Revelstoke Capital closed its second fund on its $714 million cap, beating its $500 million target. The Denver firm also closed a process by which it bought Upstream Rehabilitation out of the debut fund.
Revelstoke Capital Partners (“Revelstoke”), a leading private equity firm focused on investing in healthcare services companies, announced today that it has completed fundraising for Revelstoke Capital Partners Fund II, L.P. (“RCP Fund II”) and Revelstoke Single Asset Fund I, L.P. (“RSAF I” and collectively with RCP Fund II, the “Funds”). The Funds will enable Revelstoke to continue its investment approach of partnering with management teams and entrepreneurs to build market-leading healthcare companies. Since the firm’s inception in 2013, Revelstoke has raised over $2.3 billion in equity commitments across various investing entities and has invested in 17 platform companies and 48 add-on acquisitions.
Simon Bachleda, Co-Founder and Managing Partner of Revelstoke, said, “We look forward to investing our new capital base in compelling risk-reward opportunities. With the significant growth in demand for high-quality healthcare procedures, products and services, we will continue our disciplined and systematic approach to thematic investing in attractive sub-sectors and operationally intensive post-investment value creation.”
RCP Fund II, with $714 million of commitments, was oversubscribed, exceeding its target of $500 million and reaching its hard cap.
RSAF I, with $660 million of commitments, was also oversubscribed. Concurrently with the closing of RSAF I, the Funds acquired Upstream Rehabilitation, the third largest provider of outpatient physical therapy services in the United States through a broad network of 746 clinics across 27 states. The Funds have substantial committed and available capital to advance Upstream Rehabilitation’s strategy of consolidating the physical therapy market.
“We appreciate the tremendous support from our existing and new limited partners, and we are pleased that our global investor base has expanded to include a broad group of financial institutions, endowments, sovereign wealth funds, family offices and pension funds,” commented Russell Cassella, Managing Partner of Revelstoke.
Revelstoke’s investment team will continue to be led by general partners Simon Bachleda, Russell Cassella, Eric Shuey and Andrew Welch.
Houlihan Lokey Capital, Inc. served as placement agent for RCP Fund II, and PJT Park Hill served as financial advisor to RSAF I. Simpson Thacher & Bartlett LLP provided legal advice to the Funds. Winston & Strawn LLP provided legal advice, and Harris Williams served as financial advisor to Upstream Rehabilitation.
Revelstoke is a private equity firm formed by experienced investors who focus on building industry-leading companies in the healthcare and related business services sectors. Revelstoke partners with entrepreneurs and management teams to execute on a disciplined organic and acquisition growth strategy to build exceptional companies. Since the firm’s inception in 2013, Revelstoke has raised over $2.3 billion of equity and has completed 65 acquisitions, which include 17 platform companies and 48 add-on acquisitions. For more information, visit www.revelstokecapital.com.