Welsh, Carson, Anderson & Stowe said July 30 that its latest flagship closed at its hard cap of $4.3 billion, exceeding its $3.5 billion target. Limited partners’ capital totaled $4 billion, while the WCAS GPs and affiliated entities committed approximately $300 million. WCAS XIII LP will invest in healthcare and technology companies, mainly in the U.S.
NEW YORK, July 30, 2019 /PRNewswire/ — Welsh, Carson, Anderson & Stowe (“WCAS”), a leading private equity firm focused exclusively on the healthcare and technology industries, announced today that it has completed fundraising for WCAS XIII, L.P. (“WCAS XIII” or the “Fund”). The Fund, which was oversubscribed, closed at its hard cap of $4.3 billion, exceeding its $3.5 billion target. Limited Partners’ capital totaled $4.0 billion and the WCAS General Partners and affiliated entities committed approximately $300 million. New investors contributed over $700 million of capital. WCAS XIII’s re-up rate from WCAS XII investors was over 95% and the six largest investors in WCAS XIII increased their commitments from WCAS XII by 25%.
WCAS XIII will focus exclusively on investing in healthcare and technology companies, primarily based in the United States, consistent with the strategy the Firm has executed successfully over the past 40 years. Since the Firm’s founding, WCAS has raised over $27 billion of committed capital and has invested in over 85 healthcare and 100 technology companies. In investing WCAS XIII, WCAS will seek to partner with proven management teams to acquire growing companies and drive value through operating improvements as well as organic and strategic M&A growth initiatives.
As of March 31, 2019, WCAS XII, a 2015 vintage year fund, generated a net internal rate of return (“net IRR”) of 27% and a net Distributions to Paid-In Capital (“net DPI”) of over .5 times to investors adjusted for an April 5th distribution. According to the latest data from Cambridge Associates, WCAS XII is a top quartile fund for net IRR, net DPI and net Investment Multiple. Since 2013, the WCAS Partnerships have invested $5 billion of capital and distributed $14 billion.
WCAS President and Managing Partner Anthony J. de Nicola, said: “We are gratified to have received such strong support from our Limited Partners for WCAS XIII. This new fund will pursue our long-established strategy of investing in two of the fastest-growing industries in the U.S., technology and healthcare. We continue to see excellent opportunities for our talented Investment Professionals and highly experienced Operating Partners to acquire and actively support outstanding management teams in building their extraordinary companies.”
WCAS Managing Partner D. Scott Mackesy said: “As the Firm celebrates its 40-year anniversary, we are grateful for the strong relationships we have cultivated within the LP community as well as with our management teams. These relationships are the foundation of the Firm’s culture and are critical to WCAS’s enduring success in building businesses.”
WCAS’s Focus on Healthcare and Technology Investments
Within healthcare, WCAS XIII will continue to target companies in subsectors including: healthcare providers, specialty facilities, payor services and healthcare information technology.
Recent healthcare investments by the Firm include:
• Kindred at Home, the largest home health, hospice and personal care operator in the U.S.;
• MMIT, a provider of specialized market data and analytics to pharmaceutical and managed care companies; and
• InnovAge, a provider of high-quality senior care programs and services.
Recent healthcare investment realizations by the Firm include:
• Concentra, a provider of occupational health and urgent care services in the U.S.;
• U.S. Anesthesia Partners, a provider of anesthesia services, owned and operated in partnership with physicians; and
• United Surgical Partners International, a provider of outpatient surgery through ambulatory surgery centers and surgical hospitals.
Within technology, WCAS will continue to target services companies in business-to-business subsectors, including: payment technology, software and data analytics, financial technology, IT infrastructure, mobility and security & compliance solutions.
WCAS’s recent technology investments include:
• Avetta, a provider of cloud-based contractor risk management and compliance software to enterprise clients;
• Clearwater Analytics, an integrated data and software solution for investment portfolio accounting, reporting and analytics; and
• Intoxalock, a provider of vehicle-based Ignition Interlock Devices.
Recent technology investment realizations by the Firm include:
• Quick Base, a cloud-deployed no-code enterprise application development platform; and
• Asurion, a provider of handset protection and customer support services.
About Welsh, Carson, Anderson & Stowe
WCAS is a leading U.S. private equity firm focused on two target industries: technology and healthcare. Since its founding in 1979, the Firm’s strategy has been to partner with outstanding management teams and build value for its investors through a combination of operational improvements, internal growth initiatives and strategic acquisitions. WCAS has deep experience in acquiring Founder-led businesses and corporate carve-outs. The Firm has raised and managed funds totaling over $27 billion of committed capital. For more information, please visit www.wcas.com.