Lightyear Capital Buys PE-backed Paradigm Management

Lightyear Capital has acquired Paradigm Management Services, a provider of healthcare management services, from Sterling Partners. Middle-market investment bank Harris Williams & Co. announced the deal, which closed on Wednesday. Terms were not released. Harris Williams & Co advised Paradigm.

PRESS RELEASE
Harris Williams & Co., a preeminent middle market investment bank focused on the advisory needs of clients worldwide, announces the sale of Paradigm Management Services (Paradigm), a leading provider of healthcare management services, to Lightyear Capital (Lightyear). Paradigm was a portfolio company of Sterling Partners (Sterling). The transaction closed on February 1, 2012 and was led by the firm’s Healthcare & Life Sciences (HCLS) Group. Harris Williams & Co. acted as an advisor to Paradigm.

“We are thrilled to have represented Paradigm and Sterling in this transaction. Paradigm is a unique business that produces better clinical outcomes for severely injured workers at significantly lower medical cost. The transaction exemplifies the demand for companies with innovative business models that drive better results and have the potential to change the cost equation in healthcare,” said Todd Morris, a managing director in Harris Williams & Co.’s San Francisco office.

Headquartered in Walnut Creek, CA, Paradigm is a growing provider of catastrophic and pain care management services designed to dramatically improve clinical outcomes for injured workers and significantly reduce costs. Paradigm has a specialized network and acts as a medical hub connecting people with catastrophic injuries and chronic pain to nationally recognized expert doctors and specialists, best-in-class care facilities, and robust clinical data to guide decisions that deliver superior results. The company primarily provides its services to workers’ compensation insurance carriers and self insured companies and municipalities.

Sterling is a leading private equity firm with over 25 years of experience partnering with entrepreneurs to build market-leading businesses. With approximately $5 billion of assets under management, Sterling invests growth capital in industries with positive, long-term trends and provides ongoing support to management through a dedicated team of industry veterans, operators, strategy experts and human capital professionals. Sterling is a leader in education, healthcare and business services and has offices in Chicago, Baltimore, and Miami.

Lightyear is a leading private equity firm primarily making control investments in North America-based, middle market financial services companies. Based in NY, Lightyear, through its affiliated funds, has managed approximately $3 billion of committed capital with investments across the financial services spectrum, including asset management, banking, brokerage, financial technology, insurance and specialty finance.

Harris Williams & Co. (www.harriswilliams.com), a member of The PNC Financial Services Group, Inc. (NYSE:PNC), is a preeminent middle market investment bank focused on the advisory needs of clients worldwide. The firm has deep industry knowledge, global transaction expertise, and an unwavering commitment to excellence. Harris Williams & Co. provides sell-side and acquisition advisory, restructuring advisory, board advisory, private placements, and capital markets advisory services.

The firm’s HCLS Group focuses on transactions across the spectrum of healthcare market segments. For more information, contact Todd Morris in San Francisco at +1 (415) 288-4260 or Turner Bredrup, James Clark or Cheairs Porter in Richmond at +1 (804) 648-0072.

Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is authorised and regulated by the Financial Services Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business in the U.S. and Europe, respectively.