Webster leads $350m investment in newly-formed Retina Consultants of America

Including a fifth acquisition set to close in two weeks, the retina-focused PPM produces combined EBITDA of $80m-plus.

Webster Equity Partners formed the largest retina-focused physician practice management group in the country through the simultaneous acquisition and marriage of multiple specialty practices.

The newly created company is called Retina Consultants of America and is based in Southlake, Texas.

Webster, headquartered in Waltham, Massachusetts, invested $100 million in the newly formed platform, in addition to a $250 million LP co-investment, a source familiar with the transaction told PE Hub.

The initial platform includes Webster’s simultaneous acquisitions of Retina Consultants of Houston, Retina Group of Florida, Long Island Vitreoretinal Consultants and Retinal Consultants Serving Northern California.

Inclusive of a fifth acquisition, which is expected to close in two weeks, the company’s combined EBITDA will be north of $80 million out of the gate, the source said. Multiple other platforms are in the pipeline, the person added.

RCA is unique for a couple of reasons. While private equity firms have flocked to the eye care space broadly, including making investments in ophthalmologist groups that hire retina doctors, RCA represents the first strategy that focuses solely on retina specialists.

The PPM provider will partner with specialty practices in surgical and clinical retinal care that seek to eradicate blindness from macular degeneration, diabetic retinopathy and other retina diseases.

With nearly 50 physicians across more than 40 locations, RCA-affiliated practices span California, Texas, New York and Florida.

RCA also is notable because no PE firm has ever executed five physician practice management platforms at one time.

The medical group’s leadership team is led by CEO Robert Grabow, an experienced healthcare executive who most recently served as senior vice president at US Anesthesia Partners, where he led the anesthesia group’s Florida market. Grabow also is a former executive of Humana.

The C-suite team also includes Executive Chairman Jim Greenwood, former CEO of Vision Source, the nation’s largest network of private practice optometrists, and former CEO of Concentra, a provider of occupational medicine, urgent care, physical therapy and wellness services.

The investment was made through Webster’s fourth fund, which closed at its hard cap of $875 million in September 2018, beating its $650 million target.

Webster earlier this year pulled BayMark Health Services from the auction block after bids for the opioid-treatment giant failed to meet expectations, PE Hub previously reported.

As a buyer, Webster most recently teamed up with MedEquity Capital in May 2019 to purchase Belmar Pharmacies, a specialty compounding business.

Action Item: Reach Robert Grawbow of RCA at (972) 779-0794 ext. 2003