TPG’s GP-led group debuts in CCMP secondary; One Equity backs InfuCare

OEP invests in InfuCare while Cathay Capital backs CPAP.com.

Morning!

This is Chris, on the Wire on Wednesdays for MK. Hope your week is proceeding well!
Here’s an interesting development – we have TPG’s debut in the GP-led secondaries market. TPG, as Wire readers are undoubtedly aware, has been building an internal unit to invest in GP-led deals. The unit is led by Michael Woolhouse and Matt Jones.

TPG is making a small investment in CCMP’s process to move two assets out of its third fund and into a continuation pool. Facilities management services provider BGIS represents the majority of the deal, which also includes a small interest in Truck Hero, the majority of which CCMP exited to an L Catterton-led consortium in 2020. Both assets are held in the firm’s $3.6 billion third fund, which closed in 2014.

The CCMP deal, which is nearing final close, is led by AlpInvest, and includes a slew of other high-profile investors. Read the full piece here on Buyouts.

Healthcare: One Equity Partners senior managing director Greg Belinfanti spoke with MK Flynn about the firm’s strategic investment in InfuCare Rx, which provides infusion therapies and management services for patients with chronic conditions. The investment was announced this morning. Read the full interview here.

Check out a sample:

Why is OEP investing in home-based care? What’s the overall opportunity?
InfuCare is aligned with OEP’s thesis that care will continue to shift from institutional settings towards the low-cost home setting and that home-based management of complex chronic conditions will be increasingly important. The home and alternate site infusion market is large and growing, and OEP believes future demand will be driven by increasing prevalence of patients with chronic conditions and the need to provide services in a cost-effective care setting.

Recently, we’ve seen that the preference for at-home care has been accelerated due to covid-19 as patients and providers want to avoid on-site facilities and institutional settings. The rising incidence of hospital-acquired infections across facilities is increasing the demand for home infusion therapies to minimize this risk.

OEP has been following the general shift in care dynamics towards the lowest-cost care setting as payors push for cost savings. Specifically, with InfuCare, infusion therapy delivered in the home provides patients with the lowest cost of care relative to other alternatives and is always preferred by the patient.

And …

Cathay Capital is making a strategic investment in CPAP.com, which sells equipment for people with sleep apnea, writes Aaron Weitzman on PE Hub.

The sleep apnea market is estimated at about $3.5 billion, Aaron writes, with about 80 percent of people who suffer with the condition undiagnosed. CPAP.com has “lots of upside to grow, just from a public health standpoint,” Cathay partner Andre Puong said.

The segment includes both insurance reimbursement but also a large portion who make cash payments outside the insurance model. “The product offerings from insurance plans is not the one the end user always wants or needs; with durable medical equipment to stay reimbursed, patients have to stay compliant, which creates a market for people who don’t want to go through the insurance channel; and the online channel has been growing faster than general market of distribution,” Puong said. Read the full story here on the Hub.

That’s it! Have a great rest of your Hump Day! Hit me up with tips n’ gossip, feedback or story suggestions at cwitkowsky@buyoutsinsider.com or find me on LinkedIn.

Nominations: We’re looking for your recommendations for rock star women in private equity, mostly on the deal side (which has been historically male-dominated). Deadline to get in your recs is January 17, for publication in March. Our annual Women in Private Equity project comprises 10 mini-profiles of highly regarded women in the industry and a feature story about some burning topic around the status of women in the industry. Check out our past coverage of Women in PE here. Reach Buyouts editor Chris Witkowsky with questions and recommendations at cwitkowsky@buyoutsinsider.com.

Deal of the Year: Get your nominations in now for your best exits (either full or majority) that closed in 2021. Awards are given in seven categories: overall deal of the year, large-cap, middle-market, small-cap, international, turnaround and secondaries. Deadline is Friday, Feb. 11. Send to Chris Witkowsky, private equity editor, at cwitkowsky@buyoutsinsider.com. Go here for all the rules and regs!