Summit’s InnovaCare evaluates sale, WCAS invests in Leiters in partnership transaction, VSS backs newly-formed architecture, engineering & construction platform

Summit's InnovaCare seeks buyer while WCAS takes a majority stake in Leiters.

Good morning!

Value-based: Following the sale of InnovaCare’s Puerto Rico-based assets earlier this year, Summit Partners is seeking a buyer for its remaining Florida-based value-based primary care platform, according to four sources familiar with the matter.

JPMorgan Securities is providing sell-side financial advice on the process and the company has already received first round bids, the people said.

While value-based care companies continue to command heightened levels of private equity investment broadly speaking, the rapid M&A-driven growth of its Florida operations adds complexity in valuing the business. In three years, InnovaCare has assembled more than 35 physician practices serving 10 Florida counties, as well as a managed care plan and MSO network.

Bidders view real EBITDA around $40 million-plus, however the company is marketing adjusted EBITDA in the mid-$70 million range, sources said.

Wherever a potential transaction lands, InnovaCare as a whole is a winning investment for Summit, one source said. The firm originally bought the entire company in 2019 in a deal valued around the ballpark of $1.3 billion, this person said, and the recent sale of MMM Holdings alone is valued significantly north of that.

“Wherever this trades is the cherry on the top,” this person said. Check out my full report on PE Hub.

The Florida market is a crowded one broadly speaking. Besides public companies like Cano Health, which recently inked two acquisitions in the Florida market, and CareMax, a number of value-based groups have PE backing. Sun Capital Partners‘ Miami Beach Medical Group, Arsenal Capital Partners’ Best Value Healthcare, Clayton, Dubilier & Rice’s Millennium Physician Group, TA Associates’ InHealth MD Alliance, and BPOC’s ClareMedica Health Partners are some of them.

“Florida is the ‘Wild West’, Texas is early and everyone is looking, and Arizona is getting ripe,” one source said. The next phase? A round of consolidation in Florida, and then a collective pivot to Texas to go buy something, this source predicts.

This source also noted that buyers are getting smarter as they look to underwrite businesses of this vein, looking more diligently at factors like member churn or physician churn — which are exacerbated in Florida. What do you think?! Write to me at

Just in: Welsh, Carson, Anderson & Stowe has struck another partnership deal, acquiring a majority stake in Leiters, a rapidly growing leader in the FDA-regulated 503B outsourced pharmaceutical compounding industry.

A number of additional investors are joining the investor base, including Intermountain Ventures, Novant Health, Rex Health Ventures, Spectrum Health Ventures and UNC Health. Selling shareholders — all of which have made significant reinvestments — include Kaiser Permanente Ventures, Mayo Clinic, Frazier Healthcare Partners, SV Health Investors and H.I.G. BioHealth Partners.

Read more on PE Hub.

Consolidation: VSS Capital Partners invested in The HFW Companies, forming a new platform company focused on consolidating the fragmented universe architecture, engineering and construction (AEC) service firms.

The firm’s initial investment in HFW was between $20 million and $30 million and could increase, according to sources familiar with the deal. The platform’s first add-on is Miller Legg, a multi-disciplinary engineering and consulting firm based in Fort Lauderdale, Florida.

Financial terms of the transactions were not disclosed.

On the heels of Miller Legg, HFW is on track to close on two additional deals by the end of the month, according to Jeffery Stevenson, managing partner at VSS, a structured capital firm focused on the lower mid-market. “We have a robust pipeline of opportunities and there is a pipeline beyond those first three deals so that we can continue to grow.”

Read Aaron Weitzman’s full report on PE Hub.

That’s it for me! Have a great week ahead, hubsters! As always, write to me at with any tips, gossip or feedback.