have focused on disrupting the conventional healthcare industry by providing 5-Star outcomes for our members through provider-aligned value-based care. It has resulted in a track record of success serving not only our patients, but our payor-partners as well,” said Sidd Pagidipati, Chairman and Founder. “Given their success investing in the healthcare industry, particularly with a focus on value-based, risk-bearing arrangements, we believe Kinderhook is the ideal partner to support and accelerate our growth as a leading value-based primary care provider.”
“The relationship between the Physician Partners management team and Chris Michalik at Kinderhook spans decades from the early days of WellCare. Chris Michalik, Matt Bubis, and the Kinderhook team bring a wealth of successful healthcare investing experience that will complement the deep team at Physician Partners,” said Mike Polen, Chief Executive Officer of Physician Partners. “We are excited to partner with Kinderhook as we transition to our next phase of growth with a commitment to our mission of delivering the people, processes, technology and expertise to transform sick care to Better Health care.”
“Over the past ten years Sidd Pagidipati, Dan Kollefrath, and Rupesh Shah have built an industry-leading business and recruited an exceptionally talented and deep management team at Physician Partners,” said Chris Michalik, Managing Director of Kinderhook Industries. “I am very excited to partner with Mike Polen again and look forward to supporting the Company’s long-term growth initiatives.”
“The Physician Partners model demonstrates the importance of provider alignment and developing consistent touchpoints with members to deliver better health outcomes,” said Matt Bubis, Kinderhook Vice President. “We are thrilled to partner with management to continue to focus on providing the superior quality of care that our members have come to expect.”
Financing for the transaction was arranged by Credit Suisse and Truist Securities, Kirkland & Ellis LLP served as legal counsel to Kinderhook, and Bass, Berry & Sims PLC served as regulatory counsel to Kinderhook. Fried, Frank, Harris, Shriver & Jacobson LLP served as legal advisor, Guggenheim Securities, LLC served as financial advisor, and Polsinelli served as regulatory counsel to Physician Partners.
About Kinderhook Industries
Founded in 2003, Kinderhook Industries, LLC is a private investment firm that manages over $4.7 billion of committed capital. We have made in excess of 300 investments and follow-on acquisitions since inception. Kinderhook’s investment philosophy is predicated on matching unique, growth-oriented investment opportunities with exceptional financial expertise and our proprietary network of operating partners. Our focus is on middle market businesses with defensible niche market positioning in the healthcare services, environmental / business services, and automotive / light manufacturing sectors. We have a track record of successfully and consistently building industry leaders. For more information, please visit: www.kinderhook.com