Waud exits GI Alliance following Apollo-backed physician-led buyout and recap

Moving forward, GI Alliance's physician owners, led by CEO Dr. James Weber, own a controlling equity stake in GIA.

  • GIA was formed in 2018 in partnership with WCP
  • Since WCP’s initial investment, GIA expanded from two to 14 states
  • WCP invests in healthcare services and software/technology

Waud Capital Partners has exited GI Alliance, a gastroenterology practice management company, as part of a physician-led buyout and recapitalization backed by Apollo. The latter transaction put GIA at a valuation of $2.2 billion.

Moving forward, GI Alliance’s physician owners, led by CEO Dr. James Weber, own a controlling equity stake in GIA.

GIA was formed in 2018 in partnership with WCP. Since WCP’s initial investment, GIA expanded from two to 14 states.

“GI Alliance has achieved significant growth over the past four years, and I appreciate the support from our committed partners at WCP,” said Dr. Weber in a statement. “Our primary focus on delivering superior outcomes for patients has continued through this growth. With this transaction, GI Alliance will maintain its vision of being a physician-owned and physician-led organization. We are excited to embark on this new chapter with Apollo and we want to thank the WCP team for its contributions to our success.”

Kirkland & Ellis LLP and Katten Muchin Rosenman LLP served as legal advisors to WCP and GI Alliance’s practices and management, respectively. Latham & Watkins LLP and Houlihan Lokey acted as legal counsel and financial advisor, respectively, to the Apollo funds. Jefferies acted as financial advisor to GI Alliance and its shareholders. Greenhill & Co. acted as financial advisor to management and physician owners of GI Alliance. Blackstone & Ally led the lender group providing committed debt financing for the Transaction.

GI Alliance provides services to nearly 700 independent gastroenterologists operating in Texas, Arkansas, Arizona, Colorado, Florida, Illinois, Indiana, Kansas, Louisiana, Mississippi, Missouri, Oklahoma, Utah, and Washington.

Waud Capital Partners has about $3.7 billion since its founding in 1993. WCP invests in healthcare services and software/technology.